ABSTRACT
This chapter reviews models of both the growth and the associated spatial evolution of an enterprise. It examines metamorphosis models and presents a new model of spatial growth and locational adjustment in enterprises where a major problem is posed by the need to balance distribution costs against economies-of-scale. The essential characteristics of the metamorphosis model are that the nature of an enterprise changes as it grows, and the change from one state to another tends to be abrupt. A critical outline of the existing models of the spatial evolution of an enterprise preceded the presentation of a more elaborate model of spatial evolution in enterprises operating in industries with high distribution costs and marked economies-of-scale. The model is presented in two parts. The first illustrates a relatively straightforward development sequence; the second attempts to include some potential interaction effects resulting from inter-enterprise relationships.
