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How Early Entrants Impact Cluster Emergence: MNEs vs. Local Firms in the Bangalore Digital Creative Industries

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  • Lorenzen, Mark

Abstract

This article addresses the question of how the emergence of a cluster in a global innovation system is influenced by early entrants. It does so by presenting an explorative study of the emerging digital creative industries cluster in Bangalore. I find that MNE entrants develop production and technological capabilities comparatively fast within a narrow range of value chain activities with limited spillovers to the cluster. In comparison, local entrants develop such capabilities more slowly, but within a broader range of value chain activities and with higher spillovers of skills and knowledge, as well as higher participation to building a local entrepreneurial ecosystem. I propose that these effects are moderated by the size of national consumer markets as well as industry context in the guise of project lengths and technological modularity. I also point to the role of global connectivity, proposing that local entrants, in particular, leverage international personal relationships for development of not only relational, but also production capabilities.

Suggested Citation

  • Lorenzen, Mark, 2019. "How Early Entrants Impact Cluster Emergence: MNEs vs. Local Firms in the Bangalore Digital Creative Industries," Management and Organization Review, Cambridge University Press, vol. 15(3), pages 495-531, September.
    • Handle: RePEc:cup:maorev:v:15:y:2019:i:03:p:495-531_00
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    Cited by:

    1. Bejjani, Melissa & Göcke, Lutz & Menter, Matthias, 2023. "Digital entrepreneurial ecosystems: A systematic literature review," Technological Forecasting and Social Change, Elsevier, vol. 189(C).

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