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 language | English |
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Journal | Regional Studies |
Volume | 50 |
Issue number | 12 |
Pages (from-to) | 1965-1979 |
Number of pages | 15 |
ISSN | 0034-3404 |
DOIs | |
Publication status | Published - 2016 |
Externally published | Yes |
Keywords
- Peripheral areas
- Shallow resource pools
- Emerging clusters
- Subsidiary entry timing
- Entry mode and mandate