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

Ram Mudambi and Grazia Santangelo

Regional Studies, 2016, vol. 50, issue 12, 1965-1979

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.

Date: 2016
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DOI: 10.1080/00343404.2014.985199

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