In the late 1960s some of the big cities in regional centers of Japan started to attract increased numbers of branch offices of large enterprises. One such city was Sendai, the biggest city in the Tohoku region, which has accumulated branch offices rapidly since the 1960s. It is said that the development of Sendai since the 1960s is mainly due to the increase in the number of such branch offices. Sendai has come to be called “Shiten-keizai-no-machi”, -a phrase indicating that the city's economy now depends on branch offices.
As a result, the difference between the number of branch offices located in Sendai and that in other prefectural cities in the region has become larger. In 1991, for example, there were 6, 944 branch offices in Sendai, which was followed by Koriyama city with 1, 639 branch offices. About 70% of the branch offices in Sendai are of companies with their head offices in Tokyo or Osaka (Table 1). The proportion of companies headquartered in Tokyo is as high as 59%.
Many of the branch offices in Sendai play the role of a regional control office which covers the whole Tohoku region. It is said that Sendai is the best city in which to set up regional control branch offices because they can enjoy the benefits of accumulation and the convenience of movement within the region.
However, the role of a branch office located in Sendai differs from industry to industry. For example, in the case of wholesale and construction, about 80% of the branch offices located in Sendai are responsible for supervising the whole Tohoku region. In contrast, only about 40% of branch offices in banking, insurance, transport and communication are expected to play such a role. This implies that there are some differences among industries in the effects of accumulation and spatial efficiency.
Contact activity, including face-to-face contact and telecommunication, is one of the most important activities that can benefit from accumulation and vice versa. The study of contact activity is very relevant for the analysis of accumulation effects; however, little research has so far been conducted. This is the area the author has tried to illuminate, by conducting a questionnaire survey among the workers of branch offices in Sendai from June to October 1992.
Some of the findings are as follows.
(1) A large number of external contacts are within Sendai (Tables 4, 5). Here “external contact” means contact with other enterprises, administrative agencies, and so on. About 60% of external contacts are carried out within the city; 40% of external face to face contacts within the central business district. About 40% of external contacts are within the Tohoku region outside of Sendai. Consequently., external contacts outside the Tohoku region are few.
(2) Internal contact shows a different pattern. Here “internal contact” means contact inside an enterprise. The most important such activity seen in a branch office in Sendai is contact with its head-quarter in Tokyo. About half of internal contacts outside the Tohoku region are with head offices in Tokyo. The most popular medium for these contacts is telecommunication. However, some workers in branch offices do travel to Tokyo for business purposes about once a month.
(3) External contacts are more frequently than internal contacts. And external contacts are mainly in Sendai. However, these contacts differ from industry to industry. In the case of wholesaling branch offices, 42% of external face-to-face contacts are in Sendai (Table 11), and about 40% of them are within the Tohoku region outside Miyagi prefecture. In the case of construction, however, about 90% of external contacts are within the city. In the case of banking and insurance, many branch offices have territories covering only Miyagi prefecture, and about 90% of their external contacts are carried out in Sendai. Internal contacts are also concentrated in the city.
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