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The interregional corporation and the region: a case study of Siemens' growth characteristics and response patterns in Munich, West Germany,

Tijdschrift voor Economische en Sociale Geografie, Vol. 61 (6), 1970, pp.318-33.

Abstract


The literature in economic geography increasingly emphasizes the significance of 'internal' factors in locational decision-making processes of large. corporations. This paper presents a case study of the rapidly growing multi-regional corporation (Siemens) and its changing relationships to a specific metropolitan region (Munich). Of particular interest was the severe 'over-employment' situation in Germany following 1958 which brought about locational shifts within the corporation's regional system, differentiated developments between Siemens and other corporations, and, due to the relative importance of Siemens in the Munich region, differentiated regional development.

It was found that the dominant cause for this differentiation was the ability of the multi-regional corporation to disperse and 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 investigation was to demonstrate the significance of organizational and decision-making aspects for regional analysis and, ultimately, regional planning.


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