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Regional clusters in transition economies: solving institutional voids to generate internationalization advantages

In: The Globalization of Regional Clusters

Author

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  • Tine Lehmann
  • Nobina Roy

Abstract

Globalization and localization are intertwined current trends. Companies are under pressure to internationalize to keep up with global competition, but at the same time the importance of local knowledge and networks seems to be a paramount asset. This is true for companies in all kind of institutional environments. But how are these two trends intertwined from a company perspective in transition economies? How does the localization in a regional cluster in a transition economy affect a firms’ internationalization? We apply a qualitative approach to follow this research question, based on 23 interviews from Southeast European clusters. In contrast to previous research, which demonstrated that companies’ internationalization weakens local ties, we show that in transition economies clusters are a means to overcome local institutional problems and hence strengthen firms’ internationalization advantages.

Suggested Citation

  • Tine Lehmann & Nobina Roy, 2021. "Regional clusters in transition economies: solving institutional voids to generate internationalization advantages," Chapters, in: Dirk Fornahl & Nils Grashof (ed.), The Globalization of Regional Clusters, chapter 5, pages 105-126, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:19540_5
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