IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v50y2016i12p1965-1979.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00343404.2014.985199
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00343404.2014.985199?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stefania Oppido & Stefania Ragozino & Gabriella Esposito De Vita, 2023. "Peripheral, Marginal, or Non-Core Areas? Setting the Context to Deal with Territorial Inequalities through a Systematic Literature Review," Sustainability, MDPI, vol. 15(13), pages 1-36, July.
    2. Grazia D Santangelo & Klaus E Meyer, 2017. "Internationalization as an evolutionary process," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(9), pages 1114-1130, December.
    3. Shameen Prashantham & Sumelika Bhattacharyya, 2020. "MNE–SME co-innovation in peripheral regions," Journal of International Business Policy, Palgrave Macmillan, vol. 3(2), pages 134-153, June.
    4. 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.
    5. Murphree, Michael & Petersen, Bui & Warrian, Peter & Gosine, Ray, 2022. "Scope and scale of technology challenge and MNE subsidiary knowledge sourcing in host countries," Technovation, Elsevier, vol. 116(C).
    6. Andersson, Ulf R. & Brewster, Chris J. & Minbaeva, Dana B. & Narula, Rajneesh & Wood, Geoffrey T., 2019. "The IB/ IHRM interface: Exploring the potential of intersectional theorizing," Journal of World Business, Elsevier, vol. 54(5), pages 1-1.
    7. 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.
    8. Sindy Martínez-Marín & Nataly Puello-Pereira & David Ovallos-Gazabon, 2020. "Cluster Competitiveness Modeling: An Approach with Systems Dynamics," Social Sciences, MDPI, vol. 9(2), pages 1-18, February.
    9. Ekaterina Turkina & Ari Van Assche, 2018. "Global connectedness and local innovation in industrial clusters," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(6), pages 706-728, August.
    10. Maximilian Stallkamp & Brian C Pinkham & Andreas P J Schotter & Olha Buchel, 2018. "Core or periphery? The effects of country-of-origin agglomerations on the within-country expansion of MNEs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(8), pages 942-966, October.
    11. McDonald, Conor & Buckley, Peter J. & Voss, Hinrich & Cross, Adam R. & Chen, Liang, 2018. "Place, space, and foreign direct investment into peripheral cities," International Business Review, Elsevier, vol. 27(4), pages 803-813.
    12. Marina Papanastassiou & Robert Pearce & Antonello Zanfei, 2020. "Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: A review of the literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 623-664, June.
    13. Chakravarty, Dwarka & Goerzen, Anthony & Musteen, Martina & Ahsan, Mujtaba, 2021. "Global cities: A multi-disciplinary review and research agenda," Journal of World Business, Elsevier, vol. 56(3).
    14. Dahms, Sven, 2019. "Foreign-owned subsidiary knowledge sourcing: The role of location and expatriates," Journal of Business Research, Elsevier, vol. 105(C), pages 178-188.
    15. Ekaterina Turkina & Ari Van Assche, 2018. "Global Connectedness and Local Innovation in Industrial Clusters," CIRANO Working Papers 2018s-12, CIRANO.
    16. Lô, Amadou & Geiger, Martha, 2022. "Managing internal embeddedness in multinational corporations’ R&D subsidiaries: An evolutionary perspective on the automotive industry in Silicon Valley," Technovation, Elsevier, vol. 113(C).
    17. Wu, Sihong & Huang, Xinli & Fan, Di & Su, Yiyi & Li, Yongjian, 2023. "Cluster linkages in the global production networks: Exploring the impacts on the expansion of emerging market multinationals," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 171(C).
    18. Shasha Zhao & Hui Tan & Marina Papanastassiou & Anne-Wil Harzing, 2020. "The internationalization of innovation towards the South: A historical case study of a global pharmaceutical corporation in China (1993–2017)," Asia Pacific Journal of Management, Springer, vol. 37(2), pages 553-585, June.
    19. Marcus M. Larsen & Ben Mkalama & Michael J. Mol, 2023. "Outsourcing in Africa: How do the interactions between providers, multinationals, and the state lead to the evolution of the BPO industry?," Journal of International Business Policy, Palgrave Macmillan, vol. 6(4), pages 432-452, December.

    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. Erik Stam, 2010. "Entrepreneurship, Evolution and Geography," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 6, Edward Elgar Publishing.
    2. Adriano Borges Costa & Ciro Biderman, 2016. "A Dinâmica Da Concentração Do Emprego Industrial No Brasil (1991-2011) E O Ciclo De Vida Das Empresas," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42nd Brazilian Economics Meeting] 180, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    3. Wang, Liang & Tan, Justin & Li, Wan, 2018. "The impacts of spatial positioning on regional new venture creation and firm mortality over the industry life cycle," Journal of Business Research, Elsevier, vol. 86(C), pages 41-52.
    4. Luciana Lazzeretti & Rafael Boix & Francesco Capone, 2009. "Why do creative industries cluster? An analysis of the determinants of clustering of creative industries," Institut Metròpoli Working Paper in economics 0902, Institut Metròpoli.
    5. Chen, Ping-Chuan & Hung, Shiu-Wan, 2016. "An actor-network perspective on evaluating the R&D linking efficiency of innovation ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 303-312.
    6. Yu Sun & Xingxuan Kuang & Dazhi Sun, 2016. "The geographic concentration of China’s e-business enterprises: where they gather and why," Electronic Markets, Springer;IIM University of St. Gallen, vol. 26(1), pages 31-42, February.
    7. Giuseppe Espa & Giuseppe Arbia & Diego Giuliani, 2013. "Conditional versus unconditional industrial agglomeration: disentangling spatial dependence and spatial heterogeneity in the analysis of ICT firms’ distribution in Milan," Journal of Geographical Systems, Springer, vol. 15(1), pages 31-50, January.
    8. Dauth, Wolfgang & Fuchs, Michaela & Otto, Anne, 2015. "Standortmuster in Westdeutschland: Nur wenige Branchen sind räumlich stark konzentriert," IAB-Kurzbericht 201516, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    9. Thi Xuan Thu Nguyen & Javier Revilla Diez, 2017. "Multinational enterprises and industrial spatial concentration patterns in the Red River Delta and Southeast Vietnam," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(1), pages 101-138, July.
    10. Lu, Jiangyong & Tao, Zhigang, 2009. "Trends and determinants of China's industrial agglomeration," Journal of Urban Economics, Elsevier, vol. 65(2), pages 167-180, March.
    11. Suho Bae, 2009. "The responses of manufacturing businesses to geographical differences in electricity prices," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(2), pages 453-472, June.
    12. Federico Curci, 2015. "The taller the better? Agglomeration determinants and urban structure," ERSA conference papers ersa15p991, European Regional Science Association.
    13. Yilin Dong, 2020. "Determinants of entry: Evidence from new manufacturing firms in the U.S," Growth and Change, Wiley Blackwell, vol. 51(4), pages 1542-1561, December.
    14. Markusen, James & Gervais, Antoine & Venables, Anthony, 2021. "Urban specialisation; from sectoral to functional," CEPR Discussion Papers 15677, C.E.P.R. Discussion Papers.
    15. Edward L. Glaeser, 1998. "Are Cities Dying?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 139-160, Spring.
    16. Joe Tharakan & Jean‐Philippe Tropeano, 2009. "On The Impact Of Labor Market Matching On Regional Disparities," Journal of Regional Science, Wiley Blackwell, vol. 49(1), pages 57-80, February.
    17. Florian Noseleit, 2020. "The Role of Entry and Market Selection for the Dynamics of Regional Diversity and Specialization," Regional Studies, Taylor & Francis Journals, vol. 49(1), pages 76-94, July.
    18. Rickard, Stephanie J., 2020. "Economic geography, politics, and policy," LSE Research Online Documents on Economics 104716, London School of Economics and Political Science, LSE Library.
    19. Belmartino, Andrea & Calá, Carla Daniela, 2020. "A regional approach to the study of industrial diversity in Argentina (1996–2012)," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    20. William R. Keeton & Geoffrey B. Newton, 2006. "Migration in the Tenth District : long-term trends and current developments," Economic Review, Federal Reserve Bank of Kansas City, vol. 91(Q III), pages 33-74.

    More about this item

    Statistics

    Access and download statistics

    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:taf:regstd:v:50:y:2016:i:12:p:1965-1979. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRES20 .

    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.