Multinational enterprise subsidiaries in local clusters: Embeddedness or isolation?

Abstract

Despite the spread of globalisation, industrial clusters remain vibrant spaces for the generation of knowledge and innovation. This has attracted Multi-National Enterprises (MNE) to collocate their subsidiaries in specific geographic spaces and clusters in order to exploit the local resources in the territory. This paper investigates the case of the Valencian Toy Valley Cluster in Spain to demonstrate how MNE subsidiaries are integrated in clusters. The results confirm that MNE subsidiaries develop their networking practices within a limit portfolio of local partners, configuring a club of skilled partners, and integrated mainly by specialised suppliers. This research addresses the research questions using two methods of investigation from international management: social network analysis and non-parametric tests.