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An Alternative Approach to the Calculation and Analysis of Connectivity in the World City Network

Author

Listed:
  • Stefan Hennemann

    (Department of Geography, Justus Liebig University Giessen, Senckenbergstraße 1, D-35390 Giessen, Germany)

  • Ben Derudder

    (Department of Geography, Ghent University, Krijgslaan 281/S8, B-9000 Ghent, Belgium)

Abstract

The purpose of this paper is to contribute to the empirical ‘world city network’ (WCN) literature by proposing an analytical framework that considers the significance of the positions of cities in the urban networks created by multinational corporations. To this end, we introduce an approach in which network centrality measures are interpreted against a randomized baseline model that retains the network's original degree distribution. Our framework is applied to Taylor's (2001 Geographical Analysis 33 181–194) specification of world cities being ‘interlocked’ through the office networks of globalized service firms. We thereby develop a new analytical take on Taylor's specification by using a primary-linkage algorithm that produces a one-mode directed graph based on the initial two-mode city and firm network data. We then randomize the resultant empirical network with a bootstrapping simulation approach, and compare the simulated parameters of this null model with our empirical network parameter, that is, betweenness centrality. We show the potential and limitations of our framework by discussing the position of cities such as Tokyo, Sydney, Melbourne, Almaty, and Karachi, which seem to hold more strategic and valuable positions than is suggested in Taylor's analyses. We discuss the wider significance of our approach by showing that the analytical strategy of interpreting measures against a randomized baseline model can also be adopted in other WCN approaches, including those using other data sources and network-related measures.

Suggested Citation

  • Stefan Hennemann & Ben Derudder, 2014. "An Alternative Approach to the Calculation and Analysis of Connectivity in the World City Network," Environment and Planning B, , vol. 41(3), pages 392-412, June.
  • Handle: RePEc:sae:envirb:v:41:y:2014:i:3:p:392-412
    DOI: 10.1068/b39108
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    References listed on IDEAS

    as
    1. Stefan Hennemann, 2012. "Evaluating the performance of geographical locations within scientific networks using an aggregation—randomization—re‐sampling approach (ARR)," Journal of the American Society for Information Science and Technology, Association for Information Science & Technology, vol. 63(12), pages 2393-2404, December.
    2. Guey-Huey Li & Chwo-Ming Yu & Dah-Hsian Seetoo, 2010. "Toward a Theory of Regional Organization," Management International Review, Springer, vol. 50(1), pages 5-33, February.
    3. Stefan Hennemann, 2012. "Evaluating the performance of geographical locations within scientific networks using an aggregation—randomization—re-sampling approach (ARR)," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 63(12), pages 2393-2404, December.
    4. Xingjian Liu & Ben Derudder & Yaolin Liu & Frank Witlox & Wei Shen, 2013. "A Stochastic Actor-Based Modelling of the Evolution of an Intercity Corporate Network," Environment and Planning A, , vol. 45(4), pages 947-966, April.
    5. Ronald Sean Wall & G. A. van der Knaap, 2011. "Sectoral Differentiation and Network Structure Within Contemporary Worldwide Corporate Networks," Economic Geography, Clark University, vol. 87(3), pages 267-308, July.
    6. Ronald Sean Wall & G. A. van der Knaap, 2011. "Sectoral Differentiation and Network Structure Within Contemporary Worldwide Corporate Networks," Economic Geography, Taylor & Francis Journals, vol. 87(3), pages 267-308, July.
    7. Klaus E. Meyer & Ram Mudambi & Rajneesh Narula, 2011. "Multinational Enterprises and Local Contexts: The Opportunities and Challenges of Multiple Embeddedness," Journal of Management Studies, Wiley Blackwell, vol. 48(2), pages 235-252, March.
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    Cited by:

    1. Evert Meijers & Martijn Burger & Michiel Meeteren & Zachary Neal & Ben Derudder, 2016. "Disentangling agglomeration and network externalities: A conceptual typology," Papers in Regional Science, Wiley Blackwell, vol. 95(1), pages 61-80, March.
    2. Owais A. Hussain & Faraz Zaidi & Céline Rozenblat, 2019. "Analyzing Diversity, Strength and Centrality of Cities Using Networks of Multinational Firms," Networks and Spatial Economics, Springer, vol. 19(3), pages 791-817, September.
    3. Vijay Pereira & Yama Temouri & Chris Jones & Ashish Malik, 2019. "Identity of Asian Multinational Corporations: influence of tax havens," Asian Business & Management, Palgrave Macmillan, vol. 18(5), pages 325-336, November.
    4. Kirsten Martinus & Thomas Sigler & Iacopo Iacopini & Ben Derudder, 2019. "The role of tax havens and offshore financial centers in Asia-Pacific networks: evidence from firm-subsidiary connections," Asian Business & Management, Palgrave Macmillan, vol. 18(5), pages 389-411, November.

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