Path dependence or path creation of mature resource-based cities: A new firm entry perspective

Firm entry plays an important role in the industrial transformation of mature resource-based cities. This study describes the industrial evolution of resource-based cities at the firm level and uses kernel density estimation and econometric models to study the spatiotemporal characteristics and determinants of new firm entry from 2011 to 2019 in four mature resource-based cities. The results are summarized as follows: (1) New resource-based firm entry tends to be natural resource-oriented and path-dependent. The new non-resource-based firms show a high concentration in central urban areas, and the industry types are mainly wholesale and retail of resource products, cultural tourism, and equipment manufacturing. (2) Heterogeneous incumbent firms affect firm entry differently. Affected by competition and agglomeration effects, resource-based and non-resource-based incumbent firms have negative and positive impacts on new resource-based firm entry, respectively. Resource-based incumbent firm agglomeration positively influences new non-resource-based firm entry. (3) Besides incumbent firms, firm entry can also be affected by multidimensional factors, such as factor costs, economic environment, and institutional environment. Research on new firm entry can better reveal the path dependence and path creation process of the industrial development of resource-based cities from a micro-perspective.