Arbeitspapier
Firm Organization with Multiple Establishments
How do geographic frictions affect firm organization? We show theoretically and empirically that geographic frictions increase the use of middle managers in multi-establishment firms. In our model, we assume that the time of the CEO of a firm is a resource of limited supply that is shared among the headquarters and the establishments. Geographic frictions increase the costs of accessing the CEO. Hiring middle managers at an establishment substitutes for CEO time that is reallocated over all establishments. In consequence, geographic frictions between the headquarters and one establishment affect the organization of all establishments of a firm. Our model is consistent with novel facts about multi-establishment firm organization that we document using administrative data from Germany. We exploit the opening of high-speed train routes to show that not only the establishments directly affected by faster travel times but also the other establishments of the firm adjust their organization. Our findings imply that local conditions propagate across space through firm organization.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 7435
- Klassifikation
-
Wirtschaft
Firm Behavior: Theory
Firm Behavior: Empirical Analysis
Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- Thema
-
firm organization
multi-establishment firm
knowledge hierarchy
geography
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Gumpert, Anna
Steimer, Henrike
Antoni, Manfred
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2018
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Gumpert, Anna
- Steimer, Henrike
- Antoni, Manfred
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2018
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