Bridging the local–global divide: strategic embedding in the alpine wool sector

Regional development has long been understood through its integration into global economies. Recent global crises have challenged this view, prompting new debates on fragmentation and the spatial reorganisation of production. Within global production network (GPN) debates, regional assets and their strategic value for transnational corporations (TNCs) are considered central to development. Our empirical case of Alpine wool illustrates an economic constellation that has experienced abandonment by TNCs, which has resulted in the strong economic devaluation of regional wool. The present paper explores this disarticulation with a particular focus on regional value creation, TNC power, and embeddedness. Thus, it provides a regionalized perspective on development within a broader GPN context. Specifically, the analysis focuses on the following research question: How can regional economic power unfold after disarticulation beyond classical GPN linkages? Regional lead firms represent a key element in regional adaptation to the effects of disarticulation and segmentation. Their initiatives aiming to revalorize Alpine wool through new, multi-scalar networks provide a new basis for regional value creation, thereby providing an empirical example of endogenous development potential. The innovation of niche products serves a central role in this setting, which positions disarticulation as a window of opportunity.