HIERARCHICAL CORPORATE DECISION-MAKING STRUCTURE WITHIN THE CANADIAN URBAN SYSTEM: THE CASE OF BANKING

Abstract

This paper examines the nature of the hierarchical managerial decision-making structure of banking corporations and the related urban hierarchical power structure in Canada. Large corporations in Canada wield tremendous economic power. Some of the largest and most powerful corporations are banks. The decisions made at their headquarters affect all regions of the country. Past research on corporate decisionmaking power assumed that total control existed at the headquarters location. This research refines that approach and examines decision-making power in terms of both regional branch office and national head office locations. Analysis of the locations of the headquarters and regional offices provides insight into the spatial distribution of financial decision-making power within the Canadian urban system. The location of this power is important as regional development and viability depend upon the availability of money and accessibility to financial decision-making centers. Regions with no major headquarters or important branch offices may find financial support difficult to acquire.