New MNE subsidiaries in old clusters: when, why, and how

Despite the rise of globalization, industrial clusters remain vibrant spaces for the generation of knowledge and innovation. Aware of this reality, multinational enterprises (MNEs) seek to reconcile the advantages of international operations with the specific endowments of individual territories. By studying the case of the Inditex subsidiary in the Vinalopó footwear cluster, this research shows how the creation and activity of a specialized subsidiary and the evolution of the industrial system interweave. The study shows that, rather than agglomeration per se, access to specific resources guides location as the cluster matures. Furthermore, local embeddedness shapes post-entry dynamics at the micro and meso levels. Autonomous decisions boost the subsidiary’s access to local networks and the exploitation of cluster advantages, aiding the resilience of the cluster by contributing extra-cluster knowledge.