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Spatial organization of firms

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Abstract

A firm?s production activities are often supported by non-production activities. Among these activities are administrative units including headquarters, which process information both within and between firms. Often firms physically separate such administrative units from their production activities and create stand alone Central Administrative Offices (CAO). However, having its activities in multiple locations potentially imposes significant internal firm face-to-face communication costs. What types of firms are more likely to separate out such functions? If firms do separate administration and production, where do they place CAOs and why? How often do firms open and close, or relocate CAOs? This paper documents such firms? decisions on their spatial organization by using micro-level data from the U.S. Census Bureau.

Suggested Citation

  • Yukako Ono, 2003. "Spatial organization of firms," Working Paper Series WP-03-30, Federal Reserve Bank of Chicago.
    • Handle: RePEc:fip:fedhwp:wp-03-30
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    1. Yukako Ono, 2006. "What Do Census Data Tell Us About Headquarters Location?," Economic Development Quarterly, , vol. 20(2), pages 129-141, May.
    2. J. Vernon Henderson, 2005. "Commentary on \\"Urban colossus: why is New York America's largest city?\\"," Economic Policy Review, Federal Reserve Bank of New York, issue Dec, pages 25-27.
    3. McCarter, Matthew W. & Wade-Benzoni, Kimberly A. & Kamal, Darcy K. Fudge & Bang, H. Min & Hyde, Steven J. & Maredia, Reshma, 2020. "Models of intragroup conflict in management: A literature review," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 925-946.
    4. Frank Tannery & Paul Laurent, 2007. "Les groupes à la croisée des territoires : géostratégie de l’innovation," Revue Finance Contrôle Stratégie, revues.org, vol. 10(4), pages 179-214, December.

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