London and Frankfurt in Europe's evolving financial centre network

The launch of the Euro and the location of the European Central Bank in Frankfurt initially was seen as a threat to London's pre-eminent position in European financial geographies. This paper explains why in fact this was not the case. To do this, the paper is divided in two. Firstly, it reviews the literatures that help to explain financial geographies. It is argued that we need to move away from investigating attribute properties such as financial turnover and instead examine the role of networks and interdependencies in producing financial geographies. Secondly, it identifies London's dominance and Frankfurt's growth as a complementary centre through quantitative analysis and then explains how European networks and interdependencies produce this, based on insights from interviews with investment bankers and insurance institution workers in the two cities.     

The organizational paradox in advertising and the reconfiguration of project cooperation

In recent literature, projects are mostly seen as an efficient form of organization which is particularly suited for mastering tasks of high complexity and creativity and adapting to changing economic and institutional conditions. This paper challenges the assumption that inter-firm projects are persistent organizational arrangements of production in the advertising industry and presents a novel argument about the potential threats to forms of project organization in crisis situations. By exploring the cases of Frankfurt/Main and Leipzig (East Germany), we show that the organization of production is substantially affected by periods of economic crisis or political transformation. We demonstrate that inter-firm projects might be replaced by more durable organizational configurations or might not be viewed as viable options in situations of severe rupture. This applies particularly to the cooperative arrangements in the creative process and leads to an organizational paradox. Although creativity is often a pivotal force to gain competitive advantage, the advertising agencies respond to the challenges of crises by reducing cooperation with external partners to a minimum and sometimes fully rely on in-house personnel. This threatens the potential of the respective firms to develop innovative and creative ideas which would enable the firms to acquire new customers and market segments. Instead of trying to overcome crises by focusing on their creative capabilities, many advertising agencies develop a cost-cutting strategy and rely on more durable network-forms of organization instead of inter-firm projects.