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Beyond Ethnic Enclaves: Location Strategies of Chinese Producer Service Firms in Los Angeles

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  • Yu Zhou

Abstract

Ethnic enclaves are often not only the main residential areas for ethnic populations but also the prime locations for their businesses. As more and more ethnic enterprises locate outside such enclaves, the spatial pattern of ethnic business becomes more complex. To understand the spatial pattern of ethnic business, I argue that we need to go beyond treating “ethnic” as the only adjective. Drawing from the literature on industrial networks and territorial agglomeration, I examine the location patterns of ethnic producer services and their interfirm transaction networks. Chinese-owned firms in three types of producer services of Los Angeles County were selected: accounting, banking, and computer distribution. I collected information on networks and locations through surveys, interviews, and directories. This research found that location strategies are extremely important for ethnic entrepreneurs to exploit their market niches in all three sectors. While Chinese firms show markedly different spatial patterns from their non-Chinese counterparts, each type of producer service also differs from the others in spatial pattern. Accounting offices and bank branches concentrate in the Chinese central business district because of their Chinese-client-oriented network. A number of larger bank headquarters find downtown Los Angeles a favorable location because they are seeking international recognition and closer integration with mainstream financial institutions. Computer firms locate at the fringe of Chinese-concentrated areas and cluster with other Chinese computer distributors to participate in a product pool so that parts can be exchanged faster. I conclude that the spatial organization of ethnic business needs to be understood as the outcome of interaction between cultural and industrial identities of enterprises.ethnic enclaves,

Suggested Citation

  • Yu Zhou, 1998. "Beyond Ethnic Enclaves: Location Strategies of Chinese Producer Service Firms in Los Angeles," Economic Geography, Taylor & Francis Journals, vol. 74(3), pages 228-251, July.
  • Handle: RePEc:taf:recgxx:v:74:y:1998:i:3:p:228-251
    DOI: 10.1111/j.1944-8287.1998.tb00114.x
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    Cited by:

    1. Eric Fong & Jing Shen, 2011. "Explaining Ethnic Enclave, Ethnic Entrepreneurial and Employment Niches: A Case Study of Chinese in Canadian Immigrant Gateway Cities," Urban Studies, Urban Studies Journal Limited, vol. 48(8), pages 1605-1633, June.
    2. George C S Lin & Y H Dennis Wei, 2002. "China's Restless Urban Landscapes 1: New Challenges for Theoretical Reconstruction," Environment and Planning A, , vol. 34(9), pages 1535-1544, September.
    3. Kunlin Xu & Judy Drennan & Shane Mathews, 2019. "Immigrant entrepreneurs and their cross-cultural capabilities: A study of Chinese immigrant entrepreneurs in Australia," Journal of International Entrepreneurship, Springer, vol. 17(4), pages 520-557, December.
    4. Md Mizanur Rahman & Ali A. Hadi Alshawi & Mehedi Hasan, 2021. "Entrepreneurship in Ethnic Enterprises: The Making of New Immigrant Businesses in New York," Sustainability, MDPI, vol. 13(20), pages 1-19, October.
    5. Bas Karreman & Martijn J. Burger & Frank G. van Oort, 2017. "Location Choices of Chinese Multinationals in Europe: The Role of Overseas Communities," Economic Geography, Taylor & Francis Journals, vol. 93(2), pages 131-161, March.
    6. Rolee Aranya, 2008. "Location Theory in Reverse? Location for Global Production in the IT Industry of Bangalore," Environment and Planning A, , vol. 40(2), pages 446-463, February.
    7. Dirk Holtbrügge & Sue Claire Berning, 2018. "Market Entry Strategies and Performance of Chinese Firms in Germany: The Moderating Effect of Home Government Support," Management International Review, Springer, vol. 58(1), pages 147-170, February.

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