Understanding spatial networking and industrial district evolution from firms’ strategies

ABSTRACT

Positioned in the study of firm heterogeneity in industrial districts (IDs), this study analyses how mergers and acquisitions (M&A) differ between local and non-local acquirers, impacting district evolution. Focusing on the Castellon ceramic tile district transformation, from acquisitions over 2012–2022, M&A and their implication for the local district are discussed, cross-fertilizing strategy and IDs literatures. Findings, from using mixed-methods, reveal that in IDs, the M&A process remarkably differs between local and non-local firms. While local firms tend to specialize in the related focal business, targeting local acquisitions to achieve internal synergies from a better valuation and integration of acquisitions, foreign firms seek access to tacit knowledge through relational and network synergies through diversification. Effects on the territory from M&A are also discussed.

KEYWORDS:

• Industrial districts
• Marshallian socio-economic context
• strategy
• synergies
• mergers & acquisitions

Acknowledgements

We acknowledge PEIV representatives from ASCER; interviews with ITC members; all informants participating, especially Mr Jose Luis Lanuza (Victoria PLC, Keraben); Fernando J. Tomas Badenes (EFI) and Carlos Gil (Keros), among many others.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 Ascer data (www.ascer.es) and own calculation through SABI database.

2 The cluster provides around 20,000 direct jobs (in 2020, before Covid) and there are around 300 firms in total, accounting for ceramic tile (120), equipment (60) and glazing (20), plus other related industries (packaging, logistics, marketing, etc.) (PEIV, 2018); see also www.ascer.es (industry statistics). See also Hervas-Oliver, J. L., & Parrilli, M. D. (2017). Networks of clusters within global value chains: the case of the European ceramic tile districts in Spain and Italy. In Local Clusters in Global Value Chains (pp. 175-192). Routledge

3 Published as PEIV (2018); Valencian Manufacturing Strategic Plan, see more here: http://www.indi.gva.es/es/web/industria-e-i-d-i/estrategia-politica-industrial;

4 https://cindi.gva.es/documents/161328133/164106546/Plan±Sectorial±CER%C3%81MICO±2018.pdf/087f3225-b727-4985-9ef3-45c34120a0c2 Results from the PEIV sessions.

5 https://cincodias.elpais.com/cincodias/2021/12/17/companias/1639733561_157294.html

6 https://www.eleconomista.es/empresas-finanzas/noticias/11602260/02/22/Rentabilidades-del-20-atraen-a-los-grandes-fondos-de-capital-privado-al-sector-ceramico.html; https://www.investinspain.org/es/noticias/2021/carlyle-altadia

Additional information

Funding

Financial support from AICO2020/123 (Generalitat Valenciana); RTI2018-095739-B-100 (Ministerio de Ciencia, Innovación y Universidades, AEI/EU Feder); PID2021-128878NB-I00 (Ministerio de Ciencia, Innovación y Universidades, AEI/EU Feder).