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Communications revolutions create possibilities for firms to control time and space in economic activity differently so that what is inefficient or even impossible as a business model at one point in time may be viable as a profit-making venture in another historical moment. When firms grasp the opportunities for crafting new routines from breakthroughs in communications, and as firms create new forms of organization to implement such routines, their efforts lead to changes in the timing cycles and territorial arrangements of business operations.

As firms discover these routes to more efficient routines, they are compelled to assume new and different capabilities in order to capture the profit—the rents—from doing things differently. In recasting business practices and assuming new capabilities, the innovative firm reorganizes the structure of its enterprise and in the process reshapes the territory in which it assumes control over newly crafted routines. Not all firms are equally successful in learning about profit opportunities in economic environments modified by new transport and communications systems.

Introduction 7 regions where assembly sites are located. In this way, Dell is playing a critical role in the development of high-technology industrial districts. 2 The two companies actively shape these relationships of proximity in order to manage and control the movement of materials between these nodes and to execute their direct-pull high-velocity systems of production and distribution. In the process, both firms have emerged as agents in reshaping territory for profit making. Nevertheless, the pattern of elongation and concentration created by the two firms reveals a clear and obvious geographical difference.

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10 Rules For Success In Small Business And Entrepreneurship


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