The Corporate firm in a changing world economy - M. de Smidt|Egbert Wever

The economic environment in which major companies operate is subject to rapid and important change. Fluctuations in exchange rates, the increased pace of technological change and increases in the level of international competition all impact on the strategic thinking of today's firms and make the climate in which business is conducted increasingly unpredictable. Many of these factors have spatial implications. The rise of multinational enterprises means that subsidiaries might be located at great distances from their parent company; the adaptation of "just-in-time" production techniques and the increased use of sub-contracting means that firms in certain industries are increasingly likely to locate in close proximity to one another. Alternatively the need for a highly skilled workforce in some industries means that location is determined by the availability of a labour force, hence the growth of science parks and silicon valleys.;This book examines these and other phenomena with reference to case studies of major multinational companies, including IBM, Philips, Nissan and Volvo. It assesses how the major theories which explain the response of companies to changes on this scale are borne out by the experience of individual firms. It becomes apparent that within major companies change is the product of an interaction between external and internal factors. Firms might decide that the best response to volatile trading conditions and shortening product life cycles is to become more responsive by giving more autonomy to line managers. However this in itself can be a force for change.