Neo-Marshallian Nodes, Global Networks and Firm Competitiveness: The Media Cluster of Central London

Abstract

The recent emphasis by some business scholars on processes taking place within locally-embedded production systems seems to undervalue the dynamics of global competition and the role played by TNCs in mobilising tangible and intangible assets across localised clusters. Using the external linkages of firms as the theoretical framework, this paper examines the interplay between global and local influences on the competitiveness of the cluster of media firms in Central London. The main findings are that the locality indeed plays a vital role in influencing the capabilities of these firms, but it is by no means the only relevant geographic area. This localised cluster is bound tightly into world-wide webs of interdependence, with TNCs playing a major role in mediating between local and global linkages. The latter are vital for the ability of the firms studied to compete successfully in international markets.