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MANAGEMENT AND ENTREPRENEURSHIP: TRENDS OF DEVELOPMENT
ISSUE 2 (28), 2024
100
ENTREPRENEURSHIP, TRADE AND EXCHANGE ACTIVITIES
RECEIVED:
17 April 2024
ACCEPTED:
17 May 2024
RELEASED:
20 June 2024
UDC 332.12:005.52]:330.41(65)
DOI 10.26661/2522-1566/2024-2/28-08
TERRITORIAL INTELLIGENCE IN ALGERIA, BETWEEN NETWORK STRUCTURING
AND SUSTAINABLE DEVELOPMENT
*Corresponding author email: ferdjyounes@gmail.com
Abstract. Territorial intelligence in Algeria represents a captivating and crucial field of study,
situated at the intersection of network structuring and sustainable development. In a context where
territories play a vital role in achieving national objectives, territorial intelligence emerges as a
strategic component. This study explores the complex dynamics related to the network structuring
of territorial actors and its impact on sustainable development. Algeria, with its geographical,
social, and economic diversity, provides a fertile ground to understand how territorial intelligence
can catalyze cooperation among different actors and promote sustainable initiatives. This
exploration will seek to shed light on the challenges and opportunities presented by territorial
intelligence in the specific context of Algeria, emphasizing its potential role as a lever for
harmonious and sustainable development. This work pursues two fundamental objectives. Firstly, it
aims to clarify the concept of territorial intelligence by highlighting its collective, transformative,
and interactionist dimensions. We have endeavored to demonstrate the existence of
interdependencies and reciprocal links between the network structuring of actors and the local
industrial dynamics. Secondly, we delve into the question of sustainable development in territories
in Algeria, particularly in the province of Blida, known for its specific entrepreneurial dynamics.
Our exploratory study is based on a quantitative statistical survey through a questionnaire,
conducted with a sample of 110 companies located in various industrial and business zones in the
province of Blida. The main results of this research highlight that the geographical concentration of
companies provides an opportunity to strengthen competitive interactions and foster the emergence
of ecosystems conducive to exchange, knowledge transfer, innovation, and the creation of added
value at the local level. We observe that the deployment of territorial intelligence and network
structuring processes requires a specific industrial organization, including the establishment of open
and collaborative networks or clusters of companies.
Keywords: territory, territorial intelligence, sustainable development, network.
JEL Classification: D21, L10, O31, R11.
Younes Ferdj*
Doctor of Economics and Applied Statistics
Senior Researcher, Centre for Research in Applied
Economics for Development (CREAD),
Researcher, Laboratory LAMOPS, (ENSSEA),
Algeria
ORCID 0009-0002-1997-2101
Abdelkader Djeflat
Professor of Economics, Maghtech-DIM,
Clersé Lab, CNRS UMR 8019. Associate
Researcher CREAD,
Algeria
ORCID 0000-0002-6643-0156
Ferdj, Y. & Djeflat, A. (2024). Territorial intelligence in Algeria, between network structuring and sustainable
development. Management and Entrepreneurship: Trends of Development, 2(28), 100-115.
https://doi.org/10.26661/2522-1566/2024-2/28-08
101
INTRODUCTION
In a global economic context marked by increased competition, making a territory attractive
has become a major concern for states. The objective is to create conditions to promote competitive
and innovative activities and to foster synergies among skills through the combination of small and
medium-sized enterprises (SMEs), administrative and financial institutions, in addition to research
and training centers (Girardot and al, 2007). Consequently, the territory has become an essential
component in the competitiveness strategy of nations and a resource pool to be mobilized through
interaction between various private and public actors (Ferdj & Djeflat, 2024). Thus, the
development of tools relies on emerging Information and Communication Technologies (ICT). to
store, process, and disseminate information carrying the knowledge of a territory (Girardot and al,
2007). Economic intelligence addresses this challenge by engaging in the collection, analysis, and
transformation of information into knowledge that will be disseminated to the right stakeholders
(Baulant, 2018). At the local level, the application of economic intelligence leads us to the concept
of territorial intelligence, explained notably by the renewed interest in the territory, which is now at
the heart of firms localization strategies, and by decentralization laws that grant it new attention
(Lahrach and al, 2020). This practice has the merit of increasing the competitiveness of each actor
and promoting the attractiveness of the territory through the creation of public-private partnerships
(Venturini, 2006) while facilitating the dissemination of information useful for decision-making,
and the transfer of knowledge and skills (Lahrach and al., 2020). Territorial intelligence "arises
from the conjunction of major and interdependent changes in economies and societies" (Blancherie,
2002). Territorial intelligence is particularly useful for helping territorial actors plan, define,
animate, and evaluate policies and actions for sustainable territorial development (Dumas, 2004).
However, the challenges of integrating into a territorially oriented economic intelligence dynamic
are real, especially for territories with limited resources (both state and private), as emphasized in
the literature (Bertacchini, 2004). Consequently, more and more territories are pooling their
energies to share their skills, know-how, and resources to integrate into this new dynamic.
In the context of our country, faced with new challenges of territorial competitiveness,
Algeria has engaged in the implementation of sectoral policies, particularly industrial policies
aimed at creating and supporting competitiveness clusters. (It is through the National Territorial
Planning Scheme (SNAT, 2008, 2010) that the State defines its major territorial project aimed at
restoring the strength and attractiveness of the territory in all its components), with the goal of
creating an ecosystem conducive to exchange, knowledge transfer, innovation, and value-added
production at both local and national levels (Ferdj, 2024). Given the sustainable development of
territories characterized by the convergence of economic, social, cultural, and environmental
objectives, our objective in this work is to present territorial intelligence as an alternative to
sustainable territorial development modes based on economic profitability and local network
structuring dynamics within the competitiveness cluster of the Blida region (northern Algeria). In
this context, our article will focus on the following questions: To what extent does territorial
intelligence ensure the attractiveness of the territory in Algeria? What are the prospects for
promoting sustainable development through territorial intelligence? What can local/sustainable
development contribute to this dynamic?
The answer to these questions requires understanding the effect of territorial intelligence on
the attractiveness of territories, through the phenomenon of network structuring (cluster) of local
businesses and actors (Ferdj & Djeflat, 2024) from a sustainable development perspective in this
territory. This work is based on the results of an exploratory research conducted through a field
survey among a sample of 110 companies located in the agri-food cluster of the Blida province
(Ferdj, 2020). It allowed us to specify territorial intelligence between network structuring and local
industrial dynamics. To do this, a first section will shed light on a literature review surrounding
territorial logic and territorial intelligence with their different dimensions. The second section will
focus on presenting the context of the emergence of territorial intelligence and addressing its
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relationship with the attractiveness of the territory and sustainable development. The final section
will present and discuss the results of our field survey research on the phenomenon of territorial
intelligence and its integration into the agri-food cluster of the Blida province and its impact on
local and sustainable development.
LITERATURE REVIEW
Territorial intelligence is a reasoned approach to the understanding and governance of
territories (Dumas, Gardère & Bertacchini, 2007). It emerged in the late 1980s following the "thirty
glorious years." Pierre Maurel, 2012, considers territorial intelligence to be examined as a collective
process, necessary for the progressive emergence of a territory, which must have the capacity for
self-analysis, monitoring, and the development of shared awareness and a distinct identity. Actors
within the same territory must be interconnected on a daily basis due to their spatial proximity,
contributing to the strengthening of shared territoriality (Maurel, 2012). On their part, Comin and al.
(2010) note that the territory is defined as an "actor" benefiting from proximity and agglomeration
effects to reduce uncertainty through governance involving stakeholders from various socio-
economic backgrounds. Meanwhile, according to Bertacchini (2004), territories result from specific
forms of social interrelations emanating from individuals, companies, and organizations capable, at
the local level, of developing dynamics that offer better control over their immediate future. For
Turnes (2011), the territory "proves to be much more than a mere physical base since it represents a
framework of relationships with historical origins consisting of links that go beyond factors related
to natural resources, transportation, and communication costs."
Territorial intelligence is a means for researchers, actors, and the territorial community to
acquire a better understanding of the territory, as well as to better manage its development.
However, territorial intelligence goes further: in addition to mentioning the territory, it involves
spatial analysis methods and geographic information systems. They then approach economic
intelligence. Thus, Pelissier and Pybourdin (2009) express a vision of territorial intelligence very
close to economic intelligence by distinguishing three aspects: 1) territorial economic intelligence is
the creation of products and the provision of services for economic innovation actors; 2) strategic
territorial intelligence is the creation of permanent infrastructures for territorial monitoring; 3)
territorial community management is the creation of a resource center that encourages the
development of various digital territories. Marie-Michèle Venturini (2006) argue that the process of
territorial intelligence is "the relevant pragmatic approach for networking actors, especially in
sharing territorial information." The various experiences gathered arouse interest and participation
from all stakeholders; it seems that the analysis of territorial intelligence objectives must be carried
out with elected officials, territorial leaders (administrations and delegated management
companies), and representatives of civil society (Venturini, 2006). The dimensions of territorial
intelligence:
Collective dimension: Territorial intelligence is a collective process and should not be
reserved for a limited number of actors. A very broad involvement of diverse actors is essential to
the territorial intelligence project. Therefore, a mechanism ensuring its implementation must be
considered from a global perspective, taking into account all actors within the territory. It should be
based on a cooperative information system to disseminate quality information (Harbulot &
Baumard, 1997). Yann Bertacchini (2004) refers to the concept of territorial intelligence in relation
to collective intelligence defined by Pierre Lévy (1998) as "an intelligence distributed everywhere,
constantly valued, coordinated in real-time, resulting in an effective mobilization of individual
skills, and based on the principle that everyone knows something, possesses skills, and expertise."
The concept of territorial intelligence refers to a set of multidisciplinary knowledge that, on the one
hand, contributes to understanding the structures and dynamics of territories, and on the other hand,
aims to be a tool in the service of actors in sustainable territorial development.
Ferdj, Y. & Djeflat, A. (2024). Territorial intelligence in Algeria, between network structuring and sustainable
development. Management and Entrepreneurship: Trends of Development, 2(28), 100-115.
https://doi.org/10.26661/2522-1566/2024-2/28-08
103
The transformative dimension: Establishing a territorial intelligence process cannot be done
without constructing or implementing a framework that considers transformations. The relationship
between the actors of a territory is a determining factor in the success of a territorial intelligence
framework. Its role is to ensure an interface function and to transform into a territorial intelligence
system capable of carrying out informational and communicational activities that serve common
interests.
The interactionist dimension: Access to information "represents a crucial issue for individuals
and communities as it influences citizen behavior and the socio-economic activities of collectivities.
It is a factor of empowerment for individuals and a factor of sustainable development for societies"
(Touati, 2008). Despite this global context, mobilizing data and information held by the local
territorial community remains a delicate operation in an ongoing process of observation (Amraoui
& Aziz, 2023).
The valorization dimension: The primary objective of territorial intelligence is to enhance the
value of territories and their dynamism by ensuring a new connection of living spaces (Bertacchini,
2004). It is also a place to develop intellectual and cooperative capacities to create and innovate in
all fields. Territorial valorization and the capacity of local actors to build a common vision of their
future are collective approaches that should be part of a comprehensive citizen approach. However,
professional observers believe that current territorial approaches are static and limited, as they are
based on the territorial delineation of their competences. Territorial intelligence is therefore a new
concept that takes into account the dynamism and evolution of the territory. It also calls for
collective intelligence based on information processing and communication technologies (Miedes,
2009). Table 1
Territorial intelligence and its configurations
Target actors
Means/tools/approach
Territorial intelligence as
economic intelligence driven
at the territorial level
primarily companies
tools of economic
intelligence, monitoring, and
information systems
Territorial intelligence as
used by a territory for its
own needs
a community or a group of
communities
techniques used to improve
territorial governance
Territorial intelligence as a
combined application at the
territorial level of economic
intelligence actions
business clusters, local
productive systems
combination of monitoring,
informational, knowledge
management, and/or
prospective tools
Territorial intelligence for
the "intelligent management
of a territory" in its
development
experts in geographic
resource management
territory management tools,
digitization (ICT)
Territorial intelligence as a
set of knowledge and skills
constituting a territory
associations, NGOs, and
actors of civil society
tools for collective
appropriation of knowledge
Source: Compilation by the authors.
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As indicated in the table, territorial intelligence takes on several configurations at the level of
a territory:
1. It can be perceived as economic intelligence driven by territorial authorities for the needs
of businesses. It involves raising awareness among businesses about the methods and tools of
economic intelligence and providing them with all the means to implement an EI approach within
their organization.
2. It can be perceived as a governance instrument by a territory or a community (or a group of
communities) for its own territorial governance needs. Several techniques used in economic
intelligence for businesses (strategy, monitoring, influence) and new forms of management are
utilized.
3. It can be used towards business groupings through a combined application at the territory
level of economic intelligence actions (monitoring, information protection, influence and lobbying,
networking), knowledge management (capitalization, mapping, sharing and creation of knowledge),
or others such as foresight, innovation, or marketing. This combination is proposed by business
groupings (clusters, local public companies, competitiveness clusters) to enable businesses in this
territory to be more competitive.
4. Territorial intelligence can be a strategic vision of its development in relation to its
economic, social, geographical context, its resources, and its spatial organization aiming for
sustainable development. This work mobilizes experts and consultants, researchers in various
disciplines (economists, geographers, urban planners).
5. Territorial intelligence is understood as an approach, methods, and tools specific to the
business world, which would be "adapted" to the economic development needs of a territory. It
would be more precise to speak of "territorial economic intelligence"; on the other hand, it is a set
of knowledge and skills constituting a territory, the very notion of collective intelligence, which
would shape the future of the territory according to the more classical approach of local
development by bringing it a culture of monitoring and strategy that has often been lacking.
Sustainable development relies on the appropriate exploitation of the resources offered by a
territory to continually improve the living standards of its inhabitants. Consequently, a sustainable
development dynamic of any territory is closely dependent on the innovative and rational use of
available resources. Sustainable development has its roots in the 1970s with the realization of the
limitations of a growth model depleting natural resources and relegating much of humanity to
poverty. Established by the Rio Earth Summit in 1992, sustainable development is now
incorporated into national and international policy directions. However, it is at the territorial level
that a renewal of action has been emerging in recent years, concretely integrating sustainable
development into social and economic realities.
Territorial dynamics are being organized. Since Rio, more than 2000 local authorities have
committed to a Local Agenda 21. The Law on Orientation for Planning and Sustainable
Development of Territories explicitly refers to the local Agenda 21 process as a tool for
implementing sustainable development. The Local Agenda 21 is a program of actions that defines
the objectives and means of implementing sustainable development in the territory. It is developed
by aligning the goals of the community and in consultation with all its socio-economic actors. The
central issue of local sustainable development arises in terms of resolving conflicts between the
interests of the business and the interests of the local society. The concept of sustainable
development emerges as a harbinger of a new order, in which economic growth must satisfy the
needs of the present generation without compromising the ability of future generations to satisfy
their own (Brundtland, 1987). The territory is the space par excellence of relation, the level where
complexity, meaning the system of relations, is most concretely apprehended (Calame, 2015).
Indeed, it is the space of daily experience and innovations. The practices implemented, notably in
Ferdj, Y. & Djeflat, A. (2024). Territorial intelligence in Algeria, between network structuring and sustainable
development. Management and Entrepreneurship: Trends of Development, 2(28), 100-115.
https://doi.org/10.26661/2522-1566/2024-2/28-08
105
local Agenda 21 initiatives at all levels of territories, translate into exemplary achievements in terms
of urban policies or sustainable local development.
Since its adoption by the international community in September 2015, Algeria has embraced
the 2030 Agenda and sought to provide strong national responses commensurate with the
challenges it entails. At the institutional level, an Interministerial Coordination Committee under the
auspices of the Ministry of Foreign Affairs was established in 2016, tasked with monitoring and
evaluating the implementation of the SDGs in Algeria. This committee brings together various
ministries, institutions, and national organizations. The appropriation of the SDGs involves their
integration into public policies. In Algeria, the incorporation of the SDGs was done within the
Government Development Plan 2017 and reiterated in various government action plans. A National
Strategy for Environment and Sustainable Development (SNEDD 2019-2035) has been established.
The SNEDD, which covers virtually all areas, is structured into seven strategic axes, 19 objectives,
and 34 priority actions. Overall, the seven axes focus on improving health and quality of life,
preserving natural and cultural capital, developing a green and circular economy, increasing
resilience to desertification, enhancing resilience to climate change, ensuring food security, and
environmental governance. While at the macro-policy level progress seems to be made, it is at the
level of businesses and territories that effective adoption and implementation remain most
problematic.
METHODOLOGY
We attempted, through a statistical survey using a questionnaire, to specify the process of
territorial intelligence between network structuring and local and sustainable development, as well
as between territorial understanding and stakeholder participation, among a sample of 110 small and
medium-sized enterprises (SMEs) located in various industrial zones and activity zones within the
agri-food cluster of the Blida province (Ferdj & Djeflat, 2024). Through this research, our
questionnaire was aimed at companies operating in the agri-food sector, in order to assess their
perception of their interactions with their territories. The questionnaire consisted of six sections.
These questions were mostly posed in Likert-type attitudinal form with a seven-point scale (from 1
= "strongly disagree" to 7 = "strongly agree"). Other questions were closed-ended and some were
ranking questions (Ferdj, 2021). For the chosen sampling method, we opted for the empirical
method of "quota sampling." This method does not contain any random elements, and therefore its
reliability cannot be mathematically calculated as probability calculations cannot be used (Ardilly,
2004). Quota sampling is the most commonly used method by polling institutes. It is a sampling
method that ensures the representativeness of a sample by assigning it a structure similar to that of
the target population (Ferdj & Hamadi, 2024). Descriptive data analysis and exploratory analysis
were conducted using SPSS 24 software. Descriptive analysis involves describing the data collected
from our empirical survey by performing cross-tabulations between the main variables (flat sorting
and cross-tabulation). The results are presented in terms of frequency and percentage.
The Blida Province, covering an area of 1482.8 square kilometers, is located in the northern
part of the country in the central Tell geographical zone. It is bordered to the north by the provinces
of Tipaza and Algiers, to the west by the Ain Defla Province, to the south by the Medea Province,
and to the east by the provinces of Boumerdes and Bouira.
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Figure 1. Administrative map of Blida Province
Source : http://www.dsp-blida.dz/index.php/wilaya
The capital of the province is located 50 km west of the capital, Algiers. Blida Province has a
useful agricultural area of 66,280 hectares, which includes vast fertile plains of the Mitidja,
accounting for 44.28% of the total land area. Blida is the 8th industrial metropolis in Algeria. It
comprises 25 municipalities distributed across 10 districts. There are 20,036 SMEs employing over
60,969 people. The industrial fabric of the province consists of 5,145 production units employing
more than 42,893 workers, with nearly 40,810 working in the private sector as of 2019 (Ferdj,
2020). The location of Blida Province in the fertile plain of Mitidja is the reason behind its
agricultural vocation and, consequently, its development in the agri-food sector. The agri-food
sector represents 15% of the local industry (approximately 763 units) and employs 11,027 workers,
accounting for 27% of industrial employment (Ferdj, 2022). The road network in Blida Province
undergoes annual development and modernization operations, in addition to infrastructure works
carried out as part of planned programs, aimed at making traffic smoother. The network of national
roads, paved to 93.6%, covers 19.85% of the total network of the province. As for the provincial
road network, which is entirely paved, it covers approximately 22.32% of the total network. Finally,
the networks of communal and rural roads, of which only 62.2% are paved, represent 52.55% of the
total network of the province.
Investment is considered a priority by the public authorities to address various challenges,
both social and economic. In this context, Blida Province has been at the forefront of investment in
all sectors. However, in recent years, there has been a standstill due to a lack of industrial land,
despite a very high demand from project developers wishing to establish themselves in the
province. According to Table 2, in 2019, no less than 1603 investment projects were registered at
the National Agency for Investment Development (ANDI), since its creation in 2003. This
corresponds to a total investment amount of 347,900 million dinars resulting in the creation of
43,546 jobs.
Ferdj, Y. & Djeflat, A. (2024). Territorial intelligence in Algeria, between network structuring and sustainable
development. Management and Entrepreneurship: Trends of Development, 2(28), 100-115.
https://doi.org/10.26661/2522-1566/2024-2/28-08
107
Table 2
Distribution of investment projects declared by sector of activity in the Blida province (2003-
2019)
Sector of
activity
Number
of
projects
(%)
Amount in
millions of
DA
(%)
Number
of jobs
(%)
Agriculture
18
1.12%
3,284
0.94%
414
0.95%
Construction
197
12.29%
37,013
10.64%
7,379
16.95%
Industry
587
36.62%
263,029
75.60%
26,688
61.29%
Health
35
2.18%
2,685
0.77%
491
1.13%
Transport
642
40.05%
22358
6.43%
5108
11.73%
Tourism
13
0.81%
6531
1.88%
595
1.37%
Services
111
6.92%
13000
3.74%
2871
6.59%
TOTAL
1603
100%
347900
100.00%
43546
100%
Source: Compilation by the authors, (ANDI, 2019).
PRESENTATION OF RESULTS
The origin of business creation :
According to Table (3) below, we find that business creation is the most common formula in
our sample, with 84.5% of businesses being created, compared to only 5.5% relocating and 9.1%
restructuring, and only 1% restructuring. These results explain that the province under study attracts
more local creators and project developers than creators from other regions of the country.
Therefore, the attractiveness of the territory is limited to local actors. Table 3
The origin of the business creation
Frequencies
Percentage
(%)
Creation
93
84,5%
Relocation
6
5,5%
Rehabilitation
10
9,1%
Restructuring
1
0,9%
Total
110
100%
Source: Conducted by us, based on the field survey
The results obtained show that the Blida region is highly favorable for business creation, it
attracts project developers very effectively. The high number of businesses established in the Blida
province proves that this territory remains attractive and offers certain competitive advantages from
the start of operations.
Territorial Anchoring of Businesses:
Being native to the region, comprehensive knowledge of the environment and its
surroundings is therefore an asset for business leaders, in order to contribute to the process of
territorial intelligence. The knowledge of the microenvironment by the native actors of this region
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not only allows them to easily access land plots but also to build cross-cutting relationships with
various stakeholders (Djeflat and al, 2017). Table 4
The origin of the entrepreneurs
Are you from the region (Blida
province) ?
Frequencies
Percentage
(%)
Yes
88
80,0
No
22
20,0
Total
110
100,0
Source: Conducted by us, based on the field survey
According to the Table (4), surveyed companies appear to have a strong territorial anchoring
due to their origin compared to business leaders. It is noticeable that 80% of the companies were
created by natives of the region, while only 20% came from elsewhere. The regional context plays a
significant role in the decision to establish themselves in the territory of the Blida province (Ferdj,
2020).
Local dynamics and sustainable development, basic infrastructure and
transportation :
The road and transportation infrastructures: the surveyed companies express high satisfaction
with highways (87.3%) as well as local roads (72.7%), but are dissatisfied with other means of
transportation, notably air and maritime transport. This results in an overall dissatisfaction rate of
50.5% and 49.1%, compared to only 14% for air transport and 25.5% satisfaction for ports and dry
ports (Figure. 2).
Figure 2. Access to the road infrastructure of the Blida province
Source : Conducted by us, based on the field survey.
The dimensions of territorial intelligence, collective and transformative:
Territorial intelligence is a collective process and should not be reserved for a limited number
of actors. A broad involvement of diverse actors is essential for the territorial intelligence project.
The relationship between the actors of a territory is a determining factor in the success of a
territorial intelligence mechanism. Its role is to ensure an interface function and to transform into a
territorial intelligence system capable of carrying out informational and communicational activities
that serve common interests. Geographical proximity is essentially based on proximity in physical
space. It can serve as a facilitator for coordination among businesses operating in the same territory
and can simplify the transfer of cooperative relationships (Ferdj, 2024). According to the table (5),
it is noticeable that the majority of surveyed companies having a coordination relationship with
other companies operate in the same territory of the Blida province, accounting for 68.2%. This can
Ferdj, Y. & Djeflat, A. (2024). Territorial intelligence in Algeria, between network structuring and sustainable
development. Management and Entrepreneurship: Trends of Development, 2(28), 100-115.
https://doi.org/10.26661/2522-1566/2024-2/28-08
109
be explained by the importance of geographical proximity considered by these companies in order
to reduce distance and transportation costs (Ferdj & Djeflat, 2024). Table 5
Coordination relationship between companies in the same territory (Blida)
Do you have
relationships with
other companies in the
same region?
Frequencies
Percentage (%)
Yes
75
68,2%
No
35
31,8%
Total
110
100%
Source: Conducted by us, based on the field survey
The interactionist dimension of territorial intelligence :
The results from Table (6) indicate that the majority of surveyed companies leverage local
expertise, with employees residing in the same region as the company's location. Specifically, out of
110 surveyed companies, 51 have between 80% and 100% of employees residing in the same
province. Additionally, 49 of these companies have between 40% and 80% of employees residing in
the Blida region. Concerning employees residing in other provinces, approximately forty companies
show a percentage between 20% and 40%. Finally, the percentage of foreign employees is very low,
ranging between 0% and 20%. These findings suggest that local businesses justify their
establishment based on economic motivations, as they aim to contribute to the economic
development of their regions, highlighting the role of geographical proximity in territorial
development. Conversely, companies not relying on activities based on local expertise exhibit a
similar proportion, possibly explained by the lack of local skills and the requirement for qualified
labor. In this context, we assessed the significance of geographical proximity in business operations
and analyzed the interest shown by companies in utilizing local expertise. Table 6
Share of employees residing in surveyed companies
The share (%)
Residents in the
province of Blida
Residents in the rest of the
provinces of Algeria
[0-20[
7
35
[20-40[
3
41
[40-60[
30
12
[60-80[
19
21
[80-100]
51
1
Total
110
110
Source: Conducted by us, based on the field survey
Factors influencing the process of territorial intelligence within the
framework of local network structuring :
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Table 7
The characteristics of the company and its degree of network integration
Weakly
integrated
Strongly
integrated
Test Statistic
Age of the company
21-30 years
11-20 years
3,056**
Number of employees
Between 10 and
49
Between 50 and
250
6,56**
% of companies with
cooperation relationships with
other companies
55
45
1,05
% of companies with R&D
collaborations with educational
institutions
34
66
5.285***
% of companies with
cooperation with local
administration
46
54
1,103
% of companies with R&D
collaborations (research
centers...)
25
75
7,32**
% of companies with internal
communication network
42
58
2,14***
% of companies with external
communication network
39
61
6,64***
% of companies with suppliers
from the same region
79
21
1,25*
% of companies with local
expertise
32
68
3,66***
Source: Modeling results, output from STATA 15.0
Notes: P < 0.01 (***) ; P < 0.05 (**) ; P < 0.10 (*)
Values in parentheses represent the t-statistic.
The attributes of the company and its level of integration into the local network. The
estimation results regarding the impact of company size (in terms of number of employees) on the
probability of integration degree indicate a significant and positive relationship at the 5%
significance level for both categories (between 50 and 250 employees). Similarly, for the age of
companies, the obtained results reveal a significant relationship at the 5% significance level for the
category (11-20 years). Regarding research and development (R&D) expenditures, the estimation of
our model indicates the existence of a significant and positive relationship at the 10% significance
level. The estimation results (Table 7) regarding the location of residence (local expertise) of
company employees on the probability of innovation degree also indicate a significant and positive
relationship at the 1% significance level, with a coefficient of (+3.66). In other words, SMEs using
local expertise are more inclined to participate in the development process of their territory
compared to other companies. This highlights the crucial role of geographical proximity in
territorial development (Ferdj, 2021). Local expertise can thus be an essential element in SMEs'
contribution to the territorial development process. Similarly, for the variables of cooperation with
local institutions, companies with an internal and external communication network show a
significant relationship with a positive coefficient. In conclusion, companies heavily involved in
R&D activities and holding an internal and external communication network, in addition to
Ferdj, Y. & Djeflat, A. (2024). Territorial intelligence in Algeria, between network structuring and sustainable
development. Management and Entrepreneurship: Trends of Development, 2(28), 100-115.
https://doi.org/10.26661/2522-1566/2024-2/28-08
111
possessing local expertise, are particularly engaged in the process of structuring into the local
network (Ferdj & Djeflat, 2024).
DISCUSSION OF RESULTS
The analysis results indicate that the surveyed companies demonstrate their interest in
developing regular relations with local actors. The existence of intra-territorial links determines the
importance of geographical proximity by fostering the multiplication of inter-company connections
and also enabling a better understanding of partners (Ferdj, 2021). Indeed, these territorial
proximities constitute determining factors for territorial intelligence as they lay the foundation for a
comparative advantage (Ferdj, 2020). Similarly, we can state that geographical proximity perfectly
explains the observed industrial dynamics of the studied business fabric (Muñoz Cañavate &
Herrera-Barragán, 2019). However, we can say that it is the networking of various institutional
partners to obtain the buy-in of all, which is based on a process of dialogue and partnership. This is
the same principle as territorial intelligence, which embodies an alternative vision of local and
sustainable economic development, in which the synergy of actors becomes the key to successful
dynamism and promotes non-market cooperation and the development of resources built according
to an endogenous logic. It participates in a form of actors' engagement in the public sphere (Djeflat,
2007).
The interactionist dimension of territorial intelligence emphasizes the interactions and
relationships among various actors involved in the development of the territory. Unlike a traditional
approach that may focus solely on economic or institutional aspects, the interactionist dimension
recognizes that territorial development is shaped by a complex set of social, economic, cultural, and
political relationships (Ferdj and al, 2022). This dimension highlights several points:
1. Networks and collaborations: It underscores the importance of social networks and
collaborations among local actors, such as businesses, public institutions, community organizations,
and citizens. These collaborations can facilitate the sharing of resources, knowledge, and best
practices, which is essential for promoting sustainable and inclusive territorial development.
2. Co-construction of knowledge: It acknowledges that relevant knowledge for territorial
development does not only come from experts or decision-makers, but it can also be generated
through interactions and exchanges among various local actors. Thus, it encourages the co-
construction of knowledge, where the perspectives and experiences of each stakeholder are
considered in the decision-making process.
3. Citizen participation: It promotes active participation of citizens and local communities in
the planning and implementation of development policies and projects. This participation helps to
better address the needs and aspirations of local populations, while also strengthening their
engagement and ownership of development initiatives (Amraoui & Soulhi, 2019).
4. Adaptability and flexibility: It recognizes that territorial dynamics are often complex and
evolving, requiring flexible and adaptive approaches to respond to changes and emerging
challenges. By fostering interactions and collaborations among local actors, it contributes to
enhancing the capacity of territories to adapt and innovate in the face of changing contexts.
The interactionist dimension of territorial intelligence highlights the importance of social
interactions and collaborations among local actors in building sustainable, inclusive, and resilient
territorial development. It also underscores the essential role of citizen participation and co-
construction of knowledge in this process (Ferdj & djeflat, 2024).
MANAGEMENT AND ENTREPRENEURSHIP: TRENDS OF DEVELOPMENT
ISSUE 2 (28), 2024
112
CONCLUSION
Working on this paper, we saw that the process of territorial intelligence and network
structuring require a certain industrial organization, notably the organization into networks of open
and eager-to-exchange businesses. The territorial clustering of businesses strengthens competition
relations and the emergence of ecosystems conducive to exchange, knowledge transfer, innovation,
and value-added production at the local level.
In conclusion, the process of territorial intelligence in the province of Blida emerges as an
essential tool for understanding, planning, and promoting the economic, social, and environmental
development of the region. The results of our analyses highlight the importance of the territorial
anchoring of businesses, the valorization of local expertise, and the interaction among various local
actors in building sustainable and inclusive territorial development. The province of Blida benefits
from significant advantages, including its geographical proximity to the capital, Algiers, its diverse
natural resources, and its agricultural potential. However, it also faces challenges such as urban
congestion, pressure on natural resources, and socio-economic disparities between urban and rural
areas. In this context, territorial intelligence offers promising prospects for addressing these
challenges and fully exploiting the region's potential. By fostering collaboration among local actors,
valorizing endogenous resources, and promoting a participatory and inclusive approach to
development, territorial intelligence can contribute to strengthening the resilience and
competitiveness of the Blida province. It is therefore essential to continue investing in the
implementation of policies and projects based on a territorial intelligence approach, taking into
account the specificities and needs of the region. This will require effective coordination among
local authorities, businesses, civil society, and citizens, as well as ongoing commitment to the
sustainable and balanced development of the Blida province.
Territorial intelligence, as an emerging concept in the field of regional development, is
increasingly attracting interest in Algeria. In this perspective, the approach of territorial intelligence
offers an in-depth understanding of socio-economic and spatial dynamics at the local level. In
Algeria, where territorial development issues are crucial, adopting this approach allows for
exploring the complex interactions among local actors, territorial resources, and development
processes. To encourage the attractiveness of territories and local sustainable development, Algeria
has sought through various programs to establish the competitiveness of territories in new sectors
with high potential for innovation and thus position itself among countries integrating a knowledge-
based economy (Djeflat & Cummings, 2012).
In a developing country like Algeria, where the culture of sustainable development is still
relatively scarce within society, public authorities must play a significant role in informing and
raising awareness about environmental issues. Encouraging businesses and public entities to adopt
responsible behaviors is crucial to promote sustainable consumption and production patterns to
enhance the environmental and social performance of products and manufacturing processes. This
sustainable development framework should aim to build a shared culture around the challenges of
the territory and fully involve all its stakeholders. This objective, necessarily relying on time, is the
guarantee of strengthening the cohesion of the territorial community and the economic, social, and
environmental effectiveness of the community (Djeflat, 2017).
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РОЗВІДКА ТЕРИТОРІЙ В АЛЖИРІ: СТРУКТУРУВАННЯ МЕРЕЖІ ТА
СТАЛИЙ РОЗВИТОК
Younes Ferdj
Doctor of Economics and Applied Statistics
Senior Researcher, Centre for Research in
Applied Economics for Development (CREAD),
Algeria
Abdelkader Djeflat
Professor of Economics, Maghtech-DIM,
Clersé Lab, CNRS UMR 8019. Associate
Researcher CREAD,
Algeria
Розвідка територій в Алжирі являє собою захоплюючу і важливу сферу досліджень,
розташовану на перетині мережевого структурування і сталого розвитку. В умовах, коли
території відіграють життєво важливу роль у досягненні національних цілей, розвідка
територій стає стратегічним компонентом. Дослідження вивчає складну динаміку, пов'язану
з мережевим структуруванням територіальних суб'єктів, та її вплив на сталий розвиток.
Алжир, з його географічним, соціальним та економічним розмаїттям, забезпечує
сприятливий ґрунт для розуміння того, як розвідка територій може каталізувати співпрацю і
сприяти реалізації сталих ініціатив. Дослідження має на меті пролити світло на виклики і
можливості розвідка територій в конкретному контексті Алжиру, підкреслюючи її
потенційну роль як важеля для гармонійного і сталого розвитку. Ця робота переслідує дві
основні мети. По-перше, вона спрямована на роз'яснення концепції розвідки територій
шляхом висвітлення її колективного, трансформаційного та інтеракціоністського вимірів. В
сатті відображено існування взаємозалежностей і взаємних зв'язків між мережевою
структурою і місцевою промисловою динамікою. По-друге, в саттті досліджено питання
сталого розвитку територій в Алжирі, зокрема в провінції Бліда, відомій своєю специфічною
підприємницькою динамікою. Дослідження ґрунтується на кількісному статистичному
опитуванні за допомогою анкети, проведеному серед 110 компаній, розташованих у різних
промислових і ділових зонах провінції Бліда. Основні результати цього дослідження
підкреслюють, що географічна концентрація компаній дає можливість посилити конкурентну
взаємодію та сприяти появі екосистем, сприятливих для обміну, передачі знань, інновацій та
створення доданої вартості на місцевому рівні. Доведено, що розгортання процесів
територіального інтелекту та мережевої структуризації вимагає специфічної промислової
організації, включаючи створення відкритих і спільних мереж або кластерів компаній.
Ключові слова: територія, територіальний інтелект, сталий розвиток, мережа.
