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One link in the chain: Vancouver's independent bicycle dealers in the context of the globalized bicycle production network by Darcy McCord B.A. (Canadian Studies), Trent University, 2006 Research Project Submitted In Partial Fulfillment of the Requirements for the Degree of Master of Urban Studies in the Urban Studies Program Faculty of Arts and Social Science Darcy McCord 2013 SIMON FRASER UNIVERSITY Summer 2013 Approval Name: Darcy McCord Degree: Master of Urban Studies Title of Thesis: One link in the chain: Vancouver's independent bicycle dealers in the context of the globalized bicycle production network Examining Committee: Chair: Patrick J. Smith Professor, Urban Studies and Political Science Simon Fraser University Peter V. Hall Senior Supervisor Associate Professor, Urban Studies Simon Fraser University Karen Ferguson Supervisor Associate Professor, Urban Studies and History Simon Fraser University Paul Kingsbury External Examiner Associate Professor, Geography Simon Fraser University Date Defended/Approved: July 24, 2013 ii Partial Copyright Licence iii Ethics Statement The author, whose name appears on the title page of this work, has obtained, for the research described in this work, either: a. human research ethics approval from the Simon Fraser University Office of Research Ethics, or b. advance approval of the animal care protocol from the University Animal Care Committee of Simon Fraser University; or has conducted the research c. as a co-investigator, collaborator or research assistant in a research project approved in advance, or d. as a member of a course approved in advance for minimal risk human research, by the Office of Research Ethics. A copy of the approval letter has been filed at the Theses Office of the University Library at the time of submission of this thesis or project. The original application for approval and letter of approval are filed with the relevant offices. Inquiries may be directed to those authorities. Simon Fraser University Library Burnaby, British Columbia, Canada update Spring 2010 Abstract In this research project I explore the role of Vancouver's independent bicycle dealers (IBDs) in the context of a globalized bicycle production network. I consider how IBDs in Vancouver fit within the global network using frameworks developed in the Global Commodity Chain, Global Value Chain, and Global Production Network literature. I identify network actors at the local scale and the relationships between these actors, I suggest that embeddedness is an important feature of the local IBD sector, and I consider the foundations on which IBDs base their independence in this globalized industry. My research findings suggest that while the shift to global production in the bicycle industry has resulted in a greater number IBDs in Vancouver, there is cause to take a cautionary stance looking forward. Keywords: Bicycle industry; independent retailers; global production networks; local consumers; embeddedness iv Acknowledgements To begin, I would like to thank my senior supervisor, Dr. Peter Hall, for his insight and encouragement throughout my time in the Urban Studies program. As well, thanks to my second supervisor, Dr. Karen Ferguson, for her tough-love approach in the research design phase of this project. The dedication of these two individuals inspired me to create a project that I can feel proud of. Thanks also to all of the faculty and staff in the program from whom I have had the pleasure of learning, and thanks especially to all of the students in the program; it’s been a pleasure working with all of you. Of course, a major research project such as this one could not have been completed without the help and encouragement of the interview respondents who took time out of their busy schedules to speak with me. Your insights were invaluable. I would like to acknowledge the financial support of the Social Sciences and Humanities Research Council through the Joseph Armand Bombardier CGS Masters Scholarship. This award made completion of the project possible. Finally, I extend a big thank you to my family and friends for your ongoing love and support. While I acknowledge the important contributions of the above-named people, any errors and omissions are entirely my own. v Table of Contents Approval .......................................................................................................................... ii Partial Copyright Licence ............................................................................................... iii Abstract .......................................................................................................................... iv Acknowledgements ......................................................................................................... v Table of Contents ........................................................................................................... vi List of Figures................................................................................................................ viii List of Acronyms ............................................................................................................. ix 1. Introduction .......................................................................................................... 1 1.1. Preamble ................................................................................................................ 1 1.2. Research question.................................................................................................. 2 1.3. Overview ................................................................................................................ 6 2. Literature Review .................................................................................................. 7 2.1. The shift from domestic vertical integration to global dispersion ............................. 8 2.2. GCC, GVC, and GPN frameworks ........................................................................ 13 2.3. Inserting local IBDs into the Global Production Network ....................................... 20 3. Methodology ....................................................................................................... 25 3.1. Content Analysis .................................................................................................. 26 3.2. Statistical Data and Business Listings .................................................................. 27 3.3. Semi-Structured Interviews ................................................................................... 30 4. Research Findings ............................................................................................. 36 4.1. Vancouver's IBDs, 1970-2012 .............................................................................. 36 4.1.1. The 10-speed boom: 1970s ...................................................................... 40 4.1.2. The Mountain Bike boom: 1980s and 1990s ............................................. 42 4.1.3. Back to the pavement: the 2000s .............................................................. 47 4.2. Actors in the IBD channel in Vancouver ................................................................ 48 4.2.1. Independent Bicycle Dealers ..................................................................... 48 4.2.2. Bicycle Brands .......................................................................................... 51 4.2.3. Part and Accessory Suppliers ................................................................... 56 4.2.4. Bicycle consumers .................................................................................... 58 4.2.5. Alternatives to the neighbourhood IBD ...................................................... 60 Mass merchants: Threat from below ......................................................... 60 Online retail: Threat from above ................................................................ 62 5. Discussion .......................................................................................................... 64 5.1. Three dimensions of embeddedness in the structure of the local IBD network ................................................................................................................. 64 5.1.1. Societal Embeddedness ........................................................................... 65 5.1.2. Network embeddedness ........................................................................... 68 5.1.3. Territorial embeddedness ......................................................................... 69 5.2. How the shift to global production has impacted local IBDs .................................. 71 vi 5.2.1. Independent Bicycle Dealers? ................................................................... 72 Establishing independence through selection/specialization ..................... 72 Bicycle brands and shop branding ............................................................ 74 Establishing identities through critique of other shops ............................... 75 5.2.2. Risk of commoditization ............................................................................ 77 6. Conclusion .......................................................................................................... 82 References ................................................................................................................... 85 Appendices .................................................................................................................