Does geography matter for inter-firm cooperation in marketing ? evidence from Chile and Scotland

This study develops the concept of and extends the research into the beneficial effects accruing from regional industry clusters by exploring the role of geographic co-location and the influence of social networks in the development of firm-level marketing externalities. The theoretical position underpinning this study assumes that entrepreneurial influences (for example, the acquisition of social capital and the use of networks), rather than geographical co-location, are more important in the development of inter-firm cooperation (Van Dijk and Sverrisson, 2003; Lechner and Dowling, 2003). Moreover, entrepreneurial influences are likely to increase in future importance, as communication technologies, used to build networks between firms, are changing the rules of geography and co-location. Data for this study was collected in two main stages. Semi-structured personal interviews (during 2003 and 2004), based on a purposeful sample of twenty-two companies in two regions in Scotland and two regions in Chile drawn from a single industry, salmon farming, a sector that makes a substantial contribution to the remote-rural and regional economies of both Scotland and Chile. Stage two entailed a postal questionnaire survey and follow-up process during 2005, to the total population of companies involved in the main value chain activities of this industry (N=229) in the two participant counties. The results show that geographical co-location is not the key issue for marketing cooperation, besides social networking is considered important. Both the general business culture of the country and the ́special ́ characteristics of specific regions within countries affect cooperative behaviour, creating a special environment which manifested a complex mix of co-operation and competition