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

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Abstract

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.
Original languageEnglish
JournalRegional Studies
Volume50
Issue number12
Pages (from-to)1965-1979
Number of pages15
ISSN0034-3404
DOIs
Publication statusPublished - 2016
Externally publishedYes

Keywords

  • Peripheral areas
  • Shallow resource pools
  • Emerging clusters
  • Subsidiary entry timing
  • Entry mode and mandate

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