The Producer Service Complex of Edmonton: The Role and Organization of Producer Services Firms in a Peripheral City

1993 ◽  
Vol 25 (6) ◽  
pp. 761-777 ◽  
Author(s):  
W Z Michalak ◽  
K J Fairbairn

In this paper the authors examine the subcontracting behaviour of producer service firms in a peripheral metropolitan city. The objective of this empirical investigation is to uncover spatial and organizational linkages of producer services that have developed in response to changes in the industrial organization of a modern capitalist production system. The focus is on three types of linkages, namely subcontracting, inputs of producer services, and inputs of goods and final services. The data collected through a survey of producer services in Edmonton reveal that subcontracting rather than internalization is the main mode of production. Therefore the producer service sector can play an important role as a supplier of indigenous higher-order services and innovations, inducing better productivity rates in other industrial sectors including resource-oriented local producers.

1987 ◽  
Vol 19 (5) ◽  
pp. 597-611 ◽  
Author(s):  
W J Coffey ◽  
M Polèse

The increasing importance of the service sector in modern economies necessitates the elaboration of a body of location theory applicable to service activities. An attempt is made in this paper to present elements of such a locational framework, with specific reference to producer services. Patterns of trade and of location are complementary aspects of the same problem. Thus three distinct channels through which producer services are traded are examined: direct and intrafirm exports by producer-service firms, and intrafirm exports by manufacturing firms. The last two ‘invisible’ channels, in particular, have important implications for the locational decision. A model for the locational analysis of producer-service establishments is then posited. The producer-service location problem may be conceptualized essentially as one of a trade-off between market-pull factors, specialized labour needs, and urban externalities. Last, the location of producer-service activities within the Canadian urban system is examined. These activities are found to be highly concentrated, but not in a simple hierarchical pattern, suggesting the importance of both specialized labour pools and urban externalities.


1997 ◽  
Vol 29 (5) ◽  
pp. 887-912 ◽  
Author(s):  
W B Beyers ◽  
D P Lindahl

Though it is widely recognized that the producer services are among the fastest growing industries in advanced economies, there is little research documenting development experiences of establishments within these industries. In this paper we address this topic by illustrating types of strategic behaviors exhibited by producer service firms and the effectiveness of these behaviors, developing a taxonomy of firm segments, and relating types of strategic behavior to this taxonomy. The paper is based on results from 444 in-depth interviews. Key variables addressed in the analysis are drawn from the industrial sociology and business strategy literature and include organizational structure, age, dynamics of client and geographic markets, and changes in services supplied.


1997 ◽  
Vol 29 (7) ◽  
pp. 1153-1174 ◽  
Author(s):  
S Bagchi-Sen ◽  
J Sen

In this paper the authors review recent research on the characteristics and operations of service multinationals. To provide an understanding of the determinants of internationalization, entry modes, and strategies of product and market diversification, examples are taken from producer service firms with specific emphasis upon accounting and advertising services. The competitive advantage of service multinationals in the United States and Western Europe is at the core of most discussion; however, the competitive strategies of the Japanese advertising firms vis-à-vis their Western counterparts are discussed to highlight interorganizational differences. This paper is organized into five sections: the definition of services and the determinants of growth in producer services in the industrially advanced nations; theoretical explanations of international investments in services; empirical research on the determinants of internationalization, entry mode, and business strategies of service firms; industry-specific examples of competitiveness in accounting and advertising; and implications for future research.


2021 ◽  
Vol 2021 ◽  
pp. 1-13
Author(s):  
Wei Chen ◽  
Yinzhong Chen ◽  
Yifei Hao ◽  
Sili Chen

This paper brings producer services “bringing in” and “going out” into the same analytical framework and explains the influence mechanism of producer services opening on the development of servitization from three aspects of import trade, FDI, and OFDI. On this basis, using the latest input-output data of WIOD, this paper constructs some indicators to measure the openness of producer services such as import trade penetration, FDI penetration, and OFDI penetration and then empirically tests the impact of producer services openness on the development of servitization in China. The results show that the openness of producer services has a significant positive impact on the development of China’s servitization. In addition, the robustness analysis based on variable substitution and different estimation methods shows that the conclusions are robust. The heterogeneity test shows that the impact of producer services openness on servitization has heterogeneity. The specific performance is as follows: there is different impact of producer service sector openness on the development of servitization; the impact of producer service openness on the development of servitization with different factor intensities is also different; and there is also different impact of producer service sector openness on the development of servitization with different factor intensities. The policy implications of these research conclusions are as follows: firstly, taking co-construction of the “Belt and Road” as a chance to promote the new open pattern; secondly, focusing on expanding the openness of high-end producer services; and thirdly, taking innovation driven development as the guide to increase R&D investment of producer services.


2008 ◽  
Vol 40 (2) ◽  
pp. 446-463 ◽  
Author(s):  
Rolee Aranya

This paper is a detailed study of the location history of eight software and information technology (IT) enabled service firms, with varying attributes such as age of firm, type of work undertaken, and ownership sited in the southern Indian city of Bangalore. These cases are used to relate urban restructuring occurring in the city of Bangalore to the strategic shifting of location of firms within the urban fabric. While IT firms cannot be strictly classified as producer services, it is possible to contextualise their location decisions in terms of other office-based economic activities, such as producer services. Findings from the case studies are examined in relation to urban growth theories of the 1980s and 90s, which were related to an expansion of the service sector in advanced economies. The literature discussed in this paper explains the role of growth in producer services in suburbanisation of office space and the development of ‘edge cities’ and ‘suburban downtowns’ as alternatives to and in competition with traditional city centres. Studies of office location and contact patterns indicate the retention of management functions in the CBDs, with a consequent relocation of routine office operations to these suburban office spaces. The findings from the firms studied in Bangalore indicate a reverse pattern of peripheralisation of control functions and a retention of routine production functions in the core urban areas. The limited need for face-to-face contacts with actors in the local urban economy and the export-related output of this offshore industry are contributors to this apparent reversal of location dynamics. The paper briefly concludes with directions for future research on such specialised service production activity that is often being located in cities of developing countries, and its impact on the urban structure of these cities.


1989 ◽  
Vol 21 (1) ◽  
pp. 65-79 ◽  
Author(s):  
J W Harrington ◽  
J R Lombard

An overview is provided of producer-service activity (intermediate services, sold primarily to businesses) in metropolitan Buffalo (NY) from 1970 to 1986. This period brought drastic structural changes to the region's economy, such that nonmanufacturing activity in general took a far greater share of employment and output than before. After a conceptual and empirical background is given to the study of producer services, the changes in sectoral employment structure in western New York State is presented, including producer-service employment on an industry-by-industry basis. Then, the intrametropolitan location preferences of producer-service establishments are examined. Finally, questions are addressed regarding the role that these industries play in bringing income into the region.


2018 ◽  
Vol 42 (2) ◽  
pp. 207-229 ◽  
Author(s):  
Zachary P. Neal ◽  
Ben Derudder ◽  
Peter J. Taylor

The literature on firm location selection allows us to retrospectively explain why firms did locate in particular places. However, it remains challenging to prospectively predict where they will locate. In this article, we propose a simple conceptual model of firm location decisions, then operationalize it using the ordinal stochastic degree sequence model (oSDSM). We use this model to predict whether 104 advanced producer service firms will expand, contract, or maintain their presence in each of 525 cities, and find that these predictions are accurate in more than 86 percent of cases. We conclude with suggestions for further refinement of this model.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Randula L. Hettiarachchi ◽  
Pisut Koomsap ◽  
Panarpa Ardneam

PurposeAn inherent problem on risk priority number (RPN) value duplication of traditional failure modes and effect analysis (FMEA) also exists in two customer-oriented FMEAs. One has no unique value, and another has 1% unique values out of 4,000 possible values. The RPN value duplication has motivated the development of a new customer-oriented FMEA presented in this paper to achieve practically all 4,000 unique values and delivering reliable prioritization.Design/methodology/approachThe drastic improvement is the result of power-law and VlseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR). By having all three risk factors in a power-law form, all unique values can be obtained, and by applying VIKOR to these power-law terms, the prioritization is more practical and reliable.FindingsThe proposed VIKOR power law-based customer-oriented FMEA can achieve practically all 4,000 unique values and is tested with two case studies. The results are more logical than the results from the other two customer-oriented FMEAs.Research limitations/implicationsThe evaluation has been done on two case studies for the service sector. Therefore, additional case studies in other industrial sectors will be required to confirm the effectiveness of this new customer-oriented RPN calculation.Originality/valueAchieving all 1,000 unique values could only be done by having experts tabulate all possible combinations for the traditional FMEA. Therefore, achieving all 4,000 unique values will be much more challenging. A customer-oriented FMEA has been developed to achieve practically all 4,000 unique risk priority numbers, and that the prioritization is more practical and reliable. Furthermore, it has a connection to the traditional FMEA, which helps explain the traditional one from a broader perspective.


2018 ◽  
Vol 15 (4) ◽  
pp. 514-535
Author(s):  
Huei-Wen Pao ◽  
Cheng-Yu Lee ◽  
Pi-Hui Chung ◽  
Hsueh-Liang Wu

Purpose The industry-wide adoption of a novel practice is often considered to be an institutional change. Although research on institutionalization has been accumulating, how and why embedded actors in the field become motivated to embrace change that remains sidelined. Viewing the introduction of a new human resource management practice, the recruitment of non-compulsory certified manpower, which is still in its infancy in the service sector of Taiwan, as a new institution, the purpose of this paper is to identify the distinct motives behind firms’ hiring decisions, and examine the extent to which such hiring decisions are contingent on institutional conditions and firm attributes. Design/methodology/approach The data used to test the hypotheses were drawn from a survey on service firms in Taiwan in the second half of 2011. Hypotheses were examined through moderated hierarchical regression analyses in a sample of 254 Taiwanese service firms across major sectors. Findings Integrating the resource dependency and social contagion views, the study contends that resource scarcity drives, or legitimacy enables, service firms to deviate from traditional hiring patterns and instead adopt new preferences toward certified manpower. The study not only shows that social factors should be incorporated into the diffusion of a new HR recruitment practice in the service sector, which is traditionally based upon economic considerations, but also sheds light on the context-dependent nature of the process of institutional innovation. Originality/value This study is an attempt not only to test a dual-theoretical model on the extent to which a service firm’s new hiring pattern is influenced by two distinct types of motivation, but also to evidence how an institutional innovation, in terms of the regime of service manpower certification, takes root and spreads in the field. The managerially discretional account of the resource dependence theory needs to be reconciled with social contagion theory, which highlights the influence of collective actions and so provides a better understanding of the diffusion of new HR recruitment practices in the service industry.


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