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48 Cards in this Set
- Front
- Back
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What does Scott (1992) define an industrial district as?
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A localised network of producers
Bound together in a social division of labour In necessary association with a local labour market |
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How does Markusen say he classifies his industrial districts?
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Size
Connections Embeddedness |
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When was Marshallian's district first discussed?
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1890
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How does Marshall say advantages of large scale production can be attained?
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By aggregation of large numbers of small masters into one district
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How is business structured in a Marshallian district?
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Compromised of small, locally owned firms that make investment decisions locally
Linkages/ cooperation with the outside is minimal |
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What is the labour market like in a Marshallian district?
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Internal to the district and highly flexible
Individuals move from firm to firm Owners and workers live in the same community |
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What does Marshall emphasise in his district?
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The importance of person to person information exchanges to the diffusion of ideas and innovations
Sunley (1992) |
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What is the benefit of Marshallian districts?
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Small producers benefit from local-external economies of production
Resulting from the social division of labour within the local community Sforzi (2009) |
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What does a Marshallian district encompass?
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A relatively specialised set of services tailored to the unique products of the district
Local financial institutions are willing to take long term risks- inside information |
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What type of industrial district does the Japanese cutlery industry fall into?
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Marshallian
Tsubame, Japan Localised industries and predominantly SMEs- some larger core firms- Storper and Harrison (1991) Governance system |
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What are the characteristics of the Hub and Spoke industrial district?
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A number of key firms act as anchors/ hubs to the regional economy
Suppliers and related activities spread around them |
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What is an example of a hub and spoke industrial district?
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Seattle building of Boeing aircraft
Buy from local and external suppliers Sell chiefly to external customers (military) |
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What kind of relationships do local firms have in hub and spoke districts?
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Subordinate
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What agglomerates as a result of anchor firms in hub and spoke districts?
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Skilled labour and business services
Create diversified development process New firms form few connections to hub firms, other than benefiting from the urbanisation and agglomeration communities |
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What dominates in hub and spoke industrial districts?
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Vertically integrated firms, in one or mor sector
Surrounded by smaller, less powerful suppliers |
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Who's terms in cooperation on in the hub and spoke district?
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Hub firm
Cooperation: upgrade supplier quality, timeliness and inventory control |
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Where does workers loyalty lie in the hub and spoke district?
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to the core firms, then district, then small firms
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What does the market power in hub and spoke districts result in?
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high returns to capital
Sharing returns with the workforce- higher wages |
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What defines a satellite platform district?
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No small firms
Congregation of branch facilities of externally based multi-plant firms Plant firms- away from major conurbations to stimulate regional development Lower the cost of businesses for high ubran wages, rents and taxes |
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What kind of personnell exchanges are common in the satellite plant industrial district?
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Exchanges between branch operations and HQ of firms
Not locally with other branch facilities |
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Explain Storper and Harrison's (1991) Governance system.
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All ring and no core: Marshallian district
All core and no ring: Satellite district Variety and external linkages |
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Explain Patchell's (1996) governance system of contrasts.
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Conflict and Competition
Control and Repression Collusion and Cooperation |
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What is the emerging Industrial District?
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State anchored IDs
Locate near universities and hospitals |
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Where is the competition coming from in the Hollywood industrial district?
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LA (Culver City)
California (San Francisco) USA (Chicago and NY International (UK, France and Vancouver) |
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Where is cooperation represented in the Hollywood ID?
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Writers strike
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Where is the control in the Hollywood ID?
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Major firms: fiannce, organisation and distribution
Independent firms are contracted by majors Production process contracted out to smaller independent firms |
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Is Hollywood completely functional?
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Less functional and more symbolic
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Where is the competition in the Sheffield Cutlery Industry?
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Network of contract and subcontracts, companies specialise
Rivalry for niche market Hayter and Patchell (1993) |
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Where is the cooperation in the Sheffield Cutlery Industry?
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Specialism and social division of labour means a need for cooperation
Hayter and Patchell (1993) |
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What kind of district is the Sheffield Cutlery Industry?
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Marshallian
Cooperation; trade; intra-district technical expertise; long term commitments |
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What are the advantages of IDs?
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Localisation (transport)
Urbanisation (cheap labour and large supply) |
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What is the second industrial divide?
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The age of flexible specialisation
Piore and Sabel (1984) |
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What two ways can manufacturing could take place?
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Under one roof
Clusters of small enterprises who specialise Marshall (1919) |
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Who spoke of a dual economy?
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Averitt (1968)
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What do planning systems firms have?
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Significant market and political power
Form oligopolies |
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What is the problem with market system firms?
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They are restrictive and subordinate
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What is a vertically disintegrated production system?
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Small firms specialising in different stages of the production process and interacting
(Sforzi 1989) |
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What is a social division of labour?
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small firms have specialised functions which produce the final product demand
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What do Popp and Wilson (2009) define an ID as?
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Aggregation of small firms
Local, flexible and entrepreneurial |
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What does Taylor and Thrift (2004) say vertical disintegration allows?
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Competition (reduces cost)
Shared information Internal efficiency |
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What does subcontracting allow?
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Capacity
Cost saving Speciality |
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What does Hayter (1997) say entrepreneurialism allows?
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Focus on search for competitive advantage,
Close relationship between initiative an reward Flexibility of small firm |
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What benefits did the Toyota Kanban system bring?
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Quality monitored daily/ monthly (defects cut off quickly)
Contract-less system: short term, re-negotiate for competition and cost |
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What did autonamation allow?
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JIT (adjust to demand)
Uninterrupted flow Machine inspection (not worker, spot defects) |
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What challenges did vertical disintegration present?
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Governance challenges
Coordination, policing, quality control, innovation |
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What was the problem with an increased number of specialist firms?
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Other specialist firms were left out or made redundant
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What three types of trust did vertical disintegration need?
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Competency
Contractual Goodwill trust |
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Which case study show the negative side of vertical disintegration?
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Hollywood
Unions are important- writers strike |
