Geopolitical Impact of the Concept of Corporate Networks
| Author | Olivier Lefebvre |
| Published date | 01 July 1995 |
| Date | 01 July 1995 |
| DOI | http://doi.org/10.1177/019251219501600306 |
| Subject Matter | Articles |
267-
Geopolitical
Impact
of
the
Concept
of
Corporate
Networks
OLIVIER
LEFEBVRE
ABSTRACT.
It
is
apparent
that
firms
require
efficient
networks,
including
telecommunications
networks.
This
affects
their
strategies
and
their
capital
expenditure
which,
in
the
case
of
large-sized
firms,
is
often
inter-
national.
It
is
in
the
interest
of
states
that
efficient
networks
should
exist
as
they
are
useful
for
firms
that
carry
out
takeovers
(that
is,
firms
with
an
attacking
attitude),
as
well
as
those
that
have
recourse
to
subcon-
tracting
and
franchising
(that
is,
firms
with
a
defensive
attitude).
The
article
deals
with
the
impact
of
such
networks
on
companies
and
discusses
how
changes
take
place
in
a
geopolitical
context.
Introduction
It
is
fairly
obvious
that
the
development
of
large
networks
depends
on
political
circumstances.
This
is
clearly
shown
by
spectacular
examples
concerning
networks
at
the
end
of
the
nineteenth
century-steamships,
railways,
the
electric
telegraph.
This
was
the
era
of
the
transport
revolution.
Three
models
of
large
networks
can
be
distinguished.
The
American
model:
economic
and
dynamic.
The
expansion
westward
occurred
in
depop-
ulated
areas
(or
the
existence
of
a
sparse
original
population
was
of
no
consequence
as
measures
had
already
been
taken
to
expand).
In
these
conditions,
demography
goes
hand
in
hand
with
networks
which
guarantees
that
only
cost-effective
networks
are
built.
The
new
farmers
did
not
pay
for
their
land
which
could
be
cultivated
with
no
crop
rotation
or
the
use
of
fertilizers
in
the
early
years.
From
the
start,
the
operating
conditions
were
capitalistic.
Outlets
were
ensured
by
low
costs
and
high
demand
in
American
cities
and
in
Europe.
Immigration
solved
the
problem
of
the
level
of
wages
for
agricultural
workers.
All
this
explains
the
economic
success
from
which
networks
benefited.
The
European
model:
political
and
controlling.
In
France,
the
rail
network
was
consid-
ered
to
be
a
political
instrument
by
the
Third
Republic.
It
was
to
carry
the
influ-
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