The Economies and Diseconomies of Industrial Clustering: Multinational Enterprises versus Uninational Enterprises

Pandit, Naresh R, Cook, Gary A S, Wan, Feng, Beaverstock, Jonathan V and Ghauri, Pervez N (2018) The Economies and Diseconomies of Industrial Clustering: Multinational Enterprises versus Uninational Enterprises. Management International Review. ISSN 0938-8249

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      Abstract

      This study’s objective is to compare cluster economies and diseconomies for multinational enterprises (MNEs) and uninational enterprises (UNEs) within the London financial services cluster. In contrast to the implicit assumption of the cluster participation literature that the economies and diseconomies of clusters are valued similarly by all firms, we find that economies relating to social capital and labour market pooling are equally important to MNEs and UNEs, economies relating to local competition and diseconomies relating to congestion costs are more important to MNEs than to UNEs, and economies relating to the reputational effects of locating in a world-leading cluster and access to specialised suppliers are more important to UNEs than to MNEs. That MNEs and UNEs do not experience cluster economies and diseconomies in the same way indicates that both cluster participation theory and international business theory need augmentation to recognise that cluster incumbents benefit and suffer from cluster membership differently.

      Item Type: Article
      Uncontrolled Keywords: clusters,location,fdi,mnes,unes,financial services
      Faculty \ School: Faculty of Social Sciences > Norwich Business School
      Depositing User: LivePure Connector
      Date Deposited: 11 Jul 2018 11:30
      Last Modified: 13 Dec 2018 20:30
      URI: https://ueaeprints.uea.ac.uk/id/eprint/67581
      DOI: 10.1007/s11575-018-0363-1

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