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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.

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  • 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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    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. Benoit, Florence & Belderbos, René, 2024. "International connection, local disconnection: The (heterogeneous) role of global cities in local and global innovation networks," Journal of International Management, Elsevier, vol. 30(3).
    19. Soni Jha & Snehal Awate & Ram Mudambi, 2024. "A multilateral network perspective on inward FDI," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(3), pages 303-325, April.
    20. 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.
    21. 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.

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