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How do multinational enterprises co-locate in industrial districts? An introduction to the integration of alternative explanations from international business and economic geography literatures

Hervás Oliver1
Estimated H-index: 1
(University of Alcalá),
Jose Luis1
Estimated H-index: 1
Abstract
This article focuses on understanding why multinational enterprises co-locate in industrial districts, stressing, unfolding and describing the potential of the local or regional-level agglomerations of people and firms which permits multinational enterprises to obtain additional sources of competitive advantage when properly fit. In order to fulfil this goal, the paper presents an attempt to link the literature of industrial districts and economic geography with that on international business. Three theoretical frameworks are tested in an empirical case. The paper has implications for the two lines of literature and opens up a key debate for the future.
  • References (38)
  • Citations (3)
References38
Newest
Published on May 13, 2015
Ulf Andersson32
Estimated H-index: 32
,
Mats Forsgren26
Estimated H-index: 26
,
Ulf Holm21
Estimated H-index: 21
Fiorenza Belussi18
Estimated H-index: 18
(UNIPD: University of Padua)
The literature regarding ID/C is based on seminal writings of Marshall, followed by Giacomo Becattini’s rediscovering of the concept of an «industrial district». But the concept of a «cluster» was also promoted during the 1980s by Porter, and highlighted the importance of geographically clustered and interconnected firms and institutions specialised in a particular field. Despite the model of ID/C has been often described as locally self-contained, various empirical researches and our analysis h...
Published on Jul 1, 2013in European Planning Studies2.10
José Luis Hervás Oliver18
Estimated H-index: 18
(Polytechnic University of Valencia),
Rafael Boix Domenech17
Estimated H-index: 17
The local--global phenomenon literature is fragmented between the fields of international business and economic geography (EG). In the case of the latter, the literature, produced within the global production networks (GPNs) and global value chain frameworks, does not address the central role of firms, especially multinationals which co-locate and connect territories along GPNs. This paper develops a cross-field conceptual integration in order to enrich the EG perspective, using qualitative rese...
Published on Mar 1, 2011in Journal of Management Studies5.84
Stephen Tallman25
Estimated H-index: 25
(UR: University of Richmond),
Aya S. Chacar8
Estimated H-index: 8
(FIU: Florida International University)
This paper proposes that the mechanisms of external knowledge capture and internal knowledge transfer can best be understood at the micro-organizational level of Communities of Practice (CoPs) rather than at that of the subsidiaries' network. The paper then offers a model of the dynamics of organizational learning in network organizations, such as MNEs, which builds on this unit of analysis. This model: (i) clarifies the link between CoPs and Networks of Practice (NoPs), by offering a novel conc...
Published on Mar 1, 2011in Journal of Management Studies5.84
Klaus E. Meyer41
Estimated H-index: 41
(University of Bath),
Ram Mudambi42
Estimated H-index: 42
(TU: Temple University),
Rajneesh Narula37
Estimated H-index: 37
(University of Reading)
Some scholars have argued that globalization will reduce the importance of local contexts. We argue instead that despite the increased frequency and intensity of interactions across local contexts, they continue to retain their distinctive differences. MNEs face growing challenges in managing the complexity of these interactions, because they must manage multiple embeddedness across heterogeneous contexts at two levels. First, at the MNE level, they must organize their networks to exploit effect...
Published on Mar 1, 2011in Journal of Management Studies5.84
Alan M. Rugman56
Estimated H-index: 56
(University of Reading),
Alain Verbeke47
Estimated H-index: 47
(U of C: University of Calgary),
Wenlong Yuan9
Estimated H-index: 9
(U of L: University of Lethbridge)
We re-conceptualize the Bartlett and Ghoshal typology of national subsidiary roles in the multinational enterprise (MNE), using a resource bundling perspective. Our view is that national subsidiary roles can vary dramatically across value chain activities. We focus on the distinction among innovation, production, sales, and administrative support activities. For each value chain activity, the subsidiary bundles sets of internal competences with accessible, external location advantages. We also a...
Rafael Boix Domenech17
Estimated H-index: 17
(University of Valencia),
Joan Trullén6
Estimated H-index: 6
(Autonomous University of Barcelona)
El presente trabajo presenta la revision de los mapas de distritos industriales y sistemas productivos locales manufactureros de gran empresa de Espana siguiendo la nueva metodologia ISTAT 2006. El articulo presenta la metodologia de identificacion de sistemas locales de trabajo, distritos industriales, sistemas productivos locales manufactureros de gran empresa y los resultados completos de su aplicacion para Espana. Incluye ademas los anexos con las asignaciones de los municipios espanoles por...
Published on Dec 1, 2010in Journal of Management Studies5.84
Ram Mudambi42
Estimated H-index: 42
(TU: Temple University),
Markus Venzin9
Estimated H-index: 9
(Bocconi University)
One important effect of the increasing integration of the world economy is the rising importance of possibilities to offshore and outsource value-creating activities. In many industries, firms are able to disaggregate their value chains into smaller parts. This process allows for a less path-dependent approach to the firm's ideal location profile (through offshoring and relocation) and control strategies (through outsourcing). This article argues that optimal decisions regarding individual proce...
Published on Jul 1, 2010in Journal of Economic Geography3.36
Mark Jenkins14
Estimated H-index: 14
(Cranfield University),
Stephen Tallman25
Estimated H-index: 25
(UR: University of Richmond)
An important development in the study of multinational firms and knowledge-based competitive advantage in recent years is the recognition that unique, rent-generating knowledge can be found in many locations around the globe.
Published on Jul 1, 2010in Journal of Economic Geography3.36
Sjoerd Beugelsdijk28
Estimated H-index: 28
(UG: University of Groningen),
Philip McCann43
Estimated H-index: 43
(University of Waikato),
Ram Mudambi42
Estimated H-index: 42
(TU: Temple University)
This article discusses the current links between international trade theory, economic geography and strategy and international business. We offer a way forward for building further links between these literatures that focusses on the notions of place, space and organization, and we document how the papers in this special issue contribute to this debate.
Cited By3
Newest
Published on Dec 1, 2018in Management International Review2.69
Naresh R. Pandit14
Estimated H-index: 14
(UEA: University of East Anglia),
Gary Cook11
Estimated H-index: 11
(University of Liverpool)
+ 2 AuthorsPervez N. Ghauri40
Estimated H-index: 40
(University of Birmingham)
This study’s objective is to compare cluster economies and diseconomies for multinational enterprises (MNEs) and uninational enterprises (UNEs) within the London financial services cluster. In contrast to the implicit assumption of the cluster participation literature that the economies and diseconomies of clusters are valued similarly by all firms, we find that economies relating to social capital and labour market pooling are equally important to MNEs and UNEs, economies relating to local comp...
Published on Mar 1, 2018in Review of Managerial Science2.39
José Antonio Belso-Martínez9
Estimated H-index: 9
,
María José López-Sánchez1
Estimated H-index: 1
,
Rosario Mateu-Garcia1
Estimated H-index: 1
Despite the rise of globalization, industrial clusters remain vibrant spaces for the generation of knowledge and innovation. Aware of this reality, multinational enterprises (MNEs) seek to reconcile the advantages of international operations with the specific endowments of individual territories. By studying the case of the Inditex subsidiary in the Vinalopo footwear cluster, this research shows how the creation and activity of a specialized subsidiary and the evolution of the industrial system ...
Fabio Sforzi5
Estimated H-index: 5
(University of Parma)
The year 2014 marked a double anniversary: the 35th and 25th anniversaries of the publication of two seminal papers of Giacomo Becattini on the industrial district. The first paper (Becattini, 1979) conceptualizes the industrial district as a «unit of investigation», while the second (Becattini, 1989) conceptualizes the industrial district as a «model of production». Between the two papers there is a mutual dependence. The industrial district as a «model of production» deprived of the industrial...