Developing relationships within the framework of local economic development in Spain

Abstract

This study is aimed at analysing the relationships between local development agencies and various actors from within their environments. The authors explore the applicability of a relationship marketing approach to local development and propose the influence of economic development objectives on the relational orientation of partnerships, as well as the correspondence between the relational orientation, the results obtained and the expectations of continuity. The empirical study focuses on particular cases of Spanish development agencies operating at local and regional level. A structural equations analysis in a sample of 174 relationships of 18 local development agencies evidences that while the relational orientation of internal relationships and lateral relationships with other development agents is hardly influenced by the objectives of economic development, the closeness of vertical relationships (residents, firms, tourists and local entrepreneurs) depends to a large extent on these objectives. Moreover, it has been confirmed the that effect of relational orientation on competitiveness, on efficient management, and on satisfaction, whereas the creation of infrastructures seems not to be a direct result. The authors conclude that managing relationships with suppliers and target groups as alliances, working together, sharing information, resolving conflicts satisfactorily, and sharing common values, will guarantee performance and resources management efficiency, and will ensure the continuity of fruitful relationships.