ABSTRACT

Economic Geography deals with spatial analysis and focuses on the placement or localization of objects in the 'landscape' and how they relate to each other. Important distinctions in Economic Geography are the concepts of place, space and scale. This chapter analyses N. Nohria and S. Ghoshal's concept of the differentiated network in the context of concepts related to Economic Geography contingences. The differentiated network approach does not explicitly consider Economic Geography factors, but they are implicit in the concept of the multinational corporations (MNC) as a differentiated network. The chapter outlines the key characteristics of the differentiated network paradigm. It examines the relationship of the MNC as a differentiated network in the context of key economic geography factors. The chapter considers how integrating key issues from Economic Geography's analysis of global production networks may provide a better understanding of how the network relationships of MNCs help to manage global value chains in ways that enhance firm specific advantages.