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September 16, 2025Strategic Management JournalOpen Access

The extent and drivers of internal agglomeration of U.S. multi‐unit firms

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Authors

JAJuan AlcácerHarvard UniversityJCJasmina ChauvinInter-American Development Bank

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Implication

This analysis reveals internal agglomeration benefits in multi-unit firms, highlighting labor similarity's role.

Key Points

  • Internal agglomeration is prevalent among multi-unit firms, particularly in service industries.
  • Over half of firms colocate their establishments more than expected, indicating strategic resource sharing.
  • Labor similarity serves as a consistent predictor for a firm's internal colocation of establishments.
  • Understanding the geographic distribution helps firms capitalize on internal synergies from colocating resources.

Cite This Study

Alcácer et al. (2025) studied this question.

synapsesocial.com/papers/68d4565b31b076d99fa5b27ehttps://doi.org/10.1002/smj.70011
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