This paper investigates the spatial characteristics, of networks, which arise as a firm`s strategy to enhance its competitiveness to cope with the changing economic environments characterized by technological changes and increasing competitiveness. T...
This paper investigates the spatial characteristics, of networks, which arise as a firm`s strategy to enhance its competitiveness to cope with the changing economic environments characterized by technological changes and increasing competitiveness. The theoretical framework in this study proposes that networks emerge as a firm`s strategies to promote its competitiveness through the vertical/horizontal disintegration of the production system. Futhermore, regional industries can help to account for the spatial characteristics of networks. The study examines the types of cooperation and the spatial boundary of the computer industry networks in Korea. Questionnaire survey was conducted on 1,128 computer companies which had more than 10 employees, with 126 questionnaires being used for analysis. In addition, newpaper articles were used to supplement the foregoing work on network characteristics. The review of these articles covers the period from Jan. 1994 to June 1996. Major findings of this study are as follows The spatial range of cooperative networks varies according to the specific characters of cooperation (R&D, production, and sales). Intralocal networks are being developed in Kangnam and Youido area, the computer industry agglomeration clusres of Seoul. There are the regional differences in the agents and contents of cooperation. In intra-national R&D and production networks, regional differences in agglomerations and non-agglomerations are not detected. Most networks of this type are found between large firms and small firms. In contrast, foreign R&D and production networks, which are operated mostly by large firms, are found in Kangnam, Youido, and CBD. Intra-national and foreign production networks are also focused in Kangnam, Youido, and CBD. Small firms are playing an active role in making this type of cooperation possible. In the perspective of localization-globalization, Korean computer industry can be analyzed in two respects: industrial and regional. The localization of small firms and the localization-globalization of large firms` networks are being developed in industrial contexts, while the localization-globalization of agglomerations and the localization of non-agglomerations networks are being developed in regional contexts. As networks for the localization-globalization of industry are growing in agglomerations, interfirm networks could be related to trends in the formation or intensification of industrial agglomerations. Industrial agglomeration areas function as a facilitator of localization through subcontracts, intraregional network and interregional network. They also facilitate globalization via foreign networks. In non-agglomeration areas, localization networks, which are connected with agglomeration areas via subcontracting, inter regional R&D, or production cooperation.