Functional Dynamics and a Peripheral Quaternary Place: The Case of Calgary

The existence of regional economic disparities is a persisting feature of Canada. Although numerous explanations have been advanced for variations in economic well-being throughout the country, one common element faced by all is the inherent spatial character of the problem (Michalak and Fairbairn 1988). Among the most prominent conceptualizations of the Canadian space-economy that have been advanced in the regional development literature has been the core-periphery, or heartland-hinterland, theory (Green 1990; McCann 1987). This paper focuses attention on the core-periphery conceptualization of the Canadian space-economy as it relates to the development of a system of corporate headquarters centres, or quaternary places, in Canada. In recent years, a number of researchers have begun to focus on the changing location of headquarters and related services in Canada. In connection with corporate decision-making, researchers have examined the implications of domestic and foreign ownership for headquarters location (Semple 1977; Semple and Smith 1981), the inter-city linkages associated with corporate board members (Green and Semple 1981; Rice and Semple 1993), and the impact of mergers, acquistions, and joint ventures for cities and firms (Green 1985, 1990; Green and McNaughton 1989). In related areas, researchers have also investigated the location and linkages of offices (Gad 1985, 1991a, 1991b) and services (Coffey and Polese 1989; Stabler and Howe 1993) that are themselves highly connected to corporate decision-making. Much of this effort has emphasized the role of cities in Ontario and Quebec as the focus of high-level corporate activity in Canada (Rice and Semple 1993; Semple and Smith 1981). While some work has focused on the location of producer services outside of the Canadian heartland (Ley and Hutton 1991; Michalak and Fairbairn 1988), researchers have recently begun to write specifically about headquarters location in the periphery (Semple 1994). This paper attempts to extend the theory relating to advanced corporate functions, and decision-making in particular, by examining the location of headquarters in the periphery of Canada. This paper examines the emergence of Calgary as an important quaternary place in the Canadian periphery over the period 1970-1990. The paper particularly focuses on the composition of the city's headquarters community, and the context of this community within the broader economy for the nation as a whole. The study attempts to relate the spatial conceptualization of the Canadian economy embodied in core-periphery theory to Calgary's status as a peripheral quaternary place. Quaternary Location Research Advancement and Connections This study's major contribution is to the literature on quaternary location (Holloway and Wheeler 1991; Rice and Semple 1993; Semple 1973, 1977, 1985, 1995; Wheeler and Mitchelson 1989). Despite its relatively recent introduction, quaternary location analysis finds its roots in the well-established field of location analysis in economic geography. Beginning with the work of Thunen (1826), location analysis has built a long tradition of explanation for the location of a wide variety of economic activites, ranging from agriculture (Dunn 1956) and manufacturing (Losch 1954) to the highest-order services located in the elite cities of the world (O hUallachain 1989). The study of the location of headquarters and related decision-making activities constitutes one of the latest additions to this growing body of theory. Quaternary location research finds a close counterpart in service location analysis. Although quaternary activities are arguably distinct from other kinds of advanced services (Semple and Rice 1994), quaternary location research and service location research are highly complementary. The substantial producer service literature that has evolved in recent years (Daniels 1991; Kirn et al. 1990; O hUallachain 1989) deals specifically with businesses such as law firms, accounting firms, and management consultants that locate in close proximity to important corporate headquarters. …