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

Mudambi, Ram; Santangelo, Grazia D.

doi:10.1080/00343404.2014.985199

Cited by 63 publications

(52 citation statements)

References 78 publications

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“…The core-periphery framework (Benito & Narula, 2007;Mudambi & Santangelo, 2016;Santangelo, 2009;Wallerstein, 1974) divides locations into core and periphery, based on the extent of their integration with the world economy (usually operationalized by the volume or density of FDI activity). Periphery locations, which receive little FDI relative to core locations, are characterized by shallow resource pools and limited economic activity.…”

Section: Core and Periphery Locationsmentioning

confidence: 99%

“…Periphery locations, which receive little FDI relative to core locations, are characterized by shallow resource pools and limited economic activity. Nevertheless, the periphery may be attractive to MNEs because of the availability of valuable basic resources, such as semi-skilled labor, at a relatively low cost (Mudambi & Santangelo, 2016;Santangelo, 2009). In addition, governments often provide subsidies and incentives to attract FDI to periphery regions (Cheng, 2014).…”

Section: Core and Periphery Locationsmentioning

confidence: 99%

“…Repeated interaction between foreign MNEs and local actors may improve information about and access to resources such as labor, infrastructure, and finance (Mariotti et al, 2010;Mudambi, 2002;Spencer, 2008). Interactions among foreign MNEs in core locations may also lead to technology and other knowledge spillovers (Mudambi & Santangelo, 2016;Santangelo, 2009). However, increasing competition among firms in core locations tends to create substantial upward pressure on the costs of labor, land, and other crucial inputs.…”

Section: Core and Periphery Locationsmentioning

confidence: 99%

“…Leveraging geo-visualization methodology allowed us to integrate data-driven definitions with social theory (Dana et al, 2008;Rezaei, 2011) through deterministic interpolation, and to create a social-based system where all points, even in remote areas, have relationships. This allowed us to determine coethnic cores and peripheries, thus capturing subnational differences more accurately (Alcácer & Zhao, 2016;Mudambi & Santangelo, 2016). It also allowed us to track how the boundaries of cores and peripheries shift over time in response to sustained FDI inflows.…”

Section: Defining Core and Periphery With Geo-visualizationmentioning

confidence: 99%

“…By zooming in on co-ethnic agglomerations and their effects on within-country MNE expansion, we extend the core-periphery framework (Benito & Narula, 2007;Mudambi & Santangelo, 2016;Santangelo, 2009;Wallerstein, 1974) and integrate it with the co-ethnic perspective grounded in economic sociology (Levitt, 2004;Portes & Sensenbrenner, 1993;Rezaei, 2011). Second, we show how IB research can overcome the need for predefined administrative units and achieve a much more accurate definition of subnational core-periphery regions with the help of geo-visualization methodologies.…”

Section: Introductionmentioning

confidence: 99%

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Core or periphery? The effects of country-of-origin agglomerations on the within-country expansion of MNEs

et al. 2018

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We show how the initial subnational entry location of foreign multinational enterprises (MNEs) in China influences their subsequent within-country location choices and expansion speed. We distinguish between MNEs that establish their first subsidiary in co-ethnic cores -dense agglomerations of other firms from the same country of origin -and MNEs that locate their first subsidiary in the periphery, i.e., outside of these co-ethnic cores. To identify co-ethnic cores in China, we employ a geo-visualization methodology, which draws the boundaries of cores organically and dynamically over time. We contrast our findings with the prevailing approach of using static administrative boundaries for identifying agglomerations. Our results provide evidence of path dependency, in that (a) entry through subnational locations with strong co-ethnic communities is followed by expansion into other locations where co-ethnic communities are present, and that (b) entry through co-ethnic communities accelerates the pace at which MNEs establish additional subsidiaries in China. We also find that co-ethnic community effects continue to influence within-country MNE activities over time, despite a host of economic, institutional, and investment developments.

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Section: Core and Periphery Locationsmentioning

confidence: 99%

Section: Core and Periphery Locationsmentioning

confidence: 99%