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Local Disorder and the Success of Firms in Residential Neighbourhoods

100%

Mollenhorst G. , Schutjens V.

nr 1

41-63

According to economic geography literature, the success of firms is affected by the local context, in particular when firms are socio-spatially embedded. We expect this effect to be stronger when firms face an increase in local disorder. We analysed data on 344 firms (active in retail, eating and drinking establishments, personal services and private education, business services, cultural activities, manufacturing and building) in 108 Dutch residential neighbourhoods, and data on the changes in social and physical disorder of those neighbourhoods, to examine firm success determinants. We find that it is not the degree of disorder that matters to local firms turnover, but rather recent changes in local disorder. More in particular, we find that local firm turnover is negatively affected by an increase in local disorder, but only when a firm depends on daily visits from predominantly local customers. Our results suggest that physical and social local interventions to create safe and clean public spaces will indirectly positively influence local firms and subsequently, the neighbourhood economy. This spill-over effect is promising for both residents, who benefit from local amenities and local ‘buzz’, and local entrepreneurs, whose firm success is stimulated.

Triadic Closure in Core Networks: Disentangling the Effects of Social Distance, National Origin Similarity and Shared Contexts

80%

Mollenhorst G. , van Duijn M. , Rydgren J. , Edling C.

International Review of Social Research

2016

tom 6

nr 4

146-162

Acknowledging that the composition and structure of personal networks is affected by meeting opportunities, social distance, and national origin similarity, we aim to disentangle their association with triadic closure in the core of personal networks. We use data (collected 2009) on the core networks of three groups of Swedes (all born in 1990): native Swedes, and first- and second-generation immigrants from Iran and former Yugoslavia, where the respondent (ego) mentions up to five core network members (alters) and whether each pair of alters (dyad) know each other (triadic closure). A three-level multiple membership logistic regression model is performed, which allows the testing of dyadic alter-alter effects, ego effects, and their interaction (i.e., ‘triadic’ effects) on triadic closure. We show that social distance, national origin similarity, and the sharing of social contexts are all associated with triadic closure in the expected direction, and that the effects of social distance and national origin similarity become smaller if shared social contexts are taken into account. The effects of the sharing of social contexts are the largest and are robust, indicating that shared social contexts are a dominant and more important condition for triadic closure than are similarity on relevant socio-demographic characteristics.