Multisited Versus Compact Producer Service Firms: Insights from the French Case

Abstract

Much of the literature on the location of producer services is concerned with their uneven spatial development across regions. Although this approach is useful, it proves to be limited, and a complementary analytical framework is required. This paper uses data from France's Annual Survey of Services to address producer service location from a novel perspective, that of the firm. A basic distinction is made between single site (compact) and multisite (network) producer service firms, and the natures of these two types are analyzed in terms of business strategies, location and performance. Further analyses are then based upon the distinctions between sales and servuction networks, and between specialized and diversified networks. Although significant for producing higher output levels, a network structure does not necessarily ensure a higher level of profitability.

The Suburbanization of Producer Service Employment

“…Research has shown the importance of major-client location for the location of producer service establishments within a metropolitan area (Coffey and Polese 1987;Illeris 1991;Lentnek et al1992;Leo and Philippe 1991;Monnoyer and Phlippe 1991). A key feature of metropolitan development in the late twentieth century has been employment suburbanization.…”

Globalising Kuala Lumpur and the Strategic Role of the Producer Services Sector

“…Given that a majority of the surveyed establishments are independent, single-site and locally owned, it is inevitable that an organisational set-up in the form of a 'network' is less frequently adopted. Arguably, not all establishments are capable of implementing a network strategy and not all activities lend themselves to it with the same ease (see also, Leo and Philippe, 1991). These establishments are essentially 'compact' in nature and the small establishment size (less than 25 employees) of the sample in Kuala Lumpur con rms this fact.…”

Producer Services Research in U.S. Regional Studies

“…Within the metropolitan area, however (i.e., within the commuting range of key personnel), location of service establishments depends on other characteristics. T h e location of major clients is widely cited as a key factor at this scale (Coffey and Polese 1987;Illeris 1991;Leo and Philippe 1991;Monnoyer and Philippe 1991;Lentnek et al 1992a, 199213). 0 huallachiin and Reid (1992) agreed that this explains the location of final demand services, such as for-profit health services and personal services.…”