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Business Segmentation and Location Revisited: Innovation and the Terra Incognita of Large Firms

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  • Roger Hayter
  • Jerry Patchell
  • Kevin Rees

Abstract

HAYTER R., PATCHELL J. and REES K. (1999) Business segmentation and location revisited: innovation and the terra incognita of large firms, Reg. Studies 33, 425-442. This paper revisits ideas about the relationships between business segmentation and location by articulating the characteristics and roles of large firms (LFs). The well known dual model of business segmentation, with its emphasis on the polar cases of small firms and giant multinationals, portrays a static, exploitative picture of these relationships and does not relate well to the complexity of industrial organization or the size distribution of firms. Explicit recognition of LFs, however, draws attention to the processes generating segmentation and to the permeability of segment boundaries in which bargaining and learning are interdependent relationships. A triad model of business segmentation, based on Porter's ideas of competitive strategy, is outlined which reveals the vital role of LFs as innovators. The model is illustrated heuristically with respect to the Japanese auto production system. HAYTER R., PATCHELL J. et REES K. (1999) La segmentation et la localisation du commerce vues sous un nouveau jour: l'innovation et le terrain inconnu des grandes entreprises, Reg. Studies 33, 425-442. A partir d'une presentation des caracteristiques et des roles des grandes entreprises, cet article cherche a voir sous un nouveau jour les idees sur les liens entre la segmentation et la localisation du commerce. Le modele dual de la segmentation du commerce qui est tres connu et qui met l'accent sur les poles opposees, a savoir les petites entreprises et les mastodontes multinationaux, presente une image fixe et fausse de ces liens et ne se rapporte etroitement ni a la complexite de l'organisation industrielle, ni a la distribution des entreprises suivant leur taille. Cependant, la reconnaissance explicite des grandes entreprises attire l'attention et sur les processus qui incitent a la segmentation et sur la permeabilite des limites des secteurs ou la concertation et l'apprentissage constituent des liens interdependants. On esquisse un modele triade de la segmentation du commerce, d'apres les idees de Porter sur la strategie competitive, et qui laisse voir le role indispensable des grandes entreprises en tant qu'innovateurs. Le modele se voit presenter de facon heuristique par rapport au mode de production japonais des automobiles. HAYTER R., PATCHELL J. und REES K. (1999) Ruckkehr zu Betriebsuntergliederung und Standort: Innovation und die Terra Incognita grosser Firmen, Reg. Studies 33, 425-442. Dieser Aufsatz wendet sich wieder Gedankengangen zu, die sich mit den Beziehungen zwischen Betriebsuntergliederung und Standort beschaftigen, indem sie charakteristische Merkmale und Rollen grosser Firmen (large firms= LF) herausstellt. Das wohlbekannte Doppelmodell der Betriebsuntergliederung mit seiner Betonung der polaren Gegensatze kleiner Firmen und gigantischer multinationaler Konzerne stellt diese Beziehungen als statisch und authentisch dar, und wird weder der Komplexitat industrieller Organisation noch der Grossenverteilung der Firmen gerecht. Ausdruckliche Anerkennung der Grossfirmen lenkt jedoch die Aufmerksamkeit auf die Vorgange, die Untergliederung bewirken, und auf die Durchlassigkeit der Bereichsgrenzen, in denen Verhandeln und Lernen von einander abhangige Beziehungen sind. Es wird ein Dreifachmodell der Betriebsuntergliederung umrissen, das sich auf Porters Vorstellungen wettbewerbsfahiger Strategien stutzt; es zeigt die ausschlaggebende Rolle der Grossfirmen als Innovatoren auf. Das Modell wird in bezug auf das japanische System der Kraftwagenproduktion heuristisch veranschaulicht.

Suggested Citation

  • Roger Hayter & Jerry Patchell & Kevin Rees, 1999. "Business Segmentation and Location Revisited: Innovation and the Terra Incognita of Large Firms," Regional Studies, Taylor & Francis Journals, vol. 33(5), pages 425-442.
  • Handle: RePEc:taf:regstd:v:33:y:1999:i:5:p:425-442
    DOI: 10.1080/00343409950081275
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    References listed on IDEAS

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    6. J Patchell, 1993. "From Production Systems to Learning Systems: Lessons from Japan," Environment and Planning A, , vol. 25(6), pages 797-815, June.
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    1. Chia‐Wen Lee & Roger Hayter & David W. Edgington, 2010. "Large And Latecomer Firms: The Taiwan Semiconductor Manufacturing Company And Taiwan'S Electronics Industry," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 101(2), pages 177-198, April.

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