The Clustering of Financial Services in London*

This paper reports a one-year study which investigated the clustering of financial services activity in London. A questionnaire asking about the advantages and disadvantages of a London location was sent to a stratified sample of 1,500 firms and institutions. In addition, thirty-nine on-site interviews with firms, professional institutions, government bodies and other related agencies were conducted. The study finds that banking, including investment banking, forms the cluster’s hub with most other companies depending on relationships with this sub-sector. Generally, the cluster confers many advantages to its incumbents including enhanced reputation, the ability to tap into large, specialized labor pool and customer proximity. The localized nature of relationships between skilled labor, customers and suppliers is a critical factor which helps firms achieve innovative solutions, develop new markets and attain more efficient ways to deliver services and products. Particularly important are the personal relationships which are enhanced by the on-going face-to-face contact that is possible in a compact geographical space. Many of the cluster’s advantages are dynamic in that they become stronger as agglomeration increases. The study also finds important disadvantages in the cluster which threaten its future growth and prosperity. These include the poor quality and reliability of transport, particularly the state of the London Underground and links to airports, increasing levels of regulation and government policy that is not co-ordinated with the whole of the cluster in mind. Key words: Industrial clustering, agglomeration, financial services.

Global Law Firms: Globalization and Organizational Spaces of Cross-Border Legal Work

The aim of this paper is not, however, to generically chart the rise of the global law firm; others have already done this. Instead, our interest lies in better understanding how existing geographies of globalization of law and lawyers, alongside the new geographies of professional partnership and legal work, have created opportunities and challenges for global law firms. More specifically, we seek to unravel the complexities of: (a) the factors driving the presence and absence of global law firms in different cities; and (b) the way that law firms have been reconfigured to operate as spatially distributed organizations present in cities as far apart as New York and Tokyo and London and Hong Kong. As we show, the decision to be there and the intricacies of operating as a global organization are both issues that have unique peculiarities when examined in relation to law and law firms, something that prevents generalization from existing studies of other professional industries. To date, however, limited attention has been paid to these organizational peculiarities. This paper seeks to fill this research void, something that is significant because the peculiarities of how global law firms operate provide the foundations upon which allow the likes of Clifford Chance to become lubricators of global capitalism through transnational lawyering and lawmaking

Comparing London and Frankfurt as world cities: a relational study of contemporary urban change

The report examines changing relations between London and Frankfurt with the introduction of a single European currency and the decision to locate the European Central Bank in Frankfurt. Based on interviews with key personnel in global financial and business service firms and institutions in both cities, the findings support a network model of inter-city relations, which, the authors contend, is more appropriate than the simplistic competition model that dominates public discussion

World cities in the Pacific Rim: a new global test of regional coherence

A new evaluation of the Pacific Rim concept is presented. The originality of this test for regional coherence is to be found in the basic units being analysed: cities instead of states. Based on a theoretical framework that identifies world city and world city network formation in terms of the office networks of advanced producer service firms, we use a principal components analysis to analyse a data set of 28 Pacific Rim cities and 46 global service firms. This identifies five main groupings of cities in terms of similar mixes of corporate service firms: a western Rim group; a group of ‘old Commonwealth’ cities; a market communist group of cities; Tokyo as a global city; and US cities as a specific separate group. These results confirm the numerous earlier studies that were sceptical of the existence of a coherent Pacific Rim region. However, the particular approach adopted here allows us to identify the Pacific Rim generically as a particularly pernicious construct. We conclude that the Pacific Rim is a geographical chaotic conception

Critiquing Construct Validity in World City Network Research: Moving from Office Location Networks to Inter-Organizational Projects in the Modeling of Intercity Business Flows

The interlocking world city network model and other office location approaches (OLAs) have become the most widely used empirical models of the world city network (WCN). Despite numerous methodological improvements, they continue to rely on a legacy of using data on office locations of firms to indirectly estimate intercity business flows. To advance the dialogue about how to improve on existing empirical models of the WCN, we examine the content, construct and structural validity of OLAs. We analyze the link between the theoretical construct of intercity business flows and network projections obtained from office location data and uncover evidence that calls into question the validity of OLAs as empirical models of the WCN. In the spirit of no deconstruction without reconstruction, we then develop an alternative empirical model of the WCN, based on directly observable relational ties among APS firms, which are formed through co-production of complex services. We call this the inter-organizational project approach (IOPA). We argue for IOPA's construct validity as an empirical model of the WCN and offer empirical evidence for its structural validity. We demonstrate it using a global sample of 161,114 investment bank syndicates in the 2000–2015 period

Cultural and economic complementarities of spatial agglomeration in the British television broadcasting industry: Some explorations.

This paper considers the processes supporting agglomeration in the British television broadcasting industry. It compares and contrasts the insights offered by the cultural turn in geography and more conventionally economic approaches. It finds that culture and institutions are fundamental to the constitution of production and exchange relationships and also that they solve fundamental economic problems of coordinating resources under conditions of uncertainty and limited information. Processes at a range of spatial scales are important, from highly local to global, and conventional economics casts some light on which firms are most active and successful

Common Threats and Managing Reputation in Executive Search Firms

A free video abstract to accompany this article can be found online at: https://www.youtube.com/watch?v=IziwDorbeGU This paper provides important insights into how executive search firms can successfully manage their reputations to overcome major threats to their organizations. The paper focuses on three threats faced by executive search firms: the global financial crisis; questions around the sector's professional status; and the proliferation of social media for recruitment. Our data show that there was not a single coherent response from firms, but a piecemeal approach that focused on three forms of reputation management. First, diversifying service offerings; second, highlighting their symbolic capital; and third, connecting their firms to clients and candidates through partners. Building on our data and the theoretical literature, we provide a framework for understanding how professional service firms can manage their reputations in response to common threats, based on three categories from the English idiom ‘keep up with the Joneses’. First, moving away from the Joneses; second, fencing out the Joneses; third, networking more than the Joneses. We provide theoretical and practical insights around how organizations can manage their reputations in response to threats which are common across sectors

Immigrant community integration in world cities

As a consequence of the accelerated globalization process, today major cities all over the world are characterized by an increasing multiculturalism. The integration of immigrant communities may be affected by social polarization and spatial segregation. How are these dynamics evolving over time? To what extent the different policies launched to tackle these problems are working? These are critical questions traditionally addressed by studies based on surveys and census data. Such sources are safe to avoid spurious biases, but the data collection becomes an intensive and rather expensive work. Here, we conduct a comprehensive study on immigrant integration in 53 world cities by introducing an innovative approach: an analysis of the spatio-temporal communication patterns of immigrant and local communities based on language detection in Twitter and on novel metrics of spatial integration. We quantify the "Power of Integration" of cities --their capacity to spatially integrate diverse cultures-- and characterize the relations between different cultures when acting as hosts or immigrants.Comment: 13 pages, 5 figures + Appendi