ggr252 readings notes

7/25/2019 GGR252 READINGS NOTES

1/27

ORGANISATIONAL RESTRUCTURING,KNOWLEDGE AND SPATIAL SCALE: THE CASE

OF THE US DEPARTMENT STORE INDUSTRYSTEVE WOOD

Department o Geo!rap"#, Un$%er&$t# o So't"ampton, SO() (*+, UK1

E-ma$.: Ste%en/M/Woo01#a"oo2o'3

Received: January 2001

ABSTRACT

Recent economic geogra!y "iterature !a# under"ined t!e ro"e o$ tacit%"oca" &no'"edge in em(edding$irm# 'it!in t!eir "oca"e#) c!aracteri#ed (y t!e 'or& on *"earning region#+) *territoria" em(eddedne##+)*in#titutiona" t!ic&ne##+ and *ne' indu#tria" #ace#+, T!i# aer contri(ute# to t!i# t!eoretica" de(ate)u#ing evidence $rom organi#ationa" re#tructuring o$ t!e -S deartment #tore indu#try to argue t!at) incontra#t) retai"er# are u#ing codi$ied%univer#a" &no'"edge) #uorted (y tacit%"oca" &no'"edge to#ucce##$u""y oerate t!eir retai" oeration# acro## a range o$ #atia" #ca"e#, A# #uc!) no one $orm o$&no'"edge i# e.c"u#ive"y re"ied uon (ut rat!er a ("end o$ &no'"edge# reduce# co#t# and increa#e#re#on#ivene## acro## #ace,

/ey 'ord#: Organi#ationa" re#tructuring) #ca"e) retai") &no'"edge

T!e deve"oment o$ t!e #atia" $orm o$ t!eorganiation cannot (e divorced $rom t!eenvironment 'it!in '!ic! it oerate# reen1330) , 245,

67TROD-CT6O7

6n recent year# t!e #tudy o$ retai" geogra!y a# a#u(di#ci"ine o$ economic geogra!y !a# #een#omet!ing o$ a renai##ance, eogra!er# !avemoved a'ay $rom traditiona" concern# $ocu#ed#o"e"y on retai" "ocation) in#tead ta&ing ne' andinnovative aroac!e# #ee Cre'e 20008 9o'e

Wrig"ey 133; $or revie'#5, 6n


2/27

ORGANISATIONAL RESTRUCTURING, KNOWLEDGE AND SPATIAL SCALE 3

o$ cororate #tructure# Sar 133?8 Wrig"ey133a) 1333a) 1333(5 and t!e con#e>uentre#tructuring o$ retai"eruent geogra


3/27

4 2002 (y t!e Roya" Dutc! eogra!ica" Society /7A

10

EORA=6ES OF /7OW9EDE A7DD6STA7CE

T!e re"ation#!i (et'een geogra!y and&no'"edge i# a com"e. one) #u(@ect to conui#ition at t!e #tore "eve" and t!e need $or economica"centra"i#ed contro" at t!e cororate !ead>uarter# t!at !a# "agued t!e -S deartment #tore, 6t i# c"ear t!at tota" co#t# !ave traditiona""y (eenat a minimum 'it! contro" decentra"i#ed to t!e divi#iona" "eve",

So'r2e : Adated $rom Jen#en and Gec&"ing 1332) , 2;,

Figure 1, T"e tra0e o ;et


7/27

14

t!at t!i# ro("em 'i"" (e #o"ved (y $ir#tcommunicating a"" t!i# &no'"edge to a centra"(oard '!ic!) a$ter integrating a"" &no'"edge)

i##ue# it# order#, We mu#t #o"ve it (y #ome$orm o$ decentra"iation =aye& 134?) , ?24)cited (y Jen#en Gec&"ing) 1332) , 2?25,

T!e "ate 130#) !o'ever) #a' t!e emergence o$muc!


8/27

'are!ou#e) and o$ten t!e manu$acturer) comuired $rom A""iedStore#

9aaru#9aaru#

13 Gem!i# area retain#o"d#mit!+# o"d#mit!+# name"ate

Ric!+#Ric!+#1332 A(ra!am and Strau##

A(ra!am and Strau##%Jordan Gar#!Jordan Gar#!

1334 Jo#e! =orne Co, Ac>ui#ition9aaru#

9aaru#1334 Gacy+# Ea#t Ac>ui#ition

Gacy+# Ea#tA(ra!am and Strau##%

Jordan Gar#!133? Ric!%o"d#mit!+#

Ric!+#%9aaru#%o"d#mit!+#

At"anta59aaru#

133? Broad'ay Broad'ay) ? #tore#: B"oomingda"e+# Ac>ui#ition o$ 2 #tore#Emorium and ?; #tore#: GacyWein#toc name"ate#5 21 #tore# #o"d

133; Jordan Gar#! Gacy Ea#t 9o#e# autonomy in Gacy Ea#tDivi#ion

133; Bu""oc&+# Gacy We#t 9o#e# autonomy in GacyWe#t Divi#ion

So'r2e& : Variou# trade re## "iterature and di#cu##ion# 'it! comany e.ecutive#,

4 2002 (y t!e Roya" Dutc! eogra!ica" Society /7A

20 vendor# 'or& toget!er more e$$ective"y to managemerc!andi#e inventorie#, T!i# 'a# t!e $ir#t #te


13/27

to'ard# moderni#ing t!e $irm 'it! a ne'#tructure con$igured $or t!e ne' mi""ennium, T!e"ync!in o$ t!e ne' initia


14/27

merc!ant# !ad reviou#"y #"it t!eir time (et'eent!e divi#ion# and t!eir team#,

T!e need to remain #en#itive to "oca" mar&et#and "imit t!e co#t #aving t!oug! centra"i#ation i#c"ear, A# S'inyard 133H5 #ugge#t#) t!e#e

innovation# are raid"y c!an


15/27

(e!ind


16/27

Ta("e ;, Sta!e& $n t"e re2on$!'rat$on o Fe0erate0 Lo!$&t$2& an0 Operat$on& FLO ,

Date Comment#

1334 Federated merc!andi#ing #et u to couarter o$ an !our, Over t'o


17/27

remain# critica", Second) it i# #ti"" 'ide"y vie'edt!at i#o"ated codi$ied &no'"edge o$ #a"e# data and$oreca#ting remain# in#u$$iuite $ran&"y) a# t!e eo"e 'ere '!o 'ere inAt"anta '!en t!ey 'o&e u every morning)"iving in t!e city '!ere t!ey 'ere #e""ing t!eroduct , , , We !ave a #i#ter divi#ion in F"oridaca""ed Burdine#) t!ey 'a&e u everyday and iti# 0 degree#) '!en t!ey are 'a&ing u and iti# 0) our (uyer# are 'a&ing u and it i# 20,It $& "ar0 to t"$n3 a;o't &"ort &.ee%e &"$rt&t"at 9 0e!ree&, 6t i# ea#y tot!in& a(out t!em'!en it i# 0) #o again 'e get a"itt"e (it (etter at t!i# every day, But do 6 t!in&our (uyer# &no' t!e F"orida mar&et a# 'e"" a# t!eF"orida (uyer# 7o 6 don+t (e"ieve t!ey do, 6

t!in& t!at Burdine# (uyer# &no' t!eir mar&et(etter t!an our (uyer#, We !ave to get (etter at it ,, , So t"ere $& a $ne .$ne ;etuent"y c"ear co#t# and (en


18/27

ORGANISATIONAL RESTRUCTURING, KNOWLEDGE AND SPATIAL SCALE 2?

Ta("e H, Centra.$&e0 'n2t$ona. $nte!rat$on %er&'& 0e2entra.$&e0 ;'&$ne&& 'n$t $nte!rat$on,

Organi#ing rinci"e Advantage# Di#advantage#

Functiona" integration Organi#e $unctiona""y Economie# o$ #ca"e in 9ac& o$ re#on#ivene##

centra"i#ed5 to ac!ieve co#t and di#tri(ution to "oca" re>uirement##&i"" advantage# o$ adverti#ing) Di$$icu"t to deve"o#ca"e in$ra#tructure genera" manager#

Bui"d# $unctiona" #&i"" E.en#e o$ *e.ert#ueriority #y#tem#+6n$ormation can (e Vendor inten#i$ication"everaged acro## t!e may re#u"t in too muc!'!o"e organi#ation !omogeneity in

a##ortment7e' roduct# $rom#ma""er vendor# o$tenover"oo&edo##i("e "ac& o$

accounta(i"ity at adi#tance

Bu#ine## unit Organi#e around Focu#%c"ear 9ac& o$ #ca"eintegration mu"ti"e ro$it centre# accounta(i"ity Du"ication o$ e$$ortdecentra"i#ed5 to gain advantage o$ C"o#e to cu#tomer Q 7o critica" ma## o$

$ocu# re#on#ivene## #&i""#Bui"d# team#%identitie#

So'r2e : Adated $rom eorgeet a. 1334) , ??,

to maintain "in to t!e (uyer# and #trategi#t# in!ead o$$ice a# 'e"" a# to t!e cu#tomer# (ut 'it!int!e #tructure o$ a very "arge $irm+ , 12?5, A# t!etec!no"ogie# avai"a("e to retai"er# !avedeve"oed) it !a# (een increa#ing"y o##i("e toc!ange tacit &no'"edge) on t!e trend# anddemand# o$ t!e "oca" mar&et) to roduce ana(#traction o$ codi$ied &no'"edge at a centra"noda" oint, T!i# tran#$ormation !a# !ad t!ee$$ect o$ con$"ating di#tance) a# caita" re"ace#"a(our at t!e "oca" "eve", T!e#e e.ert #y#tem#!ave t!e otentia" to deter


19/27

*managing $rom a di#tance+ , , , i# no "onger anacceta("e too" $or #trategic management in a'or"d o$ &een cometition and !ig! demand $or"oca" re#on#ivene##+ , 5, A# a re#u"t) (uyer# are#ti"" "ocated at t!e divi#iona" "eve") a# it i# $e"t t!att!e com(ination o$ tacit%.o2a. &no'"edge i,e,

(eing near t!eir mar&et#5 i# imortant) (ut at t!e#ame time) (ene$iting $rom t!e matri. o$#e"ection# deve"oed 2entra..# (y t!e!ead>uarter# merc!andi#ing grou, T!i#centra"i#ation rere#ent# a moveuarter#) nece##ari"y contain# mu"ti"e #u(

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