ABSTRACT

The role of multinational corporations in clusters is a growing topic in the literature (Santangelo 2009; Mudambi and Swift 2012; Sedita et al. 2013; Mudambi and Santangelo 2015). MNCs are increasingly locating their activities within clusters in various countries and thereby affecting the dynamics of the clusters (Birkinshaw and Hood 2000). The entry of MNC subsidiaries is often seen as something positive, since they bring in new resources to the cluster and provide access to global networks (Giuliani et al. 2005; De Propris and Driffield 2006). The MNC subsidiaries especially allow the cluster as a whole to be connected to other clusters in a similar field across the world, which is becoming increasingly important for achieving global competitiveness (Mudambi and Swift 2012). However, MNCs could also have negative influences on the cluster. For one thing, they are well known for being footloose in times of crisis (Görg and Strobl 2003; Østergaard and Park 2015). In addition, the MNC subsidiaries’ participation in local networks and their ability to choose their own technological search depend on the mandates that the subsidiaries have (Cantwell and Mudambi 2005; Østergaard and Park 2015; Mudambi and Santangelo 2015). This suggests that MNCs might have a dual role in cluster evolution in that they could exert both positive and negative impact over time.