A Hungarian and Ukrainian Competitors’ Network: A Spatial Network Analysis Perspective

György Jóna

doi:10.3390/urbansci2040099

Abstract

In this paper, the spatial dimensions of a transboundary, coopetitive (coopetition: cooperation of rivals) network, established by restaurant owners, are scrutinized empirically by applying advanced toolkits of spatial network analysis (SpNA). The paper emphasizes that the coopetitive network has geographical extensions, and on the other hand, interactions between vertices generate network space. The new type of economic network could thus be analyzed by SpNA to understand the spatial characteristics of a rivals’ network at transboundary level. The paper may be referred to as cutting-edge research, because on one hand, it dissects a new type of economic network (coopetitive networks) and on the other hand, a new method is utilized (SpNA) to study the geographical parameters of inter-firm relationships. This approach emerges as a novel method. As a result, the paper provides significant, fruitful and new findings in both network science and urban economics as well. By employing metrics of SpNA, the main spatial traits of the coopetitive network can be mapped, such as the circumference, spatial structure, diameter, spatial density, spatial small world phenomenon, and global connectivity of the network. The results show that the coopetitive network possesses hub-and spoke spatial framework, in which the hub is localized far from the cluster of players. Moreover, the coopetitive interaction does not require face-to-face nexus, because the focal firm communicates with them via IT devices. The coopetitive activities contribute significantly to the urban economic growth. The main agent (the hub) ought to be supported by the regional development policy at the local and inter-urban geographical scale as well.

Highlights

The network agents, that are local microenterprises or/and SMEs, cooperate with each other only in two business segments. They purchase different products together, the wholesalers provide discount to them; savings are realized by every coopeting enterprise because they purchase in a bulk
The coopetitive savings, which stem from two coopetitive activities, are invested in creating new jobs and/or increasing level of income
The coopetitive network contributes to the local economic development and growth significantly

Summary

Introduction

A new form of business network is emerging that is regarded as coopetition [9,10]. The notion of coopetition (mixture of cooperation and competition) was coined to the terminology system of economics by Bradenburger and Nalebuff (1996) [11] more than two decades ago. Coopetition refers to a dynamic interplay in which rivals cooperate and compete with each other simultaneously in business segments, in order to reach higher profit rates [9,12,13,14,15]. The coopetition, as a new inter-firm relationship, is defined as a network; more precisely, it appears as a rivals’ network

Methods

Results

Conclusion