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Small Businesses Need Strong Mediators: Mitigating the Disadvantages of Peripheral Localization Through Alliance Formation

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  • Krister Salamonsen
  • Jan Terje Henriksen

Abstract

This paper investigates how small entrepreneurial firms in two peripheral regions developed by entering the oil and gas industry. The paper draws on previous studies related to the establishment of strategic alliances and emerging clusters and contributes to these research streams by examining the disadvantages of peripheral localization and small firm size. We use a longitudinal case study based on primary data consisting of 54 in-depth interviews conducted between 2007 and 2012 to illustrate that when large-scale oil and gas projects enter a peripheral region, oil companies can moderate local firms' disadvantages related to peripheral localization by actively facilitating relationships with established national firms. By facilitating such relationships and maintaining an active moderating role, strategic alliances and emerging cluster structures can arise. A cross-case analysis illustrates that the oil company had a decisive role in one of the two cases in two dimensions: its role as intermediary between local firms and national firms and its role in fostering the development of an emerging cluster structure by stimulating the establishment of new firms through the oil and gas project. In the second case, the oil company was unable to facilitate regional development.

Suggested Citation

  • Krister Salamonsen & Jan Terje Henriksen, 2015. "Small Businesses Need Strong Mediators: Mitigating the Disadvantages of Peripheral Localization Through Alliance Formation," European Planning Studies, Taylor & Francis Journals, vol. 23(3), pages 529-549, March.
    • Handle: RePEc:taf:eurpls:v:23:y:2015:i:3:p:529-549
    DOI: 10.1080/09654313.2013.876975
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    Cited by:

    1. Kamińska, Wioletta, 2015. "Dostępność Instytucji Otoczenia Biznesu Na Obszarach Wiejskich W Polsce – Zróżnicowanie Przestrzenne," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 2(167).
    2. Guo, Min & Yang, Naiding & Wang, Jingbei & Zhang, Yanlu & Wang, Yan, 2021. "How do structural holes promote network expansion?," Technological Forecasting and Social Change, Elsevier, vol. 173(C).

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