Using Spatial Methods in Strategy Research

Spatial and geographic constructs have been incorporated into strategy research since its inception. Yet, strategy researchers have been slow to take advantage of methods designed specifically for these variables. This is despite the fact that spatial methods can be used to identify and remediate spatial autocorrelation—eliminating a potentially important source of bias in empirical results—and more broadly, to test hypotheses about spatial phenomena in novel ways. This article reviews the use of spatial constructs and variables in strategy research, summarizes spatial methods relevant to the strategy field, and shows how these approaches can enhance strategy research. The authors demonstrate the utility of these methods for a wide range of empirical inquiries into the role of geographic space in firm location, competition, and other phenomena, and offer three specific illustrations of their usefulness in the context of international strategy research.