Efectividad

Different approaches to regional development are seen such as conventional top down and bottom up approaches, sectoral approach, integrated approach, human rights based approach, infrastructure-led regional development approach, and organisational strategic approaches such as resource based approach, knowledge based approach and place based approach. In the conventional top down approach, the focus remains to the competitive advantages of a region and the re-locational attraction of other industries to the region for providing opportunities to the local residents (Adams & Buultjens 2010). The emphasis is given to market driven business ethos, development approval processes, urban business district development, tax incentives and relocation subsidies. The main challenges of the top down approach include relating economic development with social issues of the region, reliance on market demands

and relocation of other industries outside the region (Adams & Buultjens 2010).

The bottom up approach may suffer from the lack of decision making and planning efficiency and the lack of sufficient existing resources and equity to mobilize into functional context (Ascani, Crescenzi & Iammarino 2012). It may also fail to consider the broader economic context for the region (Eversole 2003). A mixture of both top down and bottom up approaches should be considered for a sustainable regional development (Eversole 2003).

The sectoral approach connects economic and social aspects and emphasises on industrialisation where agriculture is assumed to make its vital contribution (Kuhnen 2013). The sectoral approach is suitable in an environment where governance and institutional arrangements are weak (Foster 2000). But, the important bottleneck of the sectoral approach is that the only use of sectoral approach cannot overcome the existing deficiencies in the system which eventually in the long run increase the gap in living standards between the peoples in urban and rural areas (Kuhnen 2013). In addition to this disconnect, the lack of sufficient integration among different sectoral interventions may result inconsistent outcomes (European Union 2010). The integrated approach is then advocated to address the non-integrated sectoral approach where place based policy, multi-level governance and partnerships are crucial elements (European Union 2010; OECD 2013).

A human rights based approach to regional development is also in practice (ACFID 2010; Frech 2005). The objective of development activities in human rights based approach is to uphold the human rights codified in the international human rights legal framework (ACFID 2010). For example, project activities related to gender equity, empowerment of the poor, equity and freedom from discrimination and torture, fair trial,

health, education and housing contribute to regional development. Moreover, an infrastructure-led regional development approach (Gajewski, Bathiche & Wilczewski 2007) is recommended in literature. From policymakers’ perspectives, the infrastructure-led regional development approach promotes distribution of infrastructure projects’ net benefits between stakeholders groups (Gajewski, Bathiche & Wilczewski 2007). The major flaw of these two approaches in that they are not adequately focused on regional attributes and programs.

From organisational standpoint, a strategic perspective to regional development approach is important for effective involvement in regional development. Three approaches have been observed from strategic perspective such as resource based approach, knowledge based approach and place based approach. These three approaches have been discussed below in brief and have been evaluated in relation to port strategy in consistent to the research topic:

2.5.1 Resource based approach

A resource based approach to regional development emphasis on the effective and efficient application of advantageous resources to achieve regional competitive advantages (OECD 2011b). The resources should also be simultaneously valuable, rare, non-substitutable, and inimitable (Barney 1991). For example, a port infrastructure needs to drive its strategy for effective utilisation of its resources in order to achieve a competitive advantage.

The valuable resources of an organisation include its assets, competency, processes, skill base and knowledge (Kostopoulos 2002). The ability to integrate, generate and reconfigure internal and external resources, that is, the dynamic capability in a changing circumstance is important (Haezendonck 2001). These resources are strengthened when they produce a competitive advantage (Wheelen & Hunger 2002) not

duplicable in nature and not being implemented currently by competitors (Barney 1991).

2.5.2 Knowledge based approach

A knowledge based approach is regarded as an extension of the resource based approach (Hoskisson et al. 1999). Resources are same as resource based approach with special emphasis on knowledge as the dynamic element rather a generic resource (Halkier et al. 2010). In this approach, knowledge, innovation and consensus spaces (institution spheres agreeing for collaboration) provide impetus to integrate endogenous and exogenous strategies (Etzkowitz & Ranga 2010). A knowledge based approach places learning by community as the foundation of the strategy and supports innovation because of its systematic nature (Llerena & Matt 2005). Interactive learning space is critical in the knowledge based approach where face-to-face interaction is possible for spreading tacit knowledge (that is, non-codified knowledge). The sustainable competitive advantage is achieved through knowledge creation, continuous improvement and organisational learning (Salmi et al. 2001).

2.5.3 Place based approach

In place based approach, regional resources, opportunities, linkages, human capital and capacities (endogenous potential) are recognised as central (Cantin 2010; Tomaney 2010). Integration of goods and services, aggregation of local preferences, community participation, and the establishment of links with other places are the fundamental elements of a place based strategy (Tomaney 2010). The focus in place based approach also remains on the community’s triple bottom line of social, economic and environmental returns on investment (Rangwala 2010). In this approach, the sustainable competitive advantage depends on distinctive, localised capabilities and is achieved by promoting knowledge sharing, innovation, collaboration, entrepreneurship, and regional preference (Bellefontaine

2011; Tomaney 2010). The driving factors for a place-based approach are collaboration; regional opportunity, talent, resources and constraints; jurisdictions and dimensions of sustainability; an adaptive learning process and knowledge sharing (Bellefontaine 2011; Cantin 2010; Raagmaa 2002). Strong and adaptable local institutes and interactive learning spaces, involvement of diverse range of stakeholders for identification, decision-making and configuration of regional resources are critical for place based approach (Bellefontaine 2011; Tomaney 2010).

In sum, the approaches to regional development are interrelated to each other. In order to contribute effectively in regional development, an infrastructure service providing organisation like port needs to assess the suitability of the approaches depending on the capability of the organisation, its internal and external environment, and potential and demand of the region. The ultimate objective of an organisation in adopting a strategic approach to contribute effectively in regional development should be facilitating in unlocking the potential of the region and capitalising on it.