Territorial marketing: interaction between industrial
and regional networks Ricardo Alexandre Fontes Correia Published online: 17 February 2011 # Springer-Verlag 2011 Abstract This is a summary of the author's PhD Thesis, supervised by Professor Carlos Brito, and defended on December 21, 2010 at the Faculty of Economics of the University of Porto (Portugal). The thesis is written in Portuguese and is available from the author upon request. The research deals with the reciprocal influence between firms and regional dynamics. The study puts in evidence that the relationship between firms and regions is specific and dependent upon particular features, thus, impossible to replicate in other contexts. It also suggests that regional dynamics are mostly reliant upon intangible factors and networks interactions taking place at various scales, and not on circumscribed material components. Such specificity renders fragile the literature associated to the traditional stand of economic geography and clusters' theory. These results provide regional admin- istrations with a new perspective for the territorial promotion. Keywords Regions . Industrial networks . Relational geography . Interaction . Relations . Firms . Territorial marketing Regional dynamics depend on several events which overcome their own geograph- ical borders. Such events are mainly played by firms, which register the dynamic and the territorial structure to their action. Firms create inter-organisational networks that connect them with other actors located in several scales. Therefore, their web of relationships influences the territorial structure and dynamics. Simultaneously, the space is not a neutral element as the territorial features influence the strategic action of companies in different ways. This interactive relationship between firms and regions is not yet totally explained by the traditional stand of economic geography and clusters theory that mainly focuses on the analysis inside the region and are Int Rev Public Nonprofit Mark (2011) 8:9395 DOI 10.1007/s12208-011-0064-y R. Alexandre Fontes Correia (*) Escola Superior de Comunicao, Administrao e Turismo, Polytechnic Institute of Bragana, Apartado n 128, 5370-326 Mirandela, Portugal e-mail: ricardocorreia@ipb.pt based upon a list of material resources that should be available to the firms therein located. This doctoral thesis aims at analysing how the strategic action of firms is reflected on the dynamics and regional structure, and how these regional factors affect firms actions. The thesis is structured in seven chapters. The first three chapters outline the conceptual framework on which the doctoral research is based on. In Chapter 1, devoted to the introduction, the state of art between regions and firms influence is analysed. This analysis results in the detection of issues that are not satisfactory explained by existing literature, which contextualize and reinforce the urgency of the topic developed in this thesis. Chapter 2 addresses regional studies under the perspective of the relational geography approach, which challenge the traditional vision of the regional management and economic geography. The network approach is highlighted by this new trend of literature on relational geography, as particularly suited for the comprehension of multiple interactions between actors located in different territories that become visible in particular places. This chapter also underlines the important regional role conferred to the firms by the relational geography, which proposes an approach between spatial and economic management. The third chapter reviews the process of firms interactions from the perspective of the Industrial Networks approach. This theoretical contribution clarifies firms interaction and strategic action that constitute one of the most important factors for regional dynamics that is highlighted, but not sufficiently explained by the relational geography. The interaction processes is here divided in episodes and relations, and firm strategic action considered dependent upon firms network theories, their position in the network as well as their resources. Industrial networks are also described in terms of three basic variables: actors, resources and activities. Additionally, the recent industrial network approach contributions to the spatial analysis are reviewed, thus reinforcing and complementing the research obtained from the relational geography. In the fourth chapter, the previously mentioned theoretical approaches are summarised and related, and their limitations identified. The main aim of the thesis is here divided in three questions of analysis that are reflected on the theoretical model aimed at answering what has been detected as issues remaining unclear in the mutual influence between regions and firms. The conceptual model developed in this chapter connects three different levels: the focal firm, its network of relations, and the territory dynamics and structure. It assumes a dominant position during the empirical work developed in the following chapters. The fifth chapter presents the methodological choices adopted for the empirical research guidance. Due to its capacity to reflect the dynamics of the phenomena under study and suitability to other determinants resulting from the theoretical constructs, a qualitative methodology with multiple case studies was followed. The empirical field of research was based on six cases of focal firms located in different regions of Portugal and Spain. Ikea-Swedwood, Aquapura hotels and the Aveiro port administration were the selected firms located in diverse Northern Portugal regions. Coren, Cortizo group and Cabreiro are the ones located in different regions of the Spanish Northern Province of Galicia. 94 R.A.F. Correia Chapter 6 is the most extensive of this doctoral thesis. It describes and examines each of the six different cases according to the theoretical constructs identified in the theoretical review and translated in the model. It also offers a comparative analysis of the cases, from which the differences between the reciprocal influence processes of each firm and territorial dynamic, derive as clear. Firms result fairly diverse from this analysis. Even within the same economic sector their way of acting is different and such difference is reflected on the way their relationship network articulates in various regions. Furthermore, regions are also fairly heterogeneous in their characteristics and have specific features and development paths that to different extents influence the firms strategic action and relationships network. The last chapter, devoted to conclusions, contains the main results of the research, coming from the comparison between the empiric patterns with the ones expected from the previous theoretical constructs. Theoretical contributions as well as suggestions for further research are also presented in this chapter. Additionally it contains several recommendations related to regional management that public authorities can adopt in order to improve the dynamics and attractiveness of the regions under their supervision. Territorial marketing 95