COMPETITIVE ADVANTAGES OF THE FIRM BASED ON GEOGRAPHICAL EMBEDDEDNESS: A CASE STUDY

Collaborative advantage and geographical embeddedness of the firm have recently been receiving a growing amount of attention in a dynamic vision of the attainment and sustainability of the competitive advantage of firms. Concepts such as the Industrial District and Regional Cluster have been used in these studies, yet in spite of this interest little effort has been devoted to establishing links between these competitive dimensions and theories of differences in firm performance. This work consists of a multisource case study of the Spanish Ceramic Tile Industry. This empirical study focused on investigating the nature and implications of interfirm relationships and social control. The paper suggests that the competitiveness of clustered firms can be accounted for by low transaction costs and strategic knowledge-based resources.