The territorial embedment of global industrial networks. Theoretical insights and evidences from foreign MNCs’ affiliates in Turin (Italy)

In the paper the concept of territorial embedment is introduced as a relevant theoretical and analytical tool in the investigation of the complex system of mutually constitutive relationships between firms and territories (the “firm-territory nexus”). My reading of the literature, coupled with empirical findings and interviews with a selection of affiliates companies from foreign MNCs, localized in Turin (Italy), led to the assumption that territorial embedment is the result of a process of local anchorage evolution, enabled by three major conditions: i) local networking; ii) collective action; iii) strategic commitment. As a consequence, embedment can provide more relevant feedbacks to the territorial capital of the host system than anchorage: the anchored firm is influent only to “traditional” components of the territorial capital; the embedded one, on the contrary, can contribute to all the components, both “traditional” and “innovative”. Yet, this condition it is far more difficult to occur. Consistent with this, local actors such as investment promotion agencies (IPA) can play a major role in preparing, once the foreign-owned company has settled, the enabling conditions to turn anchorage into embedment. Key-words. Multinational companies, anchorage, embedment, firm-territory nexus