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Characteristics of Foreign Subsidiaries in Industry Clusters

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Author Info
Julian Birkinshaw (London Business School)
Neil Hood (University of Strathclyde)
Abstract

This paper examines the characteristics of foreign-owned subsidiaries in export-intensive “leading-edge industry clusters” as defined by Porter [1990]. Using a sample of 229 subsidiaries from three countries, we show that subsidiaries in such clusters are more embedded, more autonomous, and more internationally-oriented than subsidiaries in other industry sectors. We also show that there are significant differences in the roles of foreign-owned subsidiaries from one leading-edge cluster to the next, that are associated with the dynamism of the cluster and the overall level of foreign ownership. The results indicate (1) that typologies of subsidiary roles should give increased consideration to environmental factors, and (2) that thinking on industry clusters, instead of treating them identically, should recognize that they have heterogeneous characteristics.© 2000 JIBS. Journal of International Business Studies (2000) 31, 141–154

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Article provided by Palgrave Macmillan Journals in its journal Journal of International Business Studies.

Volume (Year): 31 (2000)
Issue (Month): 1 (March)
Pages: 141-154
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Handle: RePEc:pal:jintbs:v:31:y:2000:i:1:p:141-154

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  1. Sara C. Santos Cruz & Aurora A.C. Teixeira, 2007. "A new look into the evolution of clusters literature. A bibliometric exercise," FEP Working Papers 257, Universidade do Porto, Faculdade de Economia do Porto. [Downloadable!]
  2. Narula, Rajneesh & Dunning, John H., 2009. "Multinational enterprises, development and globalisation: Some clarifications and a research agenda," UNU-MERIT Working Paper Series 023, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
  3. Urmas Varblane & Katrin Männik & Helena Hannula, 2005. "Autonomy And Performance Of Foreign Subsidiaries In Transition Countries," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 38, Faculty of Economics and Business Administration, University of Tartu (Estonia). [Downloadable!]
  4. Urmas Varblane & Katrin Männik & Helena Hannula, 2006. "The autonomy of managers by business functions in the foreign subsidiaries from transition countries," University of Tartu - Faculty of Economics and Business Administration, in: Entrepreneurship in Estonia: policies, practices, education and research, volume 28, chapter 9, pages 172-193 Faculty of Economics and Business Administration, University of Tartu (Estonia). [Downloadable!]
  5. Antonis Demos & Fragkiskos Filippaios & Marina Papanastassiou, 2004. "An event study analysis of outward foreign direct investment: the case of Greece," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 11(3), pages 329-348, November. [Downloadable!] (restricted)
  6. Kottaridi, Constantina & Papanastassiou, Marina & Pitelis, Christos, 2009. "Determinants of MNE Subsidiaries Decisions to Set Up Own R&D Laboratories - Theory and Evidence," Papers DYNREG38, Economic and Social Research Institute (ESRI). [Downloadable!]
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  7. Brett Anitra Gilbert & Mika Tatum Kusar, 2006. "The Influence of Geographic Clusters and Knowledge Spillovers on the Product Innovation Activities of New Ventures," Papers on Entrepreneurship, Growth and Public Policy 2006-16, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
  8. Ron Martin & Peter Sunley, 2002. "Deconstructing Clusters: Chaotic Concept or Policy Panacea," ESRC Centre for Business Research - Working Papers wp244, ESRC Centre for Business Research. [Downloadable!]
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  9. Urmas Varblane & Katrin Männik & Helena Hannula, 2005. "Autonomy and Performance of Foreign Subsidiaries in five Transition Countries," William Davidson Institute Working Papers Series wp780, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  10. Forsman, Maria & Solitander, Nikodemus, 2003. "Network Knowledge versus Cluster Knowledge- The Gordian Knot of Knowledge Transfer Concepts," Working Papers 494, Hanken School of Economics. [Downloadable!]
  11. Filip De Beule & Ilke Van Beveren, 2008. "Product innovation and renewal: foreign firms and clusters in Belgium," LICOS Discussion Papers 22709, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
  12. Anoop Madhok, Anupama Phene, 2001. "The Co-evolutional Advantage: Strategic Management Theory and the Eclectic Paradigm," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 8(2), pages 243-256, July. [Downloadable!] (restricted)
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