THE CHANGING CORPORATE HEAD OFFICE AND ITS SPATIAL IMPLICATIONS

A substantial body of literature suggests that, during the 1980s, large firms reorganized in response to volatility in product markets and in a search for new competitive advantage. Using evidence from a survey of twenty large firm head offices in Great Britain, this paper examines the extent of large firm reorganization and its impact on regional economies. It shows that, associated with corporate restructuring, employment in large firm head offices has declined substantially, headquarters functions have been delegated to operating companies and contracting out has increased. In a review of the geographical consequences of these changes, which goes beyond the discussion of high-tech complexes and industrial districts, the paper suggests that reorganization is modifying rather than transforming patterns of spatial development. In Britain, corporate restructuring is encouraging the decentralization of white-collar functions from London, the development of the southern part of the country as a major administrative support region and leading to a blurring of the spatial separation of white-collar and blue-collar work.