Locational and managerial decisions as interdependent choices in the headquarter-manufacturing plant relationship: A theoretical approach

Carlos Eduardo Lobo e Silva, Geoffrey J.D. Hewings

Research output: Contribution to journalArticlepeer-review

Abstract

The main purpose of the paper is to provide a link between the location decision and the internal organization of vertically integrated firms. The results of the model show that the decisions about location and managerial (de)centralization are interdependent: For certain parameters, firms should change both aspects simultaneously as a response to lower communication costs. The positive correlation between the decentralization of decision-making and geographic decentralization predicted by the model is supported by empirical research.

Original languageEnglish (US)
Pages (from-to)703-717
Number of pages15
JournalAnnals of Regional Science
Volume48
Issue number3
DOIs
StatePublished - Jun 1 2012

ASJC Scopus subject areas

  • Environmental Science(all)
  • Social Sciences(all)

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