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External networks and geographic clustering as sources of MNE advantages: Foreign and indigenous professional service firms in Central London


  • Lilach Nachum
  • David Keeble


This study combines the theories of international business and management with network theory in order to examines the networking activities of foreign affiliates. It focuses on a specific kind of network, which is taking place between firms based in geographic proximity. A comparative analysis between foreign and indigenous firms in selected professional service industries located in Central London is used as the analytical tool to isolate the networking attributes of firms in general from those that are unique to foreign affiliates and emerge as a result of their specific characteristics. The findings suggest considerable differences between foreign and indigenous firms in terms of their network behaviour. MNE internal networks appear partially to replace the advantages provided by external networks, acting both to diminish the MNE's need for external linkages and channel it into somewhat different directions.

Suggested Citation

  • Lilach Nachum & David Keeble, 2001. "External networks and geographic clustering as sources of MNE advantages: Foreign and indigenous professional service firms in Central London," Working Papers wp195, Centre for Business Research, University of Cambridge.
  • Handle: RePEc:cbr:cbrwps:wp195
    Note: PRO-1

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    Cited by:

    1. Johannes Gluckler, 2007. "Geography of Reputation: The City as the Locus of Business Opportunity," Regional Studies, Taylor & Francis Journals, vol. 41(7), pages 949-961.

    More about this item


    networking; Multinational Enterprises; geographic clustering; Professional service firms; London;

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

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