SPATIAL COMPETITION,PRICING, AND MARKET POWER IN TRANSPORTATION: A DOMINANT FIRM MODEL*

ABSTRACT Transport firms compete over space. We develop a dominant firm model of transport services wherein one firm (the railroad) has market power, but competes in space with a competitive alternative (truck‐barge). When constrained, the dominant firm prices to “beat the competition”, which impedes efficiency when demand has some elasticity. We extend the basic model in a number of directions that include the relationship between monopoly prices and the generalized concavity of the shipper demand functions, the effects of multiple terminal markets, the role of joint production (fronthaul–backhaul markets), and the effects of capacity constraints.     

The Wire: Progress,Paradox, and Disaster in the Strategic Networking of China, 1881–1901

This study of the introduction of telegraphy to China in the late-nineteenth century tells three interrelated stories: China’s pursuit of telegraphic sovereignty with its strategic networking of the empire in the period 1881–99; the functioning of China’s hybrid express courier-telegraphic communications infrastructure; and the international communications crisis during the Boxer Uprising and the “Siege of the Legations” in 1900. The material reality of two inter-connected networks—the privately owned Imperial Telegraph Administration network and the government-run telegraph network—allowed Qing-era Beijing and its provincial governors to communicate with much greater speed. The materiality of these networks—how this new communications technology affected the practical realities of government communications, including the ease of lateral communications between provincial governors—is explored in the context of the communications crisis of 1900. In May and June of 1900 all telegraph lines to Beijing, and throughout much of North China, were cut or otherwise destroyed. While these blinded Western governments are no longer able to exchange telegrams with their Beijing-based envoys, the Qing express courier system continued to operate. Moreover, both the court and provincial officials quickly improvised ad hoc telegraphic communication protocols through the use of “transfer telegrams” (zhuandian) that relied on mounted express couriers between Beijing and those North China telegraph stations with working network connections. This assessment of real-time secret imperial communications between the Qing court and the provinces is based on the documentary register Suishou dengji (Records of [documents] at hand) maintained by communications managers in the Grand Council. China lost its telegraphic sovereignty in the capital region when Allied troops occupied the Beijing-Tianjin line of communications in the summer and fall of 1900. Moreover, Western dreams of laying, landing, and controlling submarine cables on the China coast were finally realized in North China by the end of 1900. The British, therefore, were able to add a critical section to their planned global network of secure telegraphic communications. China’s recognition of the Western and Japanese right of protecting the Beijing-Tianjin line of communications was codified in Article 9 of the Boxer Protocol of September 1901. These losses of China’s telegraphic sovereignty would not be completely reversed until after 1949.     

HOW DO SUPPLY CHAIN NETWORKS AFFECT THE RESILIENCE OF FIRMS TO NATURAL DISASTERS? EVIDENCE FROM THE GREAT EAST JAPAN EARTHQUAKE

This paper uses firm‐level data to examine how supply chain networks affected the recovery of firms from the Great East Japan Earthquake. Extensive supply chains can negatively affect recovery through higher vulnerability to network disruption and positively through support from trading partners, easier search for new partners, and general benefits of agglomeration. Our results indicate that networks with firms outside of the impacted area contributed to the earlier resumption of production, whereas networks within the region contributed to sales recovery in the medium term. The results suggest that the positive effects of supply chains typically exceed the negative effects.     

Knowledge Production,Urban Locations and the Importance of Local Networks

This paper analyses the relationship between knowledge production and urban locations in industrial design, a knowledge-intensive business service (KIBS). KIBS concentrate in urban locations. This is often explained by the co-location of client firms and market access in large cities. Recent research on knowledge production, however, reveals that knowledge productive networks are significant for both the competitiveness and location of KIBS. Thus, to understand the urban location of industrial design, it is important to analyse how knowledge production is organized within the industry. Industrial design is concentrated in urban locations, but most of its clients are located elsewhere. Hence, it seems that industrial design firms concentrate in urban locations mainly because their knowledge networks include specific types of formal and informal local social networks.     

Localized mobility clusters: impacts of labour market externalities on firm performance

This article analyses the impact of labour market-induced externalitieson firm performance by using a unique database that connectsattributes of individuals to workplaces for the entire Swedisheconomy. Based on the analysis of 256,985 workplaces, our resultsshow that firms belonging to networks of local job mobility(i.e. ‘localized mobility clusters’) significantlyoutperform other similar firms within the local labour market.The results also indicate that concentrations of similar andrelated firms do not explain any considerable part of the variationsin firm competitiveness. Labour market externalities derivedvia local job mobility produce significantly more powerful effectsfor the involved firms as compared to the degree of co-location,diversity and scale.     

Firm networks,borders, and regional economic integration

Borders reduce interprovincial trade relative to intraprovincial trade. Using trade and firm ownership microdata over a 9-year period (2004–2012), we show firm ownership networks, like trade flows, diminish with distance and borders and that the estimated effect of provincial borders on trade may fall by almost 75% after accounting for firm networks. This suggests the weaker presence of firm networks across borders has a significant, although statistically imprecise, effect on interprovincial trade. These findings reinforce the view that understanding border effects require not only the identification of barriers to trade but also barriers to investment across borders.     

RESISTANCE AND STRATEGIC RESPONSES IN FOOD SUPPLY NETWORKS: METRO CASH & CARRY IN BANGALORE

The transnational expansion of large retail and wholesale companies such as Metro, Carrefour and Wal‐Mart has caused changes in the market situation and consequent power shifts, not only in the retail sector but also in the supply networks in host countries. These developments at least potentially endanger the livelihoods of old established retailers, intermediaries and employees of these businesses. Thus, it is not surprising that the investments of the transnational companies can result in resistance from those affected. As an analysis of Metro and its activities in the federal state of Karnataka in India shows, this resistance can influence the activities of the company to develop a modern supply network. This study analyses the way in which the actors of resistance develop and exercise power and how this in turn influences Metro. The global production network (GPN) approach is used as an analytical framework. The results emphasize the importance of networks external to the firm for the analysis of processes of globalization. The company's behaviour cannot be understood unless the resistance is taken into account. The study shows that the GPN framework provides the tools to analyse the influence of actors such as civil society groups, trade unions and associations as part of the production network. However, up to now this option has rarely been used.     

Governmentality and power in politically contested space: refugee farming in Hong Kong's New Territories, 1945–1970

A small proportion of Mainland Chinese refugee flows into British Hong Kong following the 1949 Communist Revolution in the People's Republic of China were vegetable farmers, who by the late 1960s engendered a vegetable revolution in New Territories agricultural space. Heterogeneous actors and their differing modalities of power in the late-colonial government possessed an active managerial role in this vegetable revolution anchored in issues of marketing and land tenure. While post-World War Two developmentalist ontologies help explain government intervention in the post-war agricultural economy, this research focuses primarily on the disciplinary techniques deployed within the governance rationalities of the early Cold War period to cultivate pro-government loyalties among a potentially proletarianized, trans-border refugee farming population perceived by colonial authorities as being susceptible to Communist influence. As ‘experimental space’, marketing innovations were a qualified success, but progress in land reform failed because of the local geopolitical context of colonial rule in the contested space of the New Territories.     

Local Production Systems and Organizational Change: Hierarchization and Competing Firm Networks in Marinha Grande,Portugal

European local production systems have evolved and restructured in recent decades. One path of change has been an internal reorganization towards more hierarchization among local firms and the emergence of formal firm networks and an economic reconcentration. This article supports these observations and provides evidence from the mould industry in Marinha Grande, Portugal. The formal firm networks are, however, heterogeneous and they constitute new competitive strategies, that challenge the historical organization and institutions of the industrial districts and local production systems in which small was beautiful.     

Public financial support and firm-specific characteristics: evidence from Portugal

This paper analyses the underlying factors explaining a firm’s use of public financial support and possible misalignments between policy goals and the characteristics of firms holding a public grant. Using firm-level data for a sample of Portuguese manufacturing firms over the 2006–2013 period, we investigate how public financial support at the firm level is related to observable firm’s characteristics. Our findings suggest that firms lacking resources, capabilities and international involvement seem to be those with great barriers to use public financial support. Therefore, it cast doubts on the efficiency of public financial support programmes aiming to mitigate market failures, by assisting constrained firms. In turn, public financial support seems to boost market selection mechanisms by favouring ‘good’ firms and pushing less-endowed firms outside the market.     

The networks producing television programmes in the Cologne media cluster: new firm foundation,flexible specialization and efficient decision‐making structures

Based on the example of the production network of television (TV) programmes in Cologne's media cluster, this article will examine two aspects in order to obtain a deeper understanding of how localized production networks arise and how they function. First of all, the role of the founding of new firms within a localized production network will be analysed in detail. As a second step, the decision structures within the production network will be discussed. In this context the question arises as to how the parts of a particular production chain are linked together and how a smooth production flow can be guaranteed. The theoretical findings will be verified by an empirical study of the networks producing TV programmes in Cologne.     

权力集中化、生产片断化与全球价值链下本土产业的升级

全球领先企业的权力集中化和生产的片断化导致价值分配的非均衡,并进一步加剧了全球生产网络中权力结构的不对称。本文提出全球价值链上的权力是一种建立在战略资源基础上的不对称的话语权,并归纳了八种基本的市场权力形式。通过对全球十大工业制成品及服务业的市场份额分析,发现技术能力和品牌能力是全球领先企业市场权力集中的主要根源,也是决定全球价值链上价值分配的决定性因素。嵌入全球价值链有利于发展中国家的本土企业迅速提高生产能力、接近全球市场和技术通道,但是从生产能力到创新能力的升级过程并非自动发生;全球价值链生产片断化带来创新过程的垂直分离和重新整合,发展中国家产业升级的关键在于本土企业的吸收能力和学习速度。     

Trade Fairs as an Export Marketing and Research Strategy: Results from a Study of Korean Advanced Machinery Firms

Manufacturers pursuing information on potential customers in distant, dynamic markets confront myriad obstacles. To address this, many firms attend international trade fairs in order to market their products, to meet with prospective customers, and to tap into buzz related to potential international opportunities. In many ways, moreover, such exhibitions can serve as short‐term agglomerations of same‐industry activity, particularly important for producer–user interface geared towards innovation. The goal of this paper is to explore how Korean machine tool manufacturers utilise a major global trade show in Seoul to minimise the difficulties associated with accessing a global customer base, inclusive of their activity at this show geared towards innovation. Evidence from firm‐level surveys and interviews suggest that the amount of importance placed on trade fair attendance as part of a firm's internationalisation strategies is related to export growth. Additionally, a new insight generated is that firms that participate in trade shows as part of their innovation process also demonstrate higher rates of export intensity. Finally, we may be witnessing newly discovered, technology‐driven, symbiotic relationships between online portal sites, vendors, and potential customers at these trade fairs, where virtual services are nonetheless augmented by a need for a continued onsite presence at these exhibitions.     

Innovation projects and local production networks: A case study of Hertfordshire

This paper evaluates some of the key arguments underlying what is called here the local production network paradigm (LPNP). These are presented as three interlinked hypotheses that turn on the idea that firms competing in world markets need to accommodate continuous change by fostering product or process innovation. The definition of innovation used in this study is “the commercially successful exploitation of new technologies, ideas or methods through the introduction of new products or processes, or through the improvement of existing ones” (EC DG XIII, 1996, p. 54).

One conventionally described organizational response to this requirement to accommodate continuous innovation is to dis‐integrate firms and set up local production networks. Local production networks are defined in this study as “collaborative linkages between local firms and local factors of production”. Such networks are said to rely on local resources of various kinds to enable them to innovate on a continuous and incremental basis. As a result of such dependencies on local factors, and their interconnectedness with each other, the local production network (LPN) firms then become ‘embedded’ in their localities. Such networked economies have been variously described as new industrial districts, areas of flexible specialization, and innovative milieux.

The evidence presented to test these hypotheses is based on a case study of innovative, award‐winning firms in Hertfordshire. The findings show that although these firms do compete successfully in fast‐moving international markets, they do not rely much on local production networks, as defined here, to enable them to do so. The findings call into question the general applicability of the LPNP. Questions are raised particularly with respect to innovation in the important minority of highly innovative core metropolitan regions.

Innovation is argued to be an interactive process that is both driven by a steady supply of technological advances and stimulated by different types of consumer demand. In the case of the firms interviewed in Hertfordshire, most of their innovative projects were developed by the firms working individually, and in isolation, from other local businesses using high quality, knowledge, information, human resources and venture capital. At the same time, these firms were also pulled by demands from military, health and company consumers. Only in the case of the minority of innovations that were purchased in the first instance by private final consumers were local production networks of some significance.     

Tourism global production networks and uneven social upgrading in Kenya and Uganda

This paper addresses how the growth of tourism global production networks (GPNs) based in Kenya and Uganda created uneven social upgrading outcomes for workers and communities. A tourism GPN and social upgrading framework follows a global political economy approach to analyzing tourism development and labor in diverse tourism geographies. Two tourism GPNs are investigated: Mombasa, Kenya, and Murchison Falls National Park, Uganda. Four main findings emerge: (1) governance relationships between tour operator and accommodation firms directly impacted social upgrading outcomes for hotel workers and indirectly for excursion workers; (2) excursion workers and community members had precarious connections to tourism GPNs; (3) public governance and collective power were key components to social upgrading while supporting its unevenness; and (4) societal embeddedness constructions around gender and regional space influenced worker and community social upgrading potential. Social upgrading is shaped by a confluence of firm, institution, geography, and labor conditions that differentially materializes in specific tourism GPN arrangements.     

The Role of Leading Firms in the Evolution of SME Clusters: Evidence from the Leather Products Cluster in Florence

Clusters that emerged in the past have changed during the latest decades, so that today the research challenge in economic geography is on their evolution over time. The aim of this paper is to update the evolutionary path of SME Italian clusters, which faced the economic crisis are undergoing a process of decline in the number of firms. Furthermore, changes in the techno-economic landscape and in the competitive environment have generated new challenges. In this context, some leading firms, able to connect local resources (and firms) to global networks, have emerged over time and today they act as a gatekeeper. The focus will be on local networks interacting with leading firms and particular attention will be devoted to the pattern of co-evolution and to the geographical dimension of this co-evolutionary process. To empirically verify if other firms in the cluster may co-evolve with the leading firm over time, a deep analysis of the Gucci network in the leather products cluster in Florence will be carried out.     

From town to town: how commercial travel connected manufacturers and markets during the industrial revolution

Positioning itself with regards to debates on the role of regionalization in the industrial revolution and on consumer and retailing revolutions, this paper uses the records of John Shaw, hardware factor of Wolverhampton, to examine how commercial travel created real spatial interactions across the industrializing economy of northern England in the period 1810–15. The paper argues that by integrating production and consumption, commercial travel played a vital part in advancing and reconciling the concurrent but apparently conflicting processes of economic regionalization and economic integration that characterized the period. Empirically, the paper contributes original data indicating concrete patterns of interaction across the space economy of early nineteenth century northern England in terms of both ‘routes’ and the intensity of interactions. The empirical material also allows for discussion of customer identities, the structure of geographically dispersed commodity chains and regional variations, if any, the nature of customer relationships.     

跨国公司地方嵌入新视角:基于地方劳工市场的研究进展与理论思考

20世纪90年代以来,跨国公司地方嵌入研究相对聚焦于资本密集型或技术密集型企业,而需要大量非熟练工人的劳动密集型跨国企业并未引起足够关注,建立在产业联系、技术外溢、社会网络等核心概念基础上的跨国公司地方嵌入分析框架很显然不能很好地解释劳动密集型跨国公司地方嵌入的理论与实践问题。在劳工地理学、新经济地理学等学科背景下,基于全球生产网络、关系嵌入、空间修复等核心概念,研究分别从劳工能动性的空间尺度、跨国公司地方嵌入的劳工要素、劳工管控对跨国公司的地方嵌入、区域劳工景观的空间修复等视角出发,系统梳理相关研究进展并提出未来主要研究议题,包括如何识别劳工供需因素对跨国公司地方嵌入的影响机制,如何剖析特殊劳工管控体制下劳工空间实践与能动性的关系,如何刻画跨国公司地方嵌入对区域劳工经济地理景观的影响,如何总结跨国公司地方嵌入与区域发展的战略耦合模式等。     

Networking and learning for tourism innovation: evidence from the Western Cape

ABSTRACT

This paper examines the nature of networking and learning by tourism firms in relation to accessing knowledge for innovation. In particular, the nature of tourism learning and networking, geography of networking linkages, and systemic characteristics of relationships between tourism firms, government agencies, higher education institutions, and other organisations in the Western Cape tourism system are examined. The analysis draws on 182 tourism firm, tourism system, and contextual interviews. This investigation demonstrates that even though tourism firms mostly use internal resources for innovation, external, non-local knowledge is significant for enhancing novel innovation. It is disclosed that whilst local network linkages are dense, loose, and of importance for business and marketing purposes, extra-regional network relationships are imperative for learning in relation to innovation. As further observed, network linkages between local and regional actors for supporting tourism innovation in the Western Cape are generally weak which points to the underdevelopment of local and regional innovation networks or systems. The paper provides planning recommendations for enhancing the competitiveness of tourism firms towards fostering development and growth in the regional tourism economy. Specifically, support for stimulating learning networks as well as strengthening systemic relationships in the Western Cape tourism system are recommended. It is underscored that strategic relationships with non-local partners need to be nurtured towards fostering tourism innovation and enhancing regional competitiveness.