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From Shallow Resource Pools to Emerging Clusters: The Role of Multinational Enterprise Subsidiaries in Peripheral Areas

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  • Ram Mudambi
  • Grazia D. Santangelo

Abstract

Mudambi R. and Santangelo G. D. From shallow resource pools to emerging clusters: the role of multinational enterprise subsidiaries in peripheral areas, Regional Studies. Pressured by heightened competition, multinational enterprises (MNEs) are discovering pockets of resources in non-traditional locations. This study proposes a dynamic model explaining the role of MNE subsidiary entry timing, entry mode and mandate in the process of transforming a peripheral area of an advanced market economy into an ‘emerging cluster’, a location where internal (local) resources and external (international) connectivity have been established, but are not yet mature. Illustrative cases relating to a period of almost five decades from a peripheral European Union area support the conclusion that MNEs' strategies are critical in transforming shallow resource pools into emerging clusters.

Suggested Citation

  • Ram Mudambi & Grazia D. Santangelo, 2016. "From Shallow Resource Pools to Emerging Clusters: The Role of Multinational Enterprise Subsidiaries in Peripheral Areas," Regional Studies, Taylor & Francis Journals, vol. 50(12), pages 1965-1979, December.
    • Handle: RePEc:taf:regstd:v:50:y:2016:i:12:p:1965-1979
    DOI: 10.1080/00343404.2014.985199
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    References listed on IDEAS

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    1. Guy Dumais & Glenn Ellison & Edward L. Glaeser, 2002. "Geographic Concentration As A Dynamic Process," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 193-204, May.
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