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Organisational and spatial determinants of the multi-unit firm: Evidence from the French industry

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  • Danielle GALLIANO (LEREPS–GRES & INRA–ESR)
  • Olivier SOULIE (LEREPS-GRES & INRA–ESR)

Abstract

This article aims to analyse the factors that determine the existence of multi-unit firms and that influence the intensity of their organisational fragmentation. More precisely, we identify the firm’s internal characteristics and their spatial, sectoral and competitive environments that are conducive (or not) to the adoption of a multi-unit form of organisation. We test these hypotheses by using a two stage Heckman type model (1979). This model allows us to take into account the determinants of the organisational choice in the intensity of multi-location. Beyond the general model, we seek to highlight that the logics differ according to the location of the firm’s head office (urban, peri-urban or rural) and according to the firm’s industrial profile (horizontal or vertical). These empirical models are based on individual data on all French industrial firms, derived from the annual survey on firms and their establishments conducted by the French National Institute of Statistics (INSEE). One of our main results is to reveal the role of this complex interaction between industrial and spatial dynamics in organisational choices.

Suggested Citation

  • Danielle GALLIANO (LEREPS–GRES & INRA–ESR) & Olivier SOULIE (LEREPS-GRES & INRA–ESR), 2007. "Organisational and spatial determinants of the multi-unit firm: Evidence from the French industry," Cahiers du GRES (2002-2009) 2007-17, Groupement de Recherches Economiques et Sociales.
    • Handle: RePEc:grs:wpegrs:2007-17
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    Cited by:

    1. Raymond Mataloni, Jr., 2011. "The Productivity Advantage and Global Scope of U.S. Multinational Firms," Working Papers 11-23, Center for Economic Studies, U.S. Census Bureau.
    2. Puig, Francisco & Debón, Ana & Cantarero, Santiago & Marques, Helena, 2023. "Location, profitability, and international trade liberalization in European textile-clothing firms," Economic Modelling, Elsevier, vol. 129(C).
    3. François Deltour & Sébastien Le Gall & Virginie Lethiais, 2017. "Innovating not Only in Cities: Evidence from SMEs," Post-Print hal-01758281, HAL.
    4. Raymond Mattaloni Jr., 2011. "The Productivity Advantage and Global Scope of U.S. Multinational Firms," BEA Working Papers 0070, Bureau of Economic Analysis.

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    More about this item

    Keywords

    Multi-unit firm; Firm location; Organisation of the firm; French industry;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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