Work

Spatial organization of firms: the decision to split production and administration

Year: 2007

Type: article

Abstract: A firm's production activities are often supported by nonproduction activities, such as administrative units including headquarters, which process information both within and between firms. Firms may physically separate such administrative units from their production activities and create stand‐alone central administrative offices (CAOs). However, activities in multiple locations may cause internal communication costs. What types of firms are more likely to separate such functions? If firms separate administration and production, where do they locate CAOs? This paper examines firms' spatial organization using microlevel data from the US Census Bureau.

Source: The RAND Journal of Economics

DOI: 10.1111/j.1756-2171.2007.tb00079.x

Authors: Kristin Aarland, James C. Davis, J. Vernon Henderson, Yukako Ono

Institutions: United States Census Bureau, Brown University, Federal Reserve Bank of Chicago

Language: English

Topic: Regional Economics and Spatial Analysis

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2057031014

FWCI: 7.718

Cites: 13

Cited by: 80

Related to: 10