Construct Validity in World City Network Research: From Office Location Networks to Inter-Organisational Projects in the Analysis of Intercity Business Flows

23 Pages Posted: 1 Apr 2019

See all articles by Vladimír Pažitka

Vladimír Pažitka

University of Oxford - School of Geography and the Environment

Dariusz Wojcik

University of Oxford, St. Peter's College

Eric R. W. Knight

University of Sydney Business School

Date Written: March 8, 2019

Abstract

The Interlocking World City Network Model (IWCNM) and other office location approaches (OLAs) have become the most widely used empirical models of the world city network (WCN) over the last two decades. Despite numerous methodological improvements, they still rely on Taylor’s (2001) legacy of using data on office locations of firms to indirectly estimate intercity business flows. Notwithstanding criticism from both within the mainstream of the global and world cities research as well as postcolonial and poststructuralist geographers, OLAs maintain their dominant position in recently published research. To advance the dialogue on the appropriateness of OLAs as empirical models of WCN, we consider their construct validity by examining the link between theory and empirical models. We uncover evidence that calls into question the validity of OLAs for empirical modelling of intercity business flows. In the spirit of no deconstruction without reconstruction, we develop a new model based on directly observable business flows, which we call the inter-organisational project approach (IOPA). We deductively argue for IOPA’s construct validity as an empirical model of the WCN and offer empirical evidence for its structural validity. We demonstrate it using a global sample of 161,114 investment bank syndicates in the 2000 – 2015 period.

Keywords: Interlocking World City Network Model (IWCNM), intercity business flows, financial and business services, advanced producer services, world city network, construct validity

JEL Classification: F30, F65, G24, L10, R10

Suggested Citation

Pažitka, Vladimír and Wojcik, Dariusz and Knight, Eric R. W., Construct Validity in World City Network Research: From Office Location Networks to Inter-Organisational Projects in the Analysis of Intercity Business Flows (March 8, 2019). Available at SSRN: https://ssrn.com/abstract=3349287 or http://dx.doi.org/10.2139/ssrn.3349287

Vladimír Pažitka (Contact Author)

University of Oxford - School of Geography and the Environment ( email )

Mansfield Road
Oxford OX1 3TB, OX1 3QY
United Kingdom

Dariusz Wojcik

University of Oxford, St. Peter's College ( email )

New Inn Hall Street
Oxford, OX1 2DL
United Kingdom

Eric R. W. Knight

University of Sydney Business School ( email )

Cnr. of Codrington and Rose Streets
Sydney, NSW 2006
Australia

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