Spatial and non-spatial proximities in inter-firm relationships: an empirical analysis
Abstract
This article describes a variety of combinations with regard to proximities (spatial and non-spatial) in inter-firm relations, and identifies their main determinants. The data employed comes from a survey of more than 1400 small and medium-sized firms in the Brittany region (France), which describe the relationship with their principal partner. Apart from spatial distance between partners, it identifies three forms of non-spatial proximity - cognitive, technological and organisational - which are assessed in terms of their role in the relations. We begin by showing that these three forms of proximity primarily depend on the need for coordination. We then observe that they are closely linked, whereas the links with spatial proximity are more complex, unrelated to either complementarity or substitution. A typology of the relationships based on forms of proximity identifies a wide variety of configurations, which depend more on the history and nature of the relationship than on firm characteristics.