BEYOND ETHNIC ENCLAVES - LOCATION STRATEGIES OF CHINESE PRODUCER SERVICE FIRMS IN LOS-ANGELES

Ethnic enclaves are often not only the main residential areas for ethn ic populations but also the prime locations for their businesses. As m ore and more ethnic enterprises locate outside such enclaves, the spat ial pattern of ethnic business becomes more complex. To understand the spatial pattern of ethnic business, I argue that we need to go beyond treating ''ethnic'' as the only adjective. Drawing from the literatur e on industrial networks and territorial agglomeration, I examine the location patterns of ethnic producer services and their interfirm tran saction networks. Chinese-owned firms in three types of producer servi ces of Los Angeles County were selected: accounting, banking, and comp uter distribution. I collected information on networks and locations t hrough surveys, interviews, and directories. This research found that location strategies are extremely important for ethnic entrepreneurs t o exploit their market niches in all three sectors. While Chinese firm s show markedly different spatial patterns from their non-Chinese coun terparts, each type of producer service also differs from the others i n spatial pattern. Accounting offices and bank branches concentrate in the Chinese central business district because of their Chinese-client -oriented network. A number of larger bank headquarters find downtown Los Angeles a favorable location because they are seeking internationa l recognition and closer integration with mainstream financial institu tions. Computer firms locate at the fringe of Chinese-concentrated are as and cluster with other Chinese computer distributors to participate in a product pool so that parts can be exchanged faster. I conclude t hat the spatial organization of ethnic business needs to be understood as the outcome of interaction between cultural and industrial identit ies of enterprises.