Optimum Producer-Service Location

1992 ◽  
Vol 24 (4) ◽  
pp. 467-479 ◽  
Author(s):  
B Lentnek ◽  
A MacPherson ◽  
D Phillips

Presented in this paper is a formal economic model that identifies the optimal intraurban location for a producer-service vendor that caters to the technical needs of spatially dispersed clients in the manufacturing sector. Two major components are incorporated into the model. The first of these describes the oft-cited externalization process among industrial firms, where in-house service provision is selectively abandoned in favor of out-sourcing. The second component describes a vendor location process based on profit maximization, where buyers and sellers are optimally located relative to one another. Normative modeling propositions are then compared with current empirical streams in the literature on producer-service location, the role of manufacturing demand, and the process of selective vertical disintegration among industrial firms. The paper is concluded with a brief research agenda for modeling the intraurban locational behavior of specialist firms in the producer services.

1987 ◽  
Vol 19 (5) ◽  
pp. 687-700 ◽  
Author(s):  
K O'Connor

Services that link buyer and seller across nations and continents have long been a part of city and port development, but have not attracted much research interest, perhaps because they remain (like their statistical record) ‘invisible’. Technical and structural change in the organisation of shipping, reflected largely in containerisation, have changed the context for these services and they have responded in a variety of ways. Data in this paper trace the location of a selection of these services in the USA and Australia, indicating a separation between services and negotiations on aspects of trade services, and new patterns of physical activity in trade. It is suggested that this separation may be facilitated by the standardisation that has come with containerisation, the importance of intercorporate linkages, the role of official markets, and the application of modern communication technology. These aspects account for the clustering of services in large cities and their separation from day-to-day trade business, and could provide insights for producer-service location in general. The paper indicates the need for survey work to test these ideas.


1998 ◽  
Vol 30 (1) ◽  
pp. 129-141 ◽  
Author(s):  
D Phillips ◽  
A D MacPherson ◽  
B Lentnek

In this paper we present a theory of optimum size and number of clients for a producer service firm performing maintenance and repair services for clients in the manufacturing sector. The theory holds that scale economies vary directly with the level of contact requirements for service delivery. This is illustrated by a model of a monopoly repair specialist in which frequency of breakdown (and therefore client demand for service) is stochastic. Comparative statics are used to draw testable hypotheses from the model which, if extended to a multisite case, may serve as a portion of a general model of producer service location.


Urban Studies ◽  
2017 ◽  
Vol 54 (16) ◽  
pp. 3639-3654 ◽  
Author(s):  
Fenghua Pan ◽  
Wenkai Bi ◽  
James Lenzer ◽  
Simon Zhao

Literature on how cities get connected through networks of firms has been increasing in recent years. In particular, advanced producer service (APS) firms are being widely used to build intra-firm linkages to establish urban networks. In contrast to studies applying intra-firm networks, this study proposes an alternative strategy to build urban networks based on inter-firm service provision relationships during the process of initial public offering (IPO) in which APS firms – including securities, law firms and accounting firms – provide professional services for firms aiming to be publicly listed. Based on service provision connections between APS firms and their clients, this study provides fresh insights on urban networks in China. The results show that Beijing, Shenzhen and Shanghai strategically hold dominant positions within Chinese urban networks and they are the lead command and financial centres within the country. Particularly, Beijing has overwhelmingly more influence over other cities. The urban networks are embedded in China’s unique institutional context where market and state power together have shaped these networks. Since the urban network is built up based on real economic linkages, the findings might have further implications for policy-making and could contribute to ongoing debates regarding financial centres in China. It implies that connections between firms based on real economic activities can be an effective way to construct urban networks in future research.


Author(s):  
Joachim Wagner ◽  
John P. Weche Gelübcke

SummaryThis is the first study of the link between internationalization and firm survival during the 2008/2009 crisis in Germany, a country which was hit relatively lightly compared to other countries. Moreover, it is the first study which looks at the role of importing, exporting and FDI simultaneously in the context of a global economic recession. We use a tailor-made representative dataset that covers all enterprises from the manufacturing sector with at least 20 employees. Our most striking result is to demonstrate the disadvantage of exporting for the chances of survival of a firm during the crisis in western Germany. Importing instead reveals a positive correlation with survival and firms that both export and import do not show a different exit risk relative to non-traders. A plausible explanation is that in a global recession, deteriorating markets abroad cause demand losses for exporters and improved conditions on factor markets which result in an advantage for firms sourcing from factor markets abroad. Two-way traders do not show a link with exit risk, supporting the idea that they were able to outweigh their losses from exporting with their gains from importing, in what could be called an export-import hedge. Furthermore, we cannot support the hypothesis that foreign multinationals are more volatile during times of economic crisis.


Author(s):  
Maya Aresteria ◽  
Apip Apip ◽  
Deddy Sulestiyono ◽  
Rosdayah Fairuz Hitsotsu

ABSTRACT -  Small and Medium Enterprise (SME) also known as UMKM is growing rapidly and has become one of many sectors to support the Indonesian Economy. The lack of ability to have NPWP has been a problem for UMKM and also people. The same problem also found at UMKM in Kangkung Village. The purpose of this community service is to train the entrepreneurs about preparing and register oneself to get a NPWP. This community service is consist of four steps which started by survey of service location then collecting data on village potentials and the role of the community , Preparation for the implementation of assistance and training and training activities. After participating in the training, the entrepreneurs become more understanding and can register NPWP. This community service is expected to be held continuously for the UMKM in Kangkung village Keywords: Small and Medium Enterprises, UMKM, NPWP


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