Concentration and Dispersion in Global Industries: Remote Electronic Access and the Location of Economic Activities

Abstract

We explore how the possibility of remote electronic access to markets, resources and knowledge, enabled by the new information and communication technologies (ICTs), might change the motivations of firms to locate activities internationally, and in turn affect worldwide dispersion and concentration in an industry. Preliminary results from an exploratory analysis of the spatial distribution of firms in financial services suggest that the introduction of a business-to-business (B2B) trading network increases the global market participation of firms from peripheral countries, but does not appear to reduce the importance of locational clusters. A set of propositions is derived that provide guidance for more detailed research on the impact of ICTs on the strategy and structure of global industries.

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*Srilata Zaheer is at the Carlson School of Management, University of Minnesota. Her research interests include issues of legitimacy, location and learning in MNCs.

**Shalini Manrakhan is a doctoral student at the Carlson School of Management. Her research interests include the international competitiveness of emerging market firms.

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Zaheer, S., Manrakhan, S. Concentration and Dispersion in Global Industries: Remote Electronic Access and the Location of Economic Activities. J Int Bus Stud 32, 667–686 (2001). https://doi.org/10.1057/palgrave.jibs.8490989

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