Head and Branch Offices of Big Private Enterprises in Major Cities of Japan

Abstract

This article focuses on some aspects of economic management function performed by head and branch offices of big private enterprises located in the major cities of Japan, reviewing them from a historical perspective.
In 1907, there were large agglomerations of this function in the former six big cities (Tokyo, Osaka, Nagoya, Yokohama, Kyoto, and Kobe), and a fairly large number of head offices were located in some provincial cities. Head offices in these provincial cities, however, decreased gradually while those in Tokyo continued to increase. The trend has basically been maintained to present.
The agglomerations in Yokohama, Kyoto, and Kobe have not grown very much since 1935, in the postwar period, in particular. On the contrary, those in regional primate cities have grown very rapidly since 1935 when they started to show such a tendency. From 1960 onwards, the ranking by agglomeration size has been completely reversed between the former and the latter groups. Furthermore, the agglomeration of this function has tremendously increased in the provincial cities like Niigata, Shizuoka, Chiba, Kanazawa, Toyama, and Okayama. It is also inferred from Figure 2 that the tendency will continue in the years to come. In the three metropolises (Tokyo, Osaka and Nagoya), however, the growth of the agglomeration almost came to a halt in 1980 probably because of the small increase in number of the relevant corporations covered in that year. It exhibits contrast vis-àa-vis the growing trend of the agglomeration in the regional primate cities even though the increase was small. A follow-up survey to see further transition would be worthwhile and of great interest.
In terms of the types of industries, during the earlier periods reviewed here, the number of head and branch offices of iron/steel & machinery and chemical/rubber & ceramics industries was small. These types of industries, however, began to multiply their offices at a turning point in 1935. Especially from 1960 onwards, the increasing trend became stronger.
The branch offices of the iron/steel & machinery industry in particular started to increase in 1935, and have been the most important type of industry throughout the postwar period. The agglomerations of this industry were mostly found in the three metropolises in the earlier periods, and gradually increased in the regional primate cities as well. It is also to be noted that the construction industry increased its head and branch offices after World War II. In view of the total number of branch offices, the finance & insurance industry is naturally the largest due to the nature of its services requiring intensive office network.
It is an important point to be noted that the branch offices of the iron/steel & machinery industry are not numerous in Yokohama, Kyoto, Kobe and the above mentioned six provincial cities including Niigata, although the respective total agglomeration sizes in these cities are large. In these cities, on the other hand, the agglomeration of the branch offices of finance. & insurance and construction industries is sizable, although the share in number of corporations by this group of industries is not. It is because the number of the size of branch offices of these types of industries are closely linked with the high intensity of the population agglomeration in the respective cities, than with territories for their operation.
A review on the relocation of functional head offices in the postwar period points out the enhanced importance of Tokyo as reflected in the emergence of the double head office system. The Osaka group corporations which have their origins in Osaka, in particular, have strengthened the functions of their Tokyo head offices rather than of their Osaka offices, as typically shown in the case of the trading companies. The waning trend of Osaka is observed in relocation of head office functions.