City clusters and break-out in corporate competitiveness: Patterns and perspectives focusing on innovation capabilities and India
Abstract
Purpose
The purpose of this paper is to analyze the patterns of location of key activities for break-out in corporate competitiveness. The key objective is to identify linkages that may exist among the location of corporate center activities, innovation capabilities and the break-out.
Design/methodology/approach
Patterns of location of corporate center across the world have been explored first, using sample data from Global 500. For the context of innovation and India, two polar locations were selected. The patterns in the growth of focal firms from the locations were evaluated using select competitiveness criteria such as revenues, profits and assets, based on data of a larger sample from Global 2000.
Findings
Findings support the view on “role of location with innovation clusters” such as Bangalore, particularly for competitiveness of born global firms. Surprisingly, Mumbai has increased its percentage share of contributions in terms of revenues and profits, indicating sustenance of cluster, entrepreneurial and other advantages.
Practical implications
Considering the enormous scope for enhancing contributions of emerging-country multinational enterprises to the world economy, decisions related to break-out in competitiveness are critical. Depending on strategic intent and the role of innovation and internationalization, firms can take better decisions related to the location of specific corporate activities to foster multinational enterprise (MNE) competitiveness.
Social implications
The findings may inspire key stakeholders to take decisions that enhance sustainability of city clusters and communities.
Originality/value
Analyzing the role of location of key corporate activities, for the phenomenon “break-out to higher stages of competitiveness”, is a unique contribution. These concepts and findings can be of high value to firms and MNEs thinking long term about location or relocation of corporate center activities, particularly for innovation.
Keywords
Acknowledgements
The author appreciates very helpful comments and insights from two anonymous reviewers, and Editor-in-Chief Philippe Gugler. The author also acknowledges help from members of “Group on Competitiveness”, particularly Ms Pranusha Manthri and Lalit Lalwani, for data collection and analysis for some elements. Financial support for competitiveness project from Industrial Research and Consultancy Centre (IRCC), IIT Bombay and Ministry of New and Renewable Energy (MNRE), Government of India for the National Centre for Photovoltaic Research and Education (NCPRE) at IIT Bombay is acknowledged.
Citation
Momaya, K.S. (2016), "City clusters and break-out in corporate competitiveness: Patterns and perspectives focusing on innovation capabilities and India", Competitiveness Review, Vol. 26 No. 4, pp. 415-434. https://doi.org/10.1108/CR-08-2014-0021
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited