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ISSN 2340-5457 Volumen XII (2019) http://www.unex.es/eweb/monfragueresilente THE ROLE OF ALLIANCES ON THE SHAPING OF THE MODERN INTEGRATIONAL AND COOPERATION PATTERNS: NETWORKS, CLUSTERS AND THEIR MULTI-SECTORAL ENVIRONMENT. A BRIEF REVIEW EL PAPEL DE LAS ALIANZAS SOBRE LA FORMACIÓN DE LOS MODELOS INTEGRACIONALES MODERNOS Y LOS PATRONES DE COOPERACIÓN: REDES, CLUSTERS Y SU ENTORNO MULTISECTORIAL. UNA BREVE REVISIÓN Dr. Rui Alexandre Castanho 1,2,3,4,5 Revista Científica Monfragüe Resiliente. http://www.unex.es/eweb/monfragueresilente Editada en Cáceres, Dpto. Arte y Ciencias del Territorio de la Universidad de Extremadura. Elaborada conjuntamente con las Universidades de Lisboa y la Autónoma de México Recibido: 2/02/2019 Aceptada versión definitiva: 3/05/2019 1 Faculty of Applied Sciences, WSB University, 41-300 Dąbrowa Górnicza, Poland 2 VALORIZA - Research Centre for Endogenous Resource Valorization, Portalegre, Portugal 3 Institute of Research on Territorial Governance and Inter-Organizational Cooperation, 41-300 Dąbrowa Górnicza, Poland 4 Environmental Resources Analysis Research Group (ARAM), University of Extremadura, Badajoz, Spain 5 ICAAM—Institute for Agrarian and Environmental Sciences, vora, Portugal.

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Page 1: THE ROLE OF ALLIANCES ON THE SHAPING OF THE MODERN …€¦ · the role of alliances on the shaping of the modern integrational and cooperation patterns: networks, clusters and their

ISSN 2340-5457 Volumen XII (2019)

http://www.unex.es/eweb/monfragueresilente

THE ROLE OF ALLIANCES ON THE SHAPING OF THE MODERN INTEGRATIONAL AND COOPERATION PATTERNS: NETWORKS,

CLUSTERS AND THEIR MULTI-SECTORAL ENVIRONMENT. A BRIEF REVIEW

EL PAPEL DE LAS ALIANZAS SOBRE LA FORMACIÓN DE LOS MODELOS INTEGRACIONALES MODERNOS Y LOS PATRONES

DE COOPERACIÓN: REDES, CLUSTERS Y SU ENTORNO MULTISECTORIAL. UNA BREVE REVISIÓN

Dr. Rui Alexandre Castanho1,2,3,4,5

Revista Científica Monfragüe Resiliente. http://www.unex.es/eweb/monfragueresilente

Editada en Cáceres, Dpto. Arte y Ciencias del Territorio de la Universidad de Extremadura. Elaborada conjuntamente con las Universidades de Lisboa y la Autónoma de México

Recibido: 2/02/2019 Aceptada versión definitiva: 3/05/2019

1 Faculty of Applied Sciences, WSB University, 41-300 Dąbrowa Górnicza, Poland 2 VALORIZA - Research Centre for Endogenous Resource Valorization, Portalegre, Portugal 3 Institute of Research on Territorial Governance and Inter-Organizational Cooperation, 41-300 Dąbrowa Górnicza, Poland 4 Environmental Resources Analysis Research Group (ARAM), University of Extremadura, Badajoz, Spain 5 ICAAM—Institute for Agrarian and Environmental Sciences, Evora, Portugal.

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RESUMEN

Los cambios de la sociedad actual pueden ser entendidos como consecuencia de

acciones pasadas y eventos de relaciones económicas y sociales. En el ambiente

internacional, las alianzas estratégicas pueden desencadenar un proceso duradero de

transformación de las ciudades fronterizas en Eurociudades, como ejemplo. De hecho,

las redes empresariales y los entornos de clúster más fuertes se crean a través de

proyectos, estrategias y sinergias de cooperación y viceversa. A lo largo de este breve

estudio, es posible verificar la dinámica y los patrones seguidos por las relaciones

internacionales. Por tanto, las alianzas podrían entenderse como un catalizador para

desarrollar redes más complejas, agrupaciones y círculos de interacción y relaciones.

Además, y teniendo en cuenta factores como la globalización y los fenómenos

crecientes de la cooperación transfronteriza, principalmente, en territorios europeos,

todas las temáticas evolucionan hacia un entorno multisectorial. Además, y sobre la

base de las nuevas tendencias como la economía circular verde o el desarrollo

sostenible, es de esperar que los patrones y las pautas que rigen esas tipologías de

estrategias, proyectos y/o tecnologías se orienten hacía los principios de

sostenibilidad.

Palabras Clave: Alianzas; Ambiente Multisectorial; Cooperación; Globalización;

Relaciones Estratégicas.

ABSTRACT

The actual society shifts could be understood as a consequence of past actions and

events of economic and social relationships. In International environment, strategic

alliances can trigger a long-lasting process of transforming border cities into Eurocities,

as an example.

In fact, stronger business networks and cluster environments are created through

Cooperation projects, strategies, synergies and vice-versa.

Throughout this brief study, it is possible to verify the dynamics and patterns followed

by international relations. Therefore, alliances could be understood as a catalyst to

develop more complex networks, clusters and interactions circles, and relations.

Besides, and bearing in mind factors such as globalization and the increasing

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phenomena of Cross-Border Cooperation, mainly in European territories, all the

thematic evolves into a multi-sectorial environment.

Moreover, and based on the new trends as the green circular economy or the

sustainable development, it is expected that the patterns and guidelines that rule those

typologies of strategies, projects, and or synergies will be towards sustainability

principles.

Key Words: Alliances; Cooperation; Globalization; Multi-Sectoral Environment;

Strategic Relationships.

1. INTRODUCTION

Humankind has been changing the processes of interaction and interrelations

throughout history, which have led to the transformation of the geopolitical and

cooperative map – and, in fact, continue to influence such design (Permann, and Sum,

2002; Martins, 2015).

In this regard, the establishment of alliances, the Cooperation among nations – the so-

called Cross-Border Cooperation (CBC) – the different typologies of networks and in a

smaller scale the clusters have been critical to shaping the actual interrelations

between states and people, as well as to shape the society as a whole (Suchacek,

2011; Lorenzen, and Mudambi, 2015). Moreover, and considering the actual scenario

these synergetic and strategic collaboration channels are strictly connected to the

urban, regional and territorial socioeconomic dynamics – and consequently with their

success or failure (Castanho et al., 2018; Kurowska-Pysz, Castanho, and Loures,

2018).

Therefore, the actual society shifts could be understood as the consequence of past

actions and events of economic and social relationships (Martins, 2015; Castanho,

2017).

Contextually, the present study aims to perform a brief revisiting to concepts such as

alliances, globalization, networks, clusters, and Cross-Border Cooperation (CBC); as

well as to foster the discussion on how these interrelations have shaped and still

shaping the geopolitical and strategic cooperation synergies. In addition, the study

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aims to briefly highlight the new trends regarding the thematic as the multi-sectoral

environment for those typologies of agreements.

2. THE ALLIANCES

An alliance is a complex term to define, considering the several definitions and

concepts put forward along history. Considering the typology of alliance it also could

be seen has an additional complexity for the theme – i.e. strategic, joint venture,

consortia, economic, social, etc. In this context, some definitions will be presented

below, according to their authors:

to Porter, (1990): “Strategic alliances are long-term agreements or short-term

alliances among enterprises, which are more important than ordinary market

transactions”.

to Gulati, (1998): “Strategic alliance is a voluntary agreement among enterprises

including exchange or division of product, technology or services development”.

to Lorange and Roos, (1993); Mockler et al, (1998); or Das and Teng (2000):

“Alliance is a cooperation between two or more enterprises, which helps to

realize objectives and to gain competitive advantage”.

to Contractor and Ra, (2000): “Alliance is a contractual action between two or

more enterprises related with business risk management“.

to Barringer and Harrison (2000): “Alliance is an agreement between two or

more enterprises based on exchange and the common property is not created”.

to Standifer and Bluedorn, (2006); Gomes-Casseres, (2008); or Holmberg, and

Cummings, (2009): “Alliances might be referred to as a mutual reliance among

enterprises and they allow to achieve competitive advantage, exchanging

information and resources”

Despite all the definitions, they all semm to merge in the sense that an alliance is a

relationship in which two countries, political parties, or organizations work together for

some purpose.

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In fact, and if we explore the work of Kinderis and Jucevicius (2013), there is no

common conception of alliance or strategic alliance, but it is possible to notice some

similarities and note that both alliances and strategic alliances are: (i) voluntary

agreement for free exchange, cooperation and mutual relations without common

property; (ii) they seek mutual benefit that is based on trust, partnership and risk

management while enterprises retain their own autonomy; (iii) particular union of

enterprises in order to achieve established strategic goals and increase market

competitiveness ; (iv) new regime in the relations of enterprises - helps forming new

business models and thesemodels might decrease activity duplication and expenses;

furthermore, it creates favorable conditions for Efficiency development (Kinderis and

Jucevicius, 2013).

If focusing on an International context, for example, strategic alliances can initiate a

long-lasting process of transformation of border cities into Eurocities. This should relate

to the process of mutual resource compensation , of potentials, and spatial

transformations of the areas to create a high-quality offering for residents and other

target groups. To achieve that goal, the establishment of alliances in agglomerations

by territorial self-governments and by cultural, research, business, and educational

institutions as well as cooperation and collaboration between these local and regional

actors is fundamental (Kurowska-Pysz, 2016; Szczepanska-Woszczyna, Kurowska-

Pysz, 2016; Kurowska-Pysz, Castanho, and Loures, 2018).

Therefore, Alliances can lead to the reduction of uncertainty and an increase in the

flexibility of cooperation. They also relate to specific thematic projects implemented in

a bilateral or networked system, with the involvement of various actors. Nowadays,

due to the occurrence of non-economic crises and increasing environmental problems,

alliances also include sustainability competences related to the simultaneous

implementation of economic, social, and environmental goals (Kurowska-Pysz, 2016;

Kurowska-Pysz, Castanho, Naranjo Gomez, 2018). So, alliances could be seen as

strategy which always fosters to create win-win-situations.

2.1. ALLIANCES IN AN EUROPEAN CONTEXT

Historically, Europe is fertile territory for interactions and relations among people and

nations. In fact, some of the first alliances were established in historic Europe.

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Focusing on a Modern European context, there are several examples of alliance in EU

territories. According to Netherlands Chamber of Commerce, (2018): “Europe consists

of fifty recognized sovereign states, most of which are members of one or more legal

or trade associations, cooperation's or unions. The focus of these organizations is to

make it easier for member states and their citizens to travel and trade with each other;

for instance, customs checks are more lenient, or persons can travel and stay in each

other's countries”.

For instance, we could mention examples such as: Benelux; European Union (EU);

Schengen Area; European Economic Area; Council of Europe; European Free Trade

Association (EFTA); Nordic Council; Visegrad Group; Baltic Assembly; Black Sea

Economic Cooperation (BSEC); GUAM Organization for Democracy and Economic

Development; Central European Free Trade Agreement (CEFTA); Common Travel

Area; Union State; among many others.

2.2. FROM NETWORKS TO CLUSTERS

Bearing in mind all the synergies and interactions created by the alliances, an

opportunity to develop networks has arisen – which has as catalyst the Alliances

creation.

Thus, a Network could be understood as complex system with well-defined rules for

the optimization of local and regional resources – chasing common goals; in fact, a

network embodies a set of relationships between different entities having the same

interests (James, 1993). Similar to what occurs with Alliances, Networks are a complex

term to define – it also has more complexity if we add their typologies: Trade networks;

Credit networks; Corporate networks; Internal company network structures; Innovation

networks and regional clusters; just as a few examples (Kurowska-Pysz, and Walanci,

2017). In this regard, some definitions (examples) will be presented below:

to Brilman (2002): “The network is a set of measures and rules that allows the

entities that have access to them, making an implementation of joint projects”

to Borowicz, et al. (2009): “Network economy is characterized (among others)

by the increasing number of links and cooperation between organizations,

based on synergistic benefits and optimization of use of available resources”

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to Pachura, (2009): “It is sometimes referred to as a set of autonomous

organizations with direct or indirect relationships arising from the agreements

(alliances) between participants”

Therefore, the network approach has become increasingly popular in business and

economic history and has resulted in numerous historical network studies (Marx,

2012). Alongside, the evolution of different networks results from the multiplicity of

relationship structures (Marx, 2012). In fact, the increasing of networks and their

specialization breaks ground to the emergence of the concept of Cluster.

In the modern, knowledge-based economy, the increasing tendency to the formation

of clusters, networks, as well as the deepening of integration within the territorial

partnerships – i.e. the stakeholders of Euroregion Cieszyn Silesia (Kurowska-Pysz,

Castanho, and Mora-Aliseda, 2018). According to Porter (1979): “An economic cluster

is a dense network of companies and institutions in a certain geographic sphere. An

economic cluster that is based on the region's unique assets is an appropriate structure

through which to promote regional leapfrogging”. Thus, an economic cluster is a dense

network of companies and institutions in a certain geographic sphere - Clusters are the

result of dense networks.

Moreover, clusters present several benefits for the regions where thei are

implemented, as: (i) reducing business transaction costs; (ii) creating social capital; (iii)

increasing resilience to a changing reality; (iv) closing 'short circles', accelerating

innovation; (v) adding value to the whole entity; (vi) creating conditions for competition

based on innovation; (vii) establishing foundations for coopetition; and (viii)

strengthening relations between central government and business sector.

In fact, clusters have several interactions with the main-actors’/decision makers –they

play a pivotal role as a bridge between central government and business sector. Thus,

they could present an advantage, mainly in border areas, to act as catalyst to an

international relationship through a CBC project, for instance.

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3. GLOBALIZATION – A BRIEF OVERVIEW

It is well-known that the origin of globalization dates back to the 15th century, during

the mercantilist period – when many European nations had departed into the sea,

searching for new territory and wellbeing. Afterwards, in the 18th century, it was

characterized by an even greater increase in flow of labor strength between nations

and empires - particularly in the new European colonies in Africa, Asia, and Americas.

Through the new relations and interactions that the European people have established

with other continents, this lead to major changes in the society as a whole, such as:

political, geopolitical, economic, social and cultural. Through currently established

relations, the world has become connected in a stronger and agile way – enabling all

nations and people to take advantage almost immediately from the technological,

medical and cultural advances that take place on the other side of the globe.

Highlighting the Modern framework a milestone for globalization has been the End of

the Cold War. Since then, the world was no longer divided by an ideological barrier.

The countries that were part of the communist bloc would adopt liberalism and

capitalism as a form of government and economic policy. Besides, Neoliberalism

emerged, and with it has the strengthening and steering of the process of economic

globalization throughout the continents (Bezerra, 2019).

It should be further highlighted the Post-Fordist era. With the post-Fordist model, new

models of socioeconomic development based on Information and Communication

Technologies were developed. In fact, these paradigms caused, and are still causing,

a profound territorial structural change – i.e. once it allowing to complete the historical

process of territorial expansion; spread throughout the planet and is known as

globalization (Esser and Hirsch, 1989; Veltz, P. 1996; Castanho, Kurowska-Pysz, and

Naranjo Gomez, 2019). In this regard, nations moved to a situation in which the forms

of accumulation and the relations between consumption and production have tended

and still tend to unfold in a more decentralized, but also in a more interconnected way

(Filion, 1996). Therefore, this restructuring originated in the core of developed

countries – mainly in cities or metropoles. Furthermore, the many and varied

consequences spread on a global scale, affecting different spheres of human society

(Esser and Hirsch, 1989; Goodwin and Painter, 1996; Brenner, 1998) such as: (i)

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mobility and information flows; (ii) production typologies; (iii) consumption patterns; (iv)

working conditions; (v) dynamics of social organization; and (vi) lifestyles standards.

Contextually, the transformations had their consequences on the territory producing

an intense territorial reordering, but also an important segmentation, fragmentation,

and territorial specialization - moving from large urban areas and redistributing

elsewhere in a less centralized form. In fact, new urban systems arise with a regional

character organized in networks—with several centers, a reticular structure, giving way

to new urban landscapes (Brenner, 1998; Castanho, Kurowska-Pysz, and Naranjo

Gomez, 2019).

All things considered, Globalization is a process of deepening economic, social,

cultural and political relations among the peoples around the world - characterized by

the absence or reduction of economic and immigration barriers between countries

(Bezerra, 2019).

4. THE MULTI-SECTORAL ENVIRONMENT AND THE NEW TRENDS

For many academics, Globalization strives and enables reaching a multi-sectoral

environment. According to Giddens (2002): “That is due globalization including

economic, political, and sociological perspectives. Similarly, there has been debate on

whether globalization is happening and the degree to which it is impacting on

individuals and societies”

With this in mind, focus on the globalization of business is necessary. This entails that

business planning at all levels now requires knowledge that is both local and global.

Understanding local regulatory requirements is as relevant as global considerations of

economic activity when setting out the strategic corporate goals (Too, Harvey and Too,

2010). Moreover, those changes, partly due to globalization, have impacted on

international businesses environment and hence strategies must be designed to help

Multinational Corporations or Companies (MNCs) to overcome barriers and prosper in

the global market (Ionescu and Dumitru, 2011).

According to Zou, and Cavusgil, (1996): “The advances in communication and

transportation technologies and increased worldwide travel have homogenized world

markets. Increasingly, consumers in different parts of the world tend to demand the

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same products and have the same preferences. In this new era, the strategic

imperative for businesses competing globally is to achieve the economies of scale

which the global market affords”. Thus, it is plausible to say that globalization has

implications not only in international relations and business, but also to foster a multi-

sectorial environment. Some of those implications are: technology standards becoming

global; homogenization of customer needs; increasing competitive intensity;

competing with a wide variety of competitors; international business education

gainning more emphasis; fostering a scale economy; increasing some typologies of

Alliances in relation to others; such are a few to name.

Considering involving more than one industry sector, economy, partner (country,

company, stakeholder) a multi-sectoral environment emanates – due to globalization.

Along with this multi-sectoral environment, the issues associated with it start to be

addressed from various perspectives and in a multidisciplinary manner. In

consequence, factors that impact multi-sectoral collaboration in international, regional

and local economic development should be considered. Particularly in an International

Cooperation model, hot topics/new trends as the green and circular economy or the

Sustainable Development should be more carefully addressed.

For example, in CBC environment those issues should be deeply focused. In fact, and

considering the sustainable development, which according to the (UN, 1992): “is the

development that meets the needs of the present without jeopardizing the capacity of

future generations to meet their own needs”; not only is pivotal to reach a Sustainability

but it will also help both parties in creating the desired win-win-situations through

common efforts and defined goals.

5. THE CROSS-BORDER COOPERATION (CBC)

In recent decades, the issue of border areas has acquired a strong presence on the

international scene due to its integration potential and its supranational functions, such

as the one that exemplifies the unification of Europe (Batista et al., 2013; Kurowska-

Pysz, Castanho, and Loures, 2018; Castanho et al., 2018; Castanho, Kurowska-Pysz,

and Naranjo Gomez, 2019; Loures et al., 2019).

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In fact, a decrease in conflicts has been visible thanks to the demarcation of political

borders (Martins, 2015). Nevertheless, in view of the recent events this issue could be

the subject of debate, such as the awakening of old conflicts back from the Cold War

and the Second World War times, the Russia - Crimea (Ukraine) conflict, the recent

Brexit (Dale, 2016, Holmes, 2016) among many other issues that are raising daily on

the EU and where CBC could have a critical role to solve them.

Still, one should consider that the experiences of CBC have spread not only in Europe

but throughout the world, creating a global network of relationships between people,

always trying to create the mutually beneficial scenarios. This combines the topics

debated previously.

Bearing in mind those scenarios, an example was the formation of the EFTA Alliance

(European Free Trade Association), on January 4, 1960, by Austria, Denmark,

Norway, Portugal, the United Kingdom, Sweden and Switzerland, which was not they

had joined the "Common Market", the establishment of a free trade zone in which

products imported from member states were not subject to the payment of customs

duties, which has facilitated trade between territories in the European space.

In this regard, we also have the Alliance of the Schengen Area, where commercial

relations between territories flow in a smooth and dynamic way. In 1985, five Member

States of the European Union decided to abolish controls at their internal borders, the

so-called hard borders (Castanho, 2017).

At the European level, CBC is also increasing. For example, the cooperation between

the cities of Bratislava (Slovak territory) and Vienna (Austrian territory), where the

former, thanks to this cooperation, is one of the cities in the Central European countries

that have a higher and faster rate of growth (Spirkova & Ivanicka, 2009; Loures et al.,

2018) and the stronger business networks and cluster environments created through

that CBC project. In fact, the examples of strong business networks and cluster in CBC

environment are several – i.e. Venlo-Dusseldorf; Aachen-Liege; Copenhagen-Malmo;

among many others(Castanho, 2017).

6. FINAL REMARKS

Through this brief study it is possible to verify the dynamics and patterns followed by

international relations. Taking the alliances as a catalyst, we can observe that through

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networks, clusters, and consequently with factors such as globalization, we are

evolving into a multi-sectoral environment.

It should be noted that CBC are gaining relevance in the actual globalized scenario

and considering their wide scope - once it’s a horizontal process to all spheres and

paradigms of sustainable development and sustainability as a whole; thus, the

international relationships should focus in higher commitment to those goals – i.e.

green, circular economy and sustainable development.

In fact, on an International context, strategic alliances can initiate a long-lasting

process of transforming border cities into Eurocities. This should relate to the process

of mutual compensation of resources, potentials, and spatial transformations of the

areas to create a high-quality offering for residents and other target groups.

It is possible to identify the relevance of the establishment of Alliances in the modern

international and cooperation patterns. Therefore, and bearing in mind all the Alliances

being created and the ones that unfortunately are ending, it is foreseeable how all

these synergies will develop and evolve as well as all the networks and clusters that

they will also enable.

Furthermore, it is possible to extract that the historical and social evolution on the

interactions and relations among people and nations, as demonstrated throughout

time, they can shape those patterns and even how they can influence all the

environment and vice-versa.

AKNOWLEDGMENTS

The author would like to thanks Tiago Borba, Lucía Romero and Lorena Cano Lucas

for their support and advices.

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