Interorganizational Networks and Location Investment Decisions : A Canadian Example

Most location investments in retailing are frequently viewed as resulting from a combination of objective site assessments and decisions by individual organizations. They are also influenced, however, by the relationships between retailers, developers, financiers and planners, among others. Such “inter‐organizational networks” are formed by a variety of mechanisms–structural links, investments, personnel movements and sentiment relations–and can be of mutual benefit to concerned parties, acting as a form of social regulation on their decisions and activities. Examines the apparent locational implications of such networks by reference to the oligopolistic structure of the shopping mall sector in Canada where the system seems to have developed into a highly controlled and mature market with little evidence of aggressive locational competition between organizations (in terms of siting new malls). Concludes that such joint stewardship of resources by developers and retailers might offer useful lessons for more sustainable retail development in the UK.