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Multisited Versus Compact Producer Service Firms: Insights from the French Case
Author(s) -
Léo PierreYves,
Philippe Jean
Publication year - 1991
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/j.1468-2257.1991.tb00566.x
Subject(s) - profitability index , service (business) , perspective (graphical) , business , industrial organization , survey data collection , marketing , computer science , mathematics , finance , statistics , artificial intelligence
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.