Communications, innovation, and territory: the production network of Swift Meat Packing and the creation of a national US market

Abstract

This study is an historical and theoretical account of how market territory, configured from flows of production and trade, gets reshaped by the innovative behavior of business firms. The research for this study focuses on the production network developed in the late nineteenth century by the American firm of G.F. Swift & Company. The central theme of this case is how businesses reorganize their strategies, routines and structure as transport and communications technology changes, and how the innovations in production networks engineered by firms as part of this reorganization, become territorially embedded and reconfigure the space for economic activity. The production network pioneered by Swift from railroad and telegraph technology, created long-distance production and trade linkages in the economy that widened the boundaries of formerly-localized markets, and established the foundations of a more geographically-extended, nationally-oriented market space. As it widened market boundaries, however, the network of Swift concentrated economic activity in new places. The essay builds a theoretical framework of the route from the ‘communications revolution,’ to the process of innovation in the firm, to the production network, to territorial transformation. This framework reveals how the railroad and telegraph revolution enabled firms in the US to develop innovations in production networks on the basis of vertically-integrated, geographically-dispersed enterprises organized over a national market space. 2003 Elsevier Ltd. All rights reserved