The Value of Spatial Proximity in Relationship Portfolio: A Case of Strategic Alignment

Globalization and information and communication technologies have deeply modified the value of geographic proximity. These phenomena enable new relationships with international actors that can be very distant, thus reducing the importance of geographic proximity. However, contrary to general impression, some authors argued that distance still matters, and that the role of space should be analysed more deeply. So, in a competitive scenario where spatial proximity is less and less valuable to the inter- organization relationships, it is important to identify those situations where it maintains its value. The aim of this paper is to present the case of a mid-firm that has modified its relationship portfolio to align its global supply chain to a new business strategy. More precisely, at the same time of a growing internationalization, the enterprise has increased the geographic proximity with a group of local suppliers and it has found new technological solutions to interact with other distant actors of its global supply chain. The result of this process is a new supply chain where global suppliers coexist with local suppliers, and where the use of information and communication technologies have interestingly modified the current value of geographic proximity.