The physical organization of firm activities distributes organizational resources, defines firm boundaries and determines firms' physical structure. Yet, while resource distribution, boundary definition, and firm structure are key themes in the strategy literature, the strategic import of firms' physical organization (i.e., the physical distribution of resources, administrative units and firm activities, and the physical design and layout of tangible resources) remains largely unexplored. This dissertation explores the strategic relevance of firms' physical organization, unifying interconnected - but fragmented - bodies of knowledge from the fields of management, design and geography. Unlike traditional economic geography studies, I adopt a multi-level (e.g., inter- and intra-firm) and multi-scale (e.g., bird's-eye geographic patterns, and up-close design) view; I also emphasize firm-wide physical organization, and links to firm-level outcomes (e.g., administration, value creation and competitive advantage). This approach yields a uniquely firm-centric, strategic lens for studying the physical organization of economic activity - a 'strategic firm geography' perspective. This dissertation develops this strategic firm geography perspective, with seven main chapters organized in three parts. Part One: Foundations focuses on 'physical organization' scholarship, investigating theoretical and empirical reasons why this subject is underexplored in contemporary management research, and proposing strategies for addressing this gap. Part Two: Building Blocks presents methods for studying firms' physical organization, and illuminates behavioral mechanisms and processes that underlie its strategic relevance. Part Three: Applied 'Strategic Firm Geography' shows how the theory, methods and mechanisms from Parts One and Two can be applied to two empirical settings: the U.S. Computer Programming Services sector, and multi-sector M& A involving U.S. Targets (and foreign and domestic Acquirers). I explore cross-sectional and cross-year (1987-2002) variation in firms' physical organization, testing for differences by type of firm activity and/or relationship, and find that firms use physical organization as a strategic tool, and still use 'physical proximity' as an organizing tool to facilitate administrative coordination/control, even after the mainstream adoption of information and communication technologies. Together, the theory and empirics provide insight into the strategic role of firms' physical organization, and uncover opportunities for extending broader management theory.
