Study On Formation Of Local Production Networks With Enterprise Migration Perspective

With the development of the economic globalization and integration of regional economy, the competition of international and domestic market is becoming increa-singly fierce. As the external economic environment of enterprise has changed con-stantly, whether the production functions of transnational corporations, or local small and medium enterprises, have accelerated the pace of corporate relocation, in order to obtain and maintain competitive advantage, expand their market commanding heights, and seek more favorable production and operation location. In ongoing economic globalization, enterprise has adjusted its spatial organization in order to better adapt to this change. With the worldwide proliferation of Global production networks, Local production networks accompanied by strong embeddedness have gradually evolved in the course of game with local economy. This article attempted to integrate the re-search of enterprise migration and production network from a new perspective and built a new analytical framework to explore the formation of local production net-works in central and western regions of China from theoretical and empirical two as-pects. Through the analysis of Micro-enterprise organizations system and the organi-zational model of the formation of production networks among enterprises, the me-chanism of action between space activities of micro-enterprises and regional devel-opment was explored.The proof of this article initiated from the theory of interaction between the enterprise organization and regional economic. When change of external environment took place, enterprise adapted to the great change by adjusts of spatial migration. In context of informationization and advancement of technology, the character of enterprise organ-ization forms was summarized. Currently, the global production networks oriented by transnational corporations and LPNs shaped with embeddedness of industry chain were the main features of spatial enterprise organization. However, LPNs can be viewed as global production networks overlapped in the same location. The essence of LPNs formation was not just a simple geographical concentration of SMEs. The advantage of network was generated during the interaction complex association of enterprises. By contrast with other science, the study of network formation by eco- nomic geography focused on the relationship of enterprise in the network.Through the investigation of local production networks in central and western regions of China, the subject of network was mainly consisted by the migration enterprises under the interaction of organization and environment. The enterprises in the LPNs can be divided into two kinds native and migration according its location attribute. Although the core enterprise in these two types of networks was different, they shared and owned same suppliers or other elements. About formation the mechanism of networks, it can be summarized two types. One of them is leader enterprise attracted suppliers; the other is the same competitive enterprises chose to locate together. There were differences between the formation of LPNs and enterprise agglomeration. The course of formation of LPNs had much more content. The relationship of supplier chain and competitive demand were the principle of agglomeration.In the empirical parts, through the analysis of case that central province Anhui ac-cepting the enterprise migration from eastern costal region and the formation of LPNs, the proof of the theoretical framework of the article was given. As the economic hin-terland of the Yangtze River Delta, while the scale of acceptation of enterprise migra-tion has been increasing, the formation of local production networks was becoming a powerful platform for local economic development. On ground of the advantage of production networks, the function of regional economic was improved rapidly. Even-tually, the auto industry as a typical production-driven industry was chose as a study case. After probe of the relationship of enterprise in Wuhu auto and component pro-duction network and spatial formation pattern, the exploration of how the LPNs was formed in China's central and western region was done.