University of Groningen. Old firms in the Netherlands Brouwer, Aleid

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1 University of Groningen Old firms in the Netherlands Brouwer, Aleid IMPORTANT NOTE: You are advised to consult the publisher's version (publisher's PDF) if you wish to cite from it. Please check the document version below. Document Version Publisher's PDF, also known as Version of record Publication date: 2005 Link to publication in University of Groningen/UMCG research database Citation for published version (APA): Brouwer, A. E. (2005). Old firms in the Netherlands: The long-term spatial impact of firms' identities and embeddedness s.n. Copyright Other than for strictly personal use, it is not permitted to download or to forward/distribute the text or part of it without the consent of the author(s) and/or copyright holder(s), unless the work is under an open content license (like Creative Commons). Take-down policy If you believe that this document breaches copyright please contact us providing details, and we will remove access to the work immediately and investigate your claim. Downloaded from the University of Groningen/UMCG research database (Pure): For technical reasons the number of authors shown on this cover page is limited to 10 maximum. Download date:

2 Rijksuniversiteit Groningen Old firms in the Netherlands The long-term spatial impact of firms identities and embeddedness Proefschrift ter verkrijging van het doctoraat in de Ruimtelijke Wetenschappen aan de Rijksuniversiteit Groningen op gezag van de Rector Magnificus, dr. F. Zwarts, in het openbaar te verdedigen op donderdag 24 februari 2005 om uur door Aleid Elizabeth Brouwer geboren op 26 februari 1976 te Enschede

3 Promotor: Co-promotor: Prof. dr. P.H. Pellenbarg Dr. P.R.A. Terpstra Beoordelingscommissie: Prof. dr. P.P.P. Huigen Prof. dr. P. Kooij Prof. dr. E.F. Nozeman

4 Old firms in the Netherlands

5 Nederlands Geografische Studies / Netherlands Geographical Studies Redactie / Editorial Board Drs. J.G. Borchert (Editor in Chief) Prof.Dr. J.M.M. van Amersfoort Dr. H.J.A. Berendsen Dr. P.C.J. Druijven Prof.Dr. A.O. Kouwenhoven Prof.Dr. H. Scholten Plaatselijke Redacteuren / Local Editors Drs. R. van Melik, Faculteit Geowetenschappen Universiteit Utrecht Dr. D.H. Drenth, Faculteit Beleidswetenschappen Katholieke Universiteit Nijmegen Dr. P.C.J. Druijven, Faculteit der Ruimtelijke Wetenschappen, Rijksuniversiteit Groningen Drs. F.L.P.M. Kwaad, Fysisch-Geografisch en Bodemkundig laboratorium Universiteit van Amsterdam Dr. L. van der Laan, Economisch-Geografisch Instituut Erasmus Universiteit Rotterdam Dr. J.A. van der Schee, Centrum voor Educatieve Geografie Vrije Universiteit Amsterdam Dr. F. Thissen, Instituut voor Sociale Geografie Universiteit van Amsterdam Redactie-Adviseurs / Editorial Advisory Board Prof.Dr. G.J. Ashworth, Prof.Dr. P.G.E.F. Augustinus, Prof.Dr. G.J. Borger, Prof.Dr. K. Bouwer, Prof.Dr. J. Buursink, Dr. C. Cortie, Dr. J. Floor, Prof.Dr. G.A. Hoekveld, Dr. A.C. Imeson, Prof.Dr. J.M.G. Kleinpenning, Dr. W.J. Meester, Prof.Dr. F.J. Ormeling, Prof.Dr. H.F.L. Ottens, Dr. J. Sevink, Dr. W.F. Sleegers, T.Z. Smit, Drs. P.J.M. van Steen, Dr. J.J. Sterkenburg, Drs. H.A.W. van Vianen, Prof.Dr. J. van Weesep ISSN

6 Deze publicatie werd verdedigd als academisch proefschrift aan de Rijksuniversiteit Groningen op 24 februari 2005 Promotor: Co-promotor: Beoordelingscommissie: Prof. dr. P.H. Pellenbarg Dr. P.R.A. Terpstra Prof. dr. P.P.P. Huigen Prof. dr. P. Kooij Prof. dr. E.F. Nozeman ISBN X Copyright Faculteit der Ruimtelijke Wetenschappen, Rijksuniversiteit Groningen, 2005 Niets uit deze uitgave mag worden vermenigvuldigd en/of openbaar gemaakt door middel van druk, fotokopie of op welke andere wijze dan ook zonder voorafgaande schriftelijke toestemming van de uitgevers All rights reserved. No part of this publication may be reproduced in any forms, by print or photoprint, microfilm or any other means, without written permissen by the publishers. Gedrukt door het Grafisch Centrum, Rijksuniversiteit Groningen Voorkant: pentekening K.D. Schönfeld

7 Netherlands Geographical Studies 329 Old firms in the Netherlands The long-term spatial impact of firms identities and embeddedness Aleid E. Brouwer Utrecht/Groningen 2005 Royal Dutch Geographical Society / Department of Spatial Sciences University of Groningen

8 CONTENTS Figures 8 Tables 9 1 Introduction, old firms in the Netherlands Introduction The research field Research goal and questions Research layout Research methods 17 2 Old firms: a practical definition and a current state of affairs Introduction The firm defined; theoretically and statistically Theoretical considerations Statistical agencies Definition of the firm Old in the context of the firm Age as a measuring instrument A practical definition of old firms Search for data Old firms in the Netherlands in Absolute distribution of old firms Relative distribution of old firms Age distribution of firms Sectoral distribution of old firms Concluding remarks 48 3 Historical development of Dutch trade and industry, from 1820 till Historical perspective Pre-industrial period Industrial revolution Second industrial revolution or modern capitalism Development of trade and industry by sectors and size Data from the 19 th century Data from the 20 th century Analysis over time 63 5

9 3.3 Spatial distribution of industry Concluding remarks 83 4 Organizational ecology and industrial organizations; frameworks for path dependency and lock-in of old firms Introduction An evolutionary view on development and survival of 87 firms Industrial organization theory Organizational ecology theory Density model of competition and legitimation Liabilities and aging firms Adaptation, selection and structural inertia in old firms Path dependency in explaining the survival of old firms Path dependency: an introduction Path dependency in organizational ecology and industrial organization theories Age, inertia & historical lock-in: path dependent? Spatial path dependence Spatial implication of the evolutionary view on old firms Variables in long-term survival Hypotheses for testing Concluding remarks The survivors: golden oldies? Introduction Characteristics of old firms in the survey Analysis of survey Identities of old firms Spatial firm histories Sixteen small spatial firm histories Takeover, subsidies and history influencing survival Spatial distribution of some groups of old firms Spatial distribution of five manufacturing sectors Adverse environment a section tool? Concluding remarks Confrontation between old and younger firms, are they really different? Introduction Relocation and age of firms Firms and locational inertia Site and situation 165

10 6.3.2 Size, market and innovation Relocation history modelled Old and younger firms identities Discussion and concluding remarks Corporate identity and image of old firms Introduction Identity versus imgae Corporate identity Corporate image The wished identity and image Determinants of corporate identity Place and age in corporate identity Identities of old firms Expectations and connection hypotheses Content analysis Websites as a marketing tool Method and coding scheme Results of content analysis Continuous versus changed identity A trustworthy identity: a tool for survival? Concluding remarks Summary and conclusion Introduction: the research set-up Old firms in the Netherlands: a recapitulation Spatial behaviour of old firms Old firms identities Discussion Conclusions Demography of firms: contemporary findings Research implications 220 Samenvatting 223 Bibliography 231 Appendices 245 Acknowledgement 267 7

11 FIGURES 1.1 Research layout and reading guide Methods applied within this research Organization of businesses by the Dutch Bureau of Statistics Present location of old firms in the Netherlands Percentage of old firms per province, present location The residual figures for the share of old firms in the provinces of the Netherlands Age-pyramids of firms in the Netherlands Structure of labour force in 1514 in Noord and Zuid Holland in percentages GDP per sector as a percentage of the annual GDP in the Netherlands Most important industrial manufacturing groups per province, based on the absolute number of firms and factories in Most important industrial manufacturing groups per province, based on the absolute number of firms and factories in Most important industrial manufacturing groups per province, based on descriptive information of different factories in Most important industrial manufacturing groups per province, in , based on the absolute number of firms and factories with more than 10 employees and/or a power engine Most important industrial manufacturing groups per province, based on employees per municipality in the concerning manufacturing groups in the period Most important industrial manufacturing groups per province based on the absolute number of firms and establishments of firms and factories in Most important sectors (first level) and most important industrial manufacturing groups (second level) based on the absolute number of establishments in Most important sectors (first level) and most important industrial manufacturing groups (second level) based on the absolute number of establishments in Most important sectors (first level) and most important industrial manufacturing groups (second level) based on the absolute number of establishments in Most important sectors (first level) and most important industrial manufacturing groups (second level) based on the absolute number of establishments in Founding and mortality rates according to the density dependence model Path dependency when initial conditions favoured B Relative size-distribution of firms in the Netherlands in number of employees 122 8

12 5.2 Percentage of relocated establishments in the Netherlands, per age cohort Percentage of relocation in size distribution of old firms Percentage of relocation at different ages of old firms Sector and product continuity in percentage of the population of old firms and as percentages of the sector Percentage of firms per sector with and without a foreign establishment Absolute number of diverse elements why firms have the same or a changed identity Promotion poster The STORK school and in the background one of the factory s chimneys in Hengelo The outside of the STORK factory in Hengelo The spatial distribution of firms in the book and stone printing manufacturing group at their 2001 location The spatial distribution of firms in the construction manufacturing group at their 2001 location The spatial distribution of firms in the metal construction manufacturing group at their 2001 location The spatial distribution of firms in the shipbuilding & other vehicles manufacturing group at their 2001 location The spatial distribution of firms in the foodstuffs & beverages manufacturing group at their 2001 location Relative importance of identifying elements Framework of used tems and their relationships Relative importance of the different identifying elements Example 1 of website in content analysis Example 2 of website in content analysis Example 3 of website in content analysis Score per element on websites Relative frequency of elements in all websites in relation to the total number of sentences and pictures per website Relative frequency of elements on websites of firms with a changed versus a continuous idenity Path dependency and location of old firms 218 TABLES 2.1 Relative spatial distributrion of old firms over the Netherlands Sectoral division of old firms over the provinces in absolute numbers Manufacturing groups in absolute number of firms in Absolute number of old firms for each manufacturing group Percentage of workers employed in the industrial sectors The Dutch labour force since 1899 per sector in percentages of total 9

13 workforce Number of factories in 1853, 1859 and Percentages of firms per sector in the period Labour force in manufacturing industry per province in the period Percentages of firms in four sectors in the period Old firms characteristics Results of old firms takeovers and their influence on survival in absolute numbers Results of old firm s subsidies and their influence on survival in absolute numbers Results of old firm s disuptive periods in history in absolute numbers Personnel facilities old firms have or had in their past Importance of major cities in number of inhabitants in city hierarchy in the Netherlands in 1600, 1795 and Conclusions and accepted hypotheses of Chapter Results of questionnaires for type of location for all firms, the group of old firms and the group of younger firms in percentages Cross tabulation of on site expansion with age in groups Correlations premises and locational adaptation Correlations in market relationships Correlations between age, relocation and other variables Empirical results logit analysis Conclusions and accepted hypotheses of Chapter Examples of measuring image-elements with website content analysis Correlations between the various elements on the websites