TY - JOUR
T1 - The locational implications of management and production fragmentation
AU - Lobo e Silva, Carlos Eduardo
AU - Hewings, Geoffrey J.D.
N1 - Copyright:
Copyright 2020 Elsevier B.V., All rights reserved.
PY - 2010/9
Y1 - 2010/9
N2 - The main purpose of the work is to provide a theoretical link between the location decision and the internal organization of firms. In the simulation presented, (1) communication costs within the firm and (2) managerial structures affect both the production fragmentation process and the economic specialization of cities. More specifically, as either communication costs diminish or managerial structures become more flexible, manufacturing plants tend to move from the big city to medium cities, whereas headquarters and business services tend to agglomerate in the metropolitan area. The introduction of the internal organization of firms into the model, an aspect that is not modeled by Jones-Kierzkowski's approach, allows this article to formalize some empirical evidences pointed out by the literature.
AB - The main purpose of the work is to provide a theoretical link between the location decision and the internal organization of firms. In the simulation presented, (1) communication costs within the firm and (2) managerial structures affect both the production fragmentation process and the economic specialization of cities. More specifically, as either communication costs diminish or managerial structures become more flexible, manufacturing plants tend to move from the big city to medium cities, whereas headquarters and business services tend to agglomerate in the metropolitan area. The introduction of the internal organization of firms into the model, an aspect that is not modeled by Jones-Kierzkowski's approach, allows this article to formalize some empirical evidences pointed out by the literature.
KW - Business location
KW - Managerial structure
KW - Production fragmentation
UR - http://www.scopus.com/inward/record.url?scp=78049273787&partnerID=8YFLogxK
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U2 - 10.1590/s0101-41612010000300001
DO - 10.1590/s0101-41612010000300001
M3 - Article
AN - SCOPUS:78049273787
VL - 40
SP - 515
EP - 533
JO - Estudos Economicos
JF - Estudos Economicos
SN - 0101-4161
IS - 3
ER -