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European cooperation, an alternative to the PYMES (small and medium companies) for its advantages in relation to the achievement of scale economies

Companies´ cooperation solution can provide an especially effective alternative, since it offers similar advantages, like the achievement of scaleeconomies and resources access, without sacrificing the necessary freedom that the competitive environment requires, at the time as it avoids risk concentration. It all is contained in the book “The internationalization of the European PYME: genesis and evolution of policies to support business cooperation in the network of the European Union” published by the teacher of the Department of Business Management of the University of Granada, Enrique Rubio López

As it establishes stable links among organizations, –according to the author of the volume published by the University of Granada– which keep their respective identities separated, cooperation introduces a new vision of the intermanagerial relations that allows to perceive dealers, clients and rivals not only as threatening forces, but also as potential allies that can contribute complementary resources and y abilities, valuable to improve the competitiveness of an organization.

According to Enrique Rubio, “the growing international dimension of economic activities has been inseparable from capitalist development from its origins. In this sense, we can not understand economic internationalization as a characteristic exclusively attributable to present day, in contrast to previous periods. However, it is easy to agree on that when from different contexts we talk nowadays about economic internationalization, its characteristic features present important distinguishing shades with regard to the internationalization process in the past. Referring to a new reality, which has began to take shape in the last two or three decades, transforming the economic context and generating completely new opportunities and challenges for business management”.

Removing the barriers
According to teacher Enrique Rubio, “trade barrier removal among countries, the growing levelling down of demand at an international level, the revolution experienced in merchandise and person transport system, technological change speeding-up and its fast spreading, among other significant factors, integrate into a general trend leading to a progressive market globalization”.

Companies´ adaptation response comes, always according to the author of the volume published by the University of Granada, to a great extent, from the use of external growing processes based on the maxim of not working alone. That is why there is a proliferation of mergers, takeovers and alliances among companies flooding the media every day.

According to Enrique Rubio, “cooperation advantages are even more valuable in the international context. Thus, the use of joint contractual formulas for the access to new markets, the combined carrying out of investments in new productive installations, the creation of business networks or simply the absorption of the information of the local partner, facilitates a faster and less risky penetration. Transcending the dichotomy between pure export and the establishment of subsidiary firms. As a consequence, cooperation turns out to be an especially appropriate option to manage international strategy, as it opens a wide range of possibilities that allow to combine different levels of risk”.


Referencia: Professor Enrique A. Rubio López.
Department of Business Management. University of Granada.
Phone number: 958 243705.
E-mail: erubio@ugr.es