Configurations of externalities within a country-of-origin cluster in China: A qualitative comparative analysis

Urzelai, Berrbizne; Francisco, Puig; Miguel, Gonzalez- Loureiro

Abstract

This paper explores several configurations of host-market locational factors and the ethnic cluster's potential to generate externalities when MNEs invest in distant countries. We perform a qualitative comparative analysis (QCA) of externalities and spillovers in Spanish and German subsidiaries after a period of operations in Kunshan, China. By analyzing the managers' perceptions of those configurations, we shed light on the singular features of this type of clustering.
The networking externality, a consequence of social interactions among expatriates, was present in virtually all the subsidiaries located in a country-of-origin cluster. This externality differs from those generated in economic clusters, which are based on the productive specialization (knowledge) and/or the firms' diversity (information) in certain territory. Our study contributes to research on the effect of country-of-origin cluster giving academic legitimization to this type of geographic agglomerations of multinationals, which is an alternative to other agglomerations such as industrial clusters and global cities.

• Presentation Conference Type: Conference Paper (unpublished)
• Conference Name: 47th EIBA Annual conference: Firms, Innovation and Location: Reshaping International Business for Sustainable Development in the Post-Pandemic Era
• Start Date: Dec 10, 2020
• End Date: Dec 12, 2020
• Deposit Date: Apr 26, 2022
• Public URL: https://uwe-repository.worktribe.com/output/9314349
• Publisher URL: https://www.eiba.online/