TNC LINKAGES IN LOCALISED CLUSTERS Foreign and indigenous firms in the media cluster of Central London.

Abstract

This study seeks to extend the theory of the origins of TNC competitive advantages by incorporating the impact of cluster linkages and examining the way in which they affect internal linkages within TNCs. Drawing upon the theories of international business and management, combined with lessons from clustering and networking theories, the study examines the cluster 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 TNCs from cluster participation is the extent to which internal linkages within TNCs substitute for local cluster linkages.