The Use of ICT in TNCs: A Swedish Perspective on the Location of Corporate Functions

Abstract

LORENTZON S. (1995) The use of ICT in TNCS: a Swedish perspective on the location of corporate functions, Reg. Studies 29, 673–685. This paper focuses on the interplay between the use of information communication technology (ICT), the new organizational structures of transnational corporations (TNCs) and the competitive power of places/regions being integrated into these international production systems. The studies have been carried out by looking at the spatial patterns of communication and the requirements for communication in different corporate functions. The results are based on studies of the use of ICT at ABB HV Switchgear in Ludvika and at the engine plant of Volvo in Skovde. The studies show that work, independent of function, can be performed in places/regions located in the European periphery. But the studies also stress the importance of knowledge-based competence making co-location of production and R & D an essential competitive factor. Flows of information take place between nodes of compe...