Firm Organization with Multiple Establishments*

• 成果类型: Article
• 署名作者: Gumpert, Anna; Steimer, Henrike; Antoni, Manfred
• 署名单位: University of Munich; Leibniz Association; Ifo Institut; Centre for Economic Policy Research - UK
• 刊物名称: QUARTERLY JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0033-5533
• DOI: 10.1093/qje/qjab049
• 发表日期: 2022
• 页码: 1091-1138
• 关键词: flattening firm; KNOWLEDGE; COMMUNICATION; hierarchies; networks; IMPACT; TRADE

摘要

We show theoretically and empirically that the managerial organization of multiestablishment firms is interdependent across establishments. To derive our result, we study the effect of geographic frictions on firm organization. In our model, we assume that a CEO's time is a resource in limited supply, shared across headquarters and establishments. Geographic frictions increase the costs of accessing the CEO. Hiring middle managers at one establishment substitutes for CEO time, which is reallocated across all establishments. Consequently, 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 multiestablishment firm organization that we document using administrative data from Germany. We exploit the opening of high-speed railway 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. JEL Codes: D21, D22, D24.