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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 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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