IDEAS home Printed from https://ideas.repec.org/a/sae/inrsre/v35y2012i2p211-236.html
   My bibliography  Save this article

Cluster Formation by Foreign Firms in Emerging Economies and International Joint Ventures

Author

Listed:
  • In Hyeock (Ian) Lee

Abstract

This study investigates factors that influence the termination of an international joint venture (IJV) and examines how the resulting wholly owned subsidiary’s (WOS) proximity to its previous partner can promote cluster formation in an emerging economy. The author uses a game-theoretic approach with complete information to demonstrate how the post-IJV cluster formation process is based on the cluster type to be formed—symmetrical or asymmetrical. The author also describes conditions under which government subsidies may be necessary to encourage the IJV termination and WOS formation to support cluster formation, as well as conditions where they are not required or could be counterproductive.

Suggested Citation

  • In Hyeock (Ian) Lee, 2012. "Cluster Formation by Foreign Firms in Emerging Economies and International Joint Ventures," International Regional Science Review, , vol. 35(2), pages 211-236, April.
    • Handle: RePEc:sae:inrsre:v:35:y:2012:i:2:p:211-236
    DOI: 10.1177/0160017611415266
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0160017611415266
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0160017611415266?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Michael Hitt & M. Tina Dacin & Edward Levitas & Jean-Luc Arregle & Anca Borza, 2000. "Partner Selection in Emerging and Developed Market Contexts : Resource-Based and Organizational Learning Perspectives," Post-Print hal-02276706, HAL.
    2. Ann Markusen, 1996. "Sticky Places in Slippery Space: A Typology of Industrial Districts," Economic Geography, Taylor & Francis Journals, vol. 72(3), pages 293-313, July.
    3. Michael Hitt & M. Tina Dacin & Edward Levitas & Jean-Luc Arregle & Anca Borza, 2000. "Partner Selection in Emerging and Developed Market Contexts : Resource-Based and Organizational Learning Perspectives," Post-Print hal-02312691, HAL.
    4. Farok J Contractor, 1990. "Ownership Patterns of U.S. Joint Ventures Abroad and the Liberalization of Foreign Government Regulations in the 1980s: Evidence from the Benchmark Surveys," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 21(1), pages 55-73, March.
    5. Ron Martin & Peter Sunley, 2003. "Deconstructing clusters: chaotic concept or policy panacea?," Journal of Economic Geography, Oxford University Press, vol. 3(1), pages 5-35, January.
    6. John H Dunning, 1998. "Location and the Multinational Enterprise: A Neglected Factor?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 45-66, March.
    7. Tony Frost & Changhui Zhou, 2000. "The Geography of Foreign R&D Within a Host Country," International Studies of Management & Organization, Taylor & Francis Journals, vol. 30(2), pages 10-43, June.
    8. Rugman, Alan M. & Brewer, Thomas L. (ed.), 2001. "The Oxford Handbook of International Business," OUP Catalogue, Oxford University Press, number 9780199241828.
    9. Ewen Peters & Neil Hood, 2000. "Implementing the Cluster Approach," International Studies of Management & Organization, Taylor & Francis Journals, vol. 30(2), pages 68-92, June.
    10. Michael J. Enright, 2000. "Regional Clusters and Multinational Enterprises," International Studies of Management & Organization, Taylor & Francis Journals, vol. 30(2), pages 114-138, June.
    11. Yan Zhang & Haiyang Li & Michael A Hitt & Geng Cui, 2007. "R&D intensity and international joint venture performance in an emerging market: moderating effects of market focus and ownership structure," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(6), pages 944-960, November.
    12. Yu Zhou & Tong Xin, 2003. "An Innovative Region in China: Interaction Between Multinational Corporations and Local Firms in a High-Tech Cluster in Beijing," Economic Geography, Taylor & Francis Journals, vol. 79(2), pages 129-152, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yadong Luo & Huan Zhang & Juan Bu, 2019. "Developed country MNEs investing in developing economies: Progress and prospect," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 633-667, June.
    2. Cassandra C Wang & George C S Lin & Guicai Li, 2010. "Industrial Clustering and Technological Innovation in China: New Evidence from the ICT Industry in Shenzhen," Environment and Planning A, , vol. 42(8), pages 1987-2010, August.
    3. Yeung, Henry Wai-chung & Liu, Weidong & Dicken, Peter, 2006. "Transnational corporations and network effects of a local manufacturing cluster in mobile telecommunications equipment in China," World Development, Elsevier, vol. 34(3), pages 520-540, March.
    4. repec:dau:papers:123456789/3068 is not listed on IDEAS
    5. Conlé, Marcus & Taube, Markus, 2010. "Anatomy of cluster development in China: The case of health biotech clusters," Working Papers on East Asian Studies 84/2010, University of Duisburg-Essen, Institute of East Asian Studies IN-EAST.
    6. Kwok, Francis & Sharma, Piyush & Gaur, Sanjaya Singh & Ueno, Akiko, 2019. "Interactive effects of information exchange, relationship capital and environmental uncertainty on international joint venture (IJV) performance: An emerging markets perspective," International Business Review, Elsevier, vol. 28(5), pages 1-1.
    7. 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, KU Leuven.
    8. Megan Min Zhang & Paul W. Beamish, 2019. "An institutional response model to economic liberalization: Japanese MNEs’ ownership choices in China," Asia Pacific Journal of Management, Springer, vol. 36(1), pages 33-59, March.
    9. Mark Lorenzen & Ram Mudambi & Andreas Schotter, 0. "International connectedness and local disconnectedness: MNE strategy, city-regions and disruption," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-24.
    10. Jorge Niosi, 2010. "Building National and Regional Innovation Systems," Books, Edward Elgar Publishing, number 14006.
    11. Gary A.S. Cook & Hans Lööf & Naresh R. Pandit & Börje Johansson, 2012. "The influence of clustering on MNE location and innovation in Great Britain," Chapters, in: Charlie Karlsson & Börje Johansson & Roger R. Stough (ed.), Entrepreneurship, Social Capital and Governance, chapter 3, pages 53-82, Edward Elgar Publishing.
    12. Acquaah, Moses, 2009. "International joint venture partner origin, strategic choice, and performance: A comparative analysis in an emerging economy in Africa," Journal of International Management, Elsevier, vol. 15(1), pages 46-60, March.
    13. Contractor, Farok J. & Kumar, Vikas & Kundu, Sumit K., 2007. "Nature of the relationship between international expansion and performance: The case of emerging market firms," Journal of World Business, Elsevier, vol. 42(4), pages 401-417, December.
    14. Henry Wai‐Chung Yeung, 2009. "Transnational Corporations, Global Production Networks, and Urban and Regional Development: A Geographer's Perspective on Multinational Enterprises and the Global Economy," Growth and Change, Wiley Blackwell, vol. 40(2), pages 197-226, June.
    15. Chun Yang & Haifeng Liao, 2010. "Industrial agglomeration of Hong Kong and Taiwanese manufacturing investment in China: a town-level analysis in Dongguan," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(3), pages 487-517, December.
    16. Ilgaz Arikan & Asli M. Arikan & Oded Shenkar, 2022. "Revisiting emerging market multinational enterprise views: The Goldilocks story restated," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 781-802, June.
    17. Dirk Holtbrügge & Sue Claire Berning, 2018. "Market Entry Strategies and Performance of Chinese Firms in Germany: The Moderating Effect of Home Government Support," Management International Review, Springer, vol. 58(1), pages 147-170, February.
    18. Douglas E. Thomas & Lorraine Eden & Michael A. Hitt & Stewart R. Miller, 2007. "Experience of emerging market firms: The role of cognitive bias in developed market entry and survival," Management International Review, Springer, vol. 47(6), pages 845-867, December.
    19. Bernadine J. Dykes & Ikenna Uzuegbunam, 2023. "Foreign partner choice in the public interest: Experience and risk in infrastructure public–private partnerships," Journal of International Business Policy, Palgrave Macmillan, vol. 6(1), pages 47-66, March.
    20. Mark Lorenzen & Ram Mudambi & Andreas Schotter, 2020. "International connectedness and local disconnectedness: MNE strategy, city-regions and disruption," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(8), pages 1199-1222, October.
    21. Felix Haifeng Liao & Karen Zhihua Xu & Bin Liang, 2013. "Industrial agglomeration of Taiwanese electronics firms in Dongguan, China: home effects and implications for industrial upgrading," Chapters, in: Sören Eriksson (ed.), Clusters and Economic Growth in Asia, chapter 3, pages 40-65, Edward Elgar Publishing.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:inrsre:v:35:y:2012:i:2:p:211-236. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.