CHANGING PATTERNS OF CORPORATE HEADQUARTER INFLUENCE, 1974-89

Research on the changing geography of metropolitan corporate headquarters (CH) influence has pointed to a decrease in importance for national centers and an increase in the importance of regional centers throughout the country. Theoretical explanations of this change have posited a linear evolutionary sequence from spatial and hierarchical concentration to dispersal. In this paper, the nature of change in metropolitan CH influence between 1974 and 1989 is examined, with a focus on three aspects of this process. First, the detailed sequence of dispersal within types of metropolitan region is explored. Second, the issue of how metropolitan CH influence changes over space is examined. Third, the impact of the recent restructuring of the US economy on metropolitan corporate influence is investigated. The results suggest that the linear evolutionary sequence model needs some modification. The major proportional shifts in CH influence are from New York to a select set of diversified regional centers that may be emerging as national centers in their own right. Dispersion of CH influence is not simply a matter of shifts from one level of the hierarchy to another, rather it is the outcome of a continuous struggle by existing and new corporations in metropolises among and within all levels of the hierarchy to capture new growth opportunities as older opportunities decline. Finally, the impact of restructuring was twofold. Among some metropolitan regions dominated by sectors that declined during the period 1974-89 the consequences were a dramatic decrease in influence. The CHs of the new growth sectors were concentrated among national centers and hence contributed to increased influence at the apex of the hierarchy.