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Multinationals, Intracorporate Competition, and Regional Development

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  • N. A. Phelps
  • C. Fuller

Abstract

In this paper we concentrate on a neglected process in the restructuring of multinational enterprises (MNEs) and the formation of spatial divisions of labor. Existing conceptions of interlocality competition for mobile investment and spatial divisions of labor center on the dynamics of new greenfield investment. We provide instead an exploratory analysis of interlocality competition centered on intracorpo-rate competition for repeat investment, broadly defined. We draw together diverse strands of literature to develop a simple taxonomy of types of intracorporate competition, exploring some of the implications of competition for successful MNE affiliates and their host localities. We go on to illustrate these ideas with reference to case studies of manufacturing affiliates of MNEs in an older industrial region of Wales. Although many of the repeat investments of MNEs are in principle contestable, the discussion and the case studies stress the difficulties faced by affiliates and localities at the periphery of spatial divisions of labor in winning, retaining, and benefiting from such investments.

Suggested Citation

  • N. A. Phelps & C. Fuller, 2000. "Multinationals, Intracorporate Competition, and Regional Development," Economic Geography, Taylor & Francis Journals, vol. 76(3), pages 224-243, July.
  • Handle: RePEc:taf:recgxx:v:76:y:2000:i:3:p:224-243
    DOI: 10.1111/j.1944-8287.2000.tb00142.x
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    Cited by:

    1. Miguel Atienza & Martín Arias‐Loyola & Nicholas Phelps, 2021. "Gateways or backdoors to development? Filtering mechanisms and territorial embeddedness in the Chilean copper GPN’s urban system," Growth and Change, Wiley Blackwell, vol. 52(1), pages 88-110, March.
    2. Florian Becker-Ritterspach & Christoph Dörrenbächer, 2011. "An Organizational Politics Perspective on Intra-firm Competition in Multinational Corporations," Management International Review, Springer, vol. 51(4), pages 533-559, August.
    3. Danny MacKinnon & Andrew Cumbers & Andy Pike & Kean Birch & Robert McMaster, 2009. "Evolution in Economic Geography: Institutions, Political Economy, and Adaptation," Economic Geography, Clark University, vol. 85(2), pages 129-150, April.
    4. Markus Grillitsch & Mikhail Martynovich & Rune Dahl Fitjar & Silje Haus-Reve, 2021. "The black box of regional growth," Journal of Geographical Systems, Springer, vol. 23(3), pages 425-464, July.
    5. Riccardo Crescenzi & Arnaud Dyèvre & Frank Neffke, 2022. "Innovation Catalysts: How Multinationals Reshape the Global Geography of Innovation," Economic Geography, Taylor & Francis Journals, vol. 98(3), pages 199-227, May.
    6. Yanzhe Cui & Yingnan Niu & Yawen Ren & Shiyi Zhang & Lindan Zhao, 2024. "A Model to Analyze Industrial Clusters to Measure Land Use Efficiency in China," Land, MDPI, vol. 13(7), pages 1-22, July.
    7. Phelps, Nicholas A. & Stillwell, John C.H. & Wanjiru, Roseline, 2009. "Broken Chain? AGOA and Foreign Direct Investment in the Kenyan Clothing Industry," World Development, Elsevier, vol. 37(2), pages 314-325, February.
    8. Hendriks, Guus, 2020. "How the spatial dispersion and size of country networks shape the geographic distance that firms add during international expansion," International Business Review, Elsevier, vol. 29(6).
    9. Carlos e Silva & Geoffrey Hewings, 2012. "Locational and managerial decisions as interdependent choices in the headquarter-manufacturing plant relationship: a theoretical approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(3), pages 703-717, June.
    10. Henrik Dellestrand & Philip Kappen & Olof Lindahl, 2020. "Headquarter resource allocation strategies and subsidiary competitive or cooperative behavior: achieving a fit for value creation," Journal of Organization Design, Springer;Organizational Design Community, vol. 9(1), pages 1-16, December.
    11. Patrick Collins & Seamus Grimes, 2008. "Ireland's Foreign‐Owned Technology Sector: Evolving Towards Sustainability?," Growth and Change, Wiley Blackwell, vol. 39(3), pages 436-463, September.
    12. Sverre Herstad & Øyvind Pålshaugen & Bernd Ebersberger, 2011. "Industrial Innovation Collaboration in a Capital Region Context," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 2(4), pages 507-532, December.
    13. Gustavo S. Cortes & Renato L. Marcondes & Maria Dolores M. Diaz, 2009. "A Importância da Organização Interna da Firma para o Processo de Fragmeção Espacial da Produção: uma Simulação," Working Papers 12-2011, Universidade de São Paulo, Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto.
    14. Martijn J. Burger & Bert van der Knaap & Ronald S. Wall, 2013. "Revealed competition for greenfield investments between European regions," Journal of Economic Geography, Oxford University Press, vol. 13(4), pages 619-648, July.
    15. David Edgington & Roger Hayter, 2013. "The In Situ Upgrading of Japanese Electronics Firms in Malaysian Industrial Clusters," Economic Geography, Clark University, vol. 89(3), pages 227-259, July.
    16. José Plá Barber & Cristina Villar & Luis Silva Domingo, 2015. "Parenting MNC networks through springboard subsidiaries: a dynamic model of evolution," Documentos de Investigación 100, Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales.
    17. Nicholas A. Phelps & Mark Tewdwr-Jones, 2001. "Globalisation, Regions and the State: Exploring the Limitations of Economic Modernisation through Inward Investment," Urban Studies, Urban Studies Journal Limited, vol. 38(8), pages 1253-1272, July.
    18. Fuchs Martina & Winter Johannes, 2008. "Competencies in subsidiaries of multinational companies: The case of the automotive supply industry in Poland," ZFW – Advances in Economic Geography, De Gruyter, vol. 52(1), pages 209-220, October.
    19. Wioletta Mierzejewska, 2022. "Understanding Coopetition Within Multinational Corporations: The Perspective of Relationship Between Subsidiaries," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(3), pages 371-385, September.
    20. José Quesada-Vázquez & Juan Carlos Rodríguez-Cohard, 2019. "Subsidiary upgrading and regional innovation policies: The case of Valeo lighting Systems Spain and the Andalusian Plastic Innovation Centre," Environment and Planning C, , vol. 37(5), pages 908-928, August.
    21. Gammelgaard, Jens & McDonald, Frank & Stephan, Andreas & Tüselmann, Heinz & Dörrenbächer, Christoph, 2012. "The impact of increases in subsidiary autonomy and network relationships on performance," International Business Review, Elsevier, vol. 21(6), pages 1158-1172.
    22. Blevins, Dane P. & Moschieri, Caterina & Pinkham, Brian C. & Ragozzino, Roberto, 2016. "Institutional changes within the European Union: How global cities and regional integration affect MNE entry decisions," Journal of World Business, Elsevier, vol. 51(2), pages 319-330.
    23. Riccardo Crescenzi & Arnaud Dyèvre & Frank Neffke, 2020. "Innovation catalysts - How multinationals reshape the global geography of innovation," Papers in Evolutionary Economic Geography (PEEG) 2016, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2020.

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