MNE linkages and localised clusters: foreign and indigenous firms in the media cluster of Central London

Abstract

This study examines the operations of multinational enterprises (MNEs) in clusters in an effort to gain insight into the impact of cluster participation on the organisation of international activities and the generation of competitive advantages. Drawing upon the theories of international business and management, in combination with lessons from clustering and networking theories, the study examines the linkages of foreign affiliates in the media cluster of Central London, using indigenous firms in this cluster as the yardstick for comparison. This examination suggests that the major factor affecting the advantages accruing to MNEs from cluster participation is the extent to which internal linkages within MNEs substitute for local cluster linkages.