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VAL, THE FUNCTIONAL AND SPATIAL ORGANIZA TION OF BUSINESSES
Author(s) -
HOEK REMKO VAN
Publication year - 1996
Publication title -
tijdschrift voor economische en sociale geografie
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.766
H-Index - 55
eISSN - 1467-9663
pISSN - 0040-747X
DOI - 10.1111/j.1467-9663.1998.tb01535.x
Subject(s) - decentralization , spatial organization , business , industrial organization , competition (biology) , value (mathematics) , spatial design , functional organization , vertical integration , economic geography , marketing , economics , computer science , market economy , ecology , machine learning , neuroscience , engineering design process , biology
In the business environment of global competition, the pendulum between centralization and decentralization of activities may swing differently. With value‐added logistics (VAL), activities previously relocated to global manufacturing plants in low‐cost countries may be shifted back to the Western world. The explanation behind these spatial evolutions requires an analysis of the link between the functional and the spatial organizations. In modern network organizations, companies try to achieve such capabilities as global efficiency and local responsiveness simultaneously. In two case studies, a theoretical framework will be used that integrates market and producer transactions and links the functional organization of value‐adding processes with the spatial organization. By studying past, present and projected organizations, the spatial impact of VAL, resulting from the integration or disintegration of activities, can be assessed. These studies show how the spatial organization is becoming of increasing importance to the success of a company's strategy.