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

Regional Studies, 2015, Forthcoming

Posted: 28 Jan 2015

See all articles by Ram Mudambi

Ram Mudambi

Temple University - Department of Strategic Management

Grazia D. Santangelo

Università degli Studi di Catania

Date Written: January 27, 2015

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.

Keywords: Peripheral areas, Shallow resource pools, Emerging clusters, Subsidiary entry timing, Entry mode and mandate

JEL Classification: F23, R11, R58

Suggested Citation

Mudambi, Ram and Santangelo, Grazia D., From Shallow Resource Pools to Emerging Clusters: The Role of Multinational Enterprise Subsidiaries in Peripheral Areas (January 27, 2015). Regional Studies, 2015, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2556552

Ram Mudambi (Contact Author)

Temple University - Department of Strategic Management ( email )

Fox School of Business and Management
Philadelphia, PA 19122
United States
215-204-2099 (Phone)
215-204-8029 (Fax)

HOME PAGE: http://sbm.temple.edu/~rmudambi/index.html

Grazia D. Santangelo

Università degli Studi di Catania ( email )

Università degli Studi di Catania
Via V. Emanuele 8
Catania, Sicily 95128
Italy

HOME PAGE: http://www.fscpo.unict.it/docenti/prof.ssa_Santangelo.htm

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