International business, cities and competitiveness: recent trends and future challenges

Iammarino, Simona; McCann, Philip

doi:10.1108/cr-10-2017-0070

Cited by 20 publications

(16 citation statements)

References 102 publications

(106 reference statements)

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“…The acquisition of such resources enables the development of innovation that deliver FSA leading to competitive advantages (Pitelis and Teece, 2010;Zahra and George, 2002). The concentration of rich asset bases with supporting institutional and well-connected infrastructure systems in world cities lead to dynamic environments that are underpinned by complex network connections (Beaverstock, 2004;Cook and Pandit, 2018;Iammarino et al, 2018;Turok, 2004). Developing inter-organizational networks enable irms to embed into the "economic buzz" and effective "face to face" communication available in world cities (Jones, 2007;Storper and Venables, 2004).…”

Section: Inter and Intra-organizational Networkmentioning

confidence: 99%

“…These cities also have good global connectivity with infrastructure that provide effective transportation of goods and people, and information technology (IT) infrastructure conducive to effective data transmission (Derudder et al, 2010;Lee & Rodríguez-Pose, 2014;Mans, 2013). Cities that provide TNCs with such competitive advantages offer attractive features that inluence their location decisions (Iammarino et al, 2018;Kilroy et al, 2015;OECD. 2006).…”

Section: Introductionmentioning

confidence: 99%

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How TNC subsidiaries shine in world cities: Policy implications of autonomy and network connections

McDonald

Gammelgaard

Tüselmann

et al. 2020

Transnational Corporations

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The study examines the relationship between performance and patterns of autonomy and the network relationships used by the foreign subsidiaries of transnational corporations (TNCs) in world cities compared to those subsidiaries outside these locations. This is done by exploring if these patterns differ in foreign subsidiaries in Greater Copenhagen compared to elsewhere in Demark. The indings reveal that there are important differences in the relationships between performance and the autonomy and network structures in foreign subsidiaries. These indings are discussed and policy implications distilled. The study inds that the scope of inward foreign direct investment (FDI) policy could be usefully extended to encompass urban development thereby helping cities develop assets, institutional support and infrastructure that can enhance agglomeration beneits and global connectivity. The indings indicate policies, aimed at helping subsidiaries embed in host location networks and incorporate these networks into other parts of the parent company, could be beneicial. The paper also discusses economic and social inequality that can stem from network patterns and the inclination of subsidiaries to operate autonomously in world cities. It proposes policy options that can lead subsidiaries to undertake high-value activities and innovation in world cities.

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Section: Inter and Intra-organizational Networkmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

How TNC subsidiaries shine in world cities: Policy implications of autonomy and network connections

McDonald

Gammelgaard

Tüselmann

et al. 2020

Transnational Corporations

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show abstract

“…Rodriguez-Pose, 2013;Bathelt and Glückler, 2014;Rodriguez-Pose and Storper, 2015). When places are discriminated on the basis of such international interdependencies, connectivity becomes one of the most important differentiators of growth trajectories behind regional survival and revival (Crescenzi and Iammarino, 2017;Iammarino et al, 2018b).…”

Section: Globalisation Through Fdi and Geographymentioning

confidence: 99%

FDI and regional development policy

Iammarino

2018

J Int Bus Policy

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The transformations in the worldwide division of labour brought about by globalisation and technological change have shown an unintended negative effect, particularly evident in advanced economic systems: uneven spatial distribution of wealth and rising within-country inequality. Although the latter has featured prominently in recent academic and policy debates, in this paper we argue that the relevance of connectivity (here proxied by foreign capital investments, FDI) for regional economic development is still underestimated and suffers from a nation-biased perspective. As a consequence, the relationship between the spatial inequality spurred by the global division of labour and the changes in the structural advantages of regions remains to be fully understood in its implications for economic growth, territorial resilience and industrial policy. Furthermore, even though connectivity entails bi-directional links-i.e. with regions being simultaneously receivers and senders-attractiveness to foreign capital has long been at the centre of policy attention whilst internationalisation through investment abroad has been disregarded, and sometimes purposely ignored, in regional development policy agendas. We use three broad-brushed European case-studies to discuss some guiding principles for a place-sensitive regional policy eager to integrate the connectivity dimension in pursuing local economic development and territorial equity.

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“…At the same time, there is now a better understanding of the nuanced role of geography, so that countries are not necessarily the prime geographic unit of interest for various policy decisions by firms and governments (Mudambi, Li, Ma, Makino, Qian, & Boschma, 2018a). In particular, scholars and policymakers have pointed to the pivotal role of cities in facilitating the creation and trade of knowledge-based services, a core activity for many contemporary multinational enterprises (MNEs) (Iammarino, McCann, & Ortega-Argilés, 2018;Santangelo, 2018;Trujillo & Parilla, 2016). Cities can generate strong agglomeration economies in both physical and knowledge infrastructures (Davis & Dingel, 2019;Glaeser, 2008;Bryan, Glaeser, & Tsivanidis, 2019), leading to the co-location of MNEs, and, in particular, knowledge-based professional service firms as well as the knowledge-based parts of MNE GVCs in these cities (Belderbos, Sleuwaegen, Somers, & De Backer, 2016;Belderbos, Du, & Slangen, 2020;Mudambi, Narula, & Santangelo, 2018b).…”

Section: Introductionmentioning

confidence: 99%

Expanding the international trade and investment policy agenda: The role of cities and services

2020

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We explore the public policy implications of two new, significant, and interrelated global phenomena. First, the rising share of services, particularly innovation-driven digital and knowledge-based services, in foreign trade and multinational enterprise activity; and second, the increasingly important role of global cities as home and hosts to these activities. Our framework distinguishes between national economic policies to promote trade and FDI, referred to as economic diplomacy, and comparable policies originating in cities, referred to as city diplomacy. National economic diplomacy has traditionally promoted trade and investment in goods, often through trade agreements and promotion agencies, and we explore the limitations of these tools as trade in services becomes more important. However, we also note that trade in services, particularly innovation-driven services, is concentrated in global cities, and traded between them, often within MNEs. We conclude that national policies on trade and investment cannot be divorced from innovation and knowledge strategies, and that these strategies cannot be divorced from cities. We emphasize that national economic diplomacy should be better aligned with city diplomacy. We also discuss how the transition to stronger city diplomacy may have consequences for firms and their strategies for corporate diplomacy.

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International business, cities and competitiveness: recent trends and future challenges

Cited by 20 publications

References 102 publications

How TNC subsidiaries shine in world cities: Policy implications of autonomy and network connections

How TNC subsidiaries shine in world cities: Policy implications of autonomy and network connections

FDI and regional development policy

Expanding the international trade and investment policy agenda: The role of cities and services

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