The Spatial Patterns of Networks, Hierarchies and Subsidiaries

Abstract

This article reviews evidence and arguments linking the networking behaviour of firms with geographic distance, before examining the spatial relationships of electronics firms in the three major electronics centres in Spain. The focus is on the spatial pattern and extent of different types of inter-firm relations. Based on the analysis of 184 surveyed establishments, displaying different ownership and organization characteristics, the results show that while regional linkages are important, significant extra-regional linkages are also maintained by firms in regional clusters. The spatial extent of linkages depends on the mode of relations; arm's length, network and hierarchy relations show different spatial patterns, as do different types of cooperation. The importance of extra-regional linkages also varies with firm- and plant-specific characteristics. Extra-regional linkages are more common among larger and more R&D-intensive firms, firms with greater presence in the rest of the country and firms with more experience of cooperation and more stable relationships.