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GŁnter Krumme (University of Hawaii) - (Corporation and Region: A Contribution to a Geography of Enterprise [Abstract])


For the explanation of complex spatial behavior of industrial firms, traditional locational concepts still represent a useful but insufficient basis. With increasing size and regional dispersion of a corporation's activities, factor s which are internal to the firm play an increasing role in locational decision-making. The explanation of these internal factors rests at least partly on concepts from other fields such as business economics.

The paper limits its scope to the study of a rapidly growing multi-regional enterprise and its changing relationships to a specific metropolitan region. The prevalent exogenous force was the changing situation on the labor market. The severe overemployment following 1958 brought about locational shifts within the concern's regional system, differentiated development between the concern and other firms, and, due to the relative importance of the concern in the specific region, differentiated regional development.

It was found that the dominant cause for this differentiation was the relative greater ability of the corporation to disperse or concentrate different functions of the firm. Thus, it could break the impact of the regionally differentiated labor shortage by adjusting its interregional functional organization. In addition, mere size of its operations enabled the firm to secure relatively large shares of the bottleneck-factor labor.

The primary objective of the underlying investigation was to show the significance of micro-economic aspects for regional analysis and -- ultimately -- regional planning. This significance is particularly evident in those cases where the development of a region depends to a relatively large extent on the spatial decision-making of one multi-regional corporation.


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