Regions as Networks: Towards a Conceptual Framework of Territorial Dynamics

Regions interact with multiple actors and industrial companies are one of the most important players in this interaction. By their strategic actions and relationships, companies are simultaneously present in different regions and influence a territory’s dynamics and structure. Moreover, territorial characteristics are also a condition that can shape a company’s action. This reciprocal influence is recognized by an emerging theoretical background of relational geography. Within the industrial network approach interest in this phenomenon is also increasing. However, the interactions between companies and regions have not been sufficiently explained. Thus, the main objective of this working paper is to produce new knowledge about the dynamics and interactions between regions and industrial networks. More precisely, the authors want to explain how companies’ strategic action is reflected in territorial dynamics and structure and how such factors affect the companies’ strategic action. Based on extensive research of the interactive relations between companies and regions, a model aimed at providing a better understanding of this mutual influence was developed.