ABSTRACT

This chapter explains the dynamics and focuses on the change and development of the cluster during structural changes originating in ownership and structural changes within a large lead firm, which had become part of an agglomerated globally acting multinational enterprises (MNE). It shows how clusters transform when the lead firms shift between the managerial approaches. In parallel, International Business researchers have been long interested in and have analyzed the organization of MNE and their networks. These networks also consist of small and medium-sized firms, some of which are entirely focused on their regional or local markets. In order for a cluster to transform, the knowledge base should evolve through innovation. Domsjo Fabrikermay need to defend its innovation activities to an owner who requires a strong focus on the certainties provided by their global value chains, with a major focus on generating efficiencies to feed the MNE’s own internal value chains.