Modelling different types of multilateral co-operation between SMEs

Abstract

This paper focuses on a theoretical modelling of multilateral SME co-operation. A major part of the previous research has been done on dyadic or bilateral relationships between two partners in a vertical chain although new co-operative ventures increasingly involve multiple partners. The objectives of the paper are to accomplish a conceptualization of different types of multilateral co-operation between SMEs as a synthesis of longitudinal empirical observations and selected theoretical discussions of inter-firm co-operation, to bring out possible advantages and prerequisites of successful co-operation of these types, and to show how co-operation can develop from one basic model to another. The main point in the modelling of SME co-operation is that those who plan, promote or build up co-operative arrangements must know right from the beginning what kind of co-operative model a group of firms will strive for, because the prerequisites of successful co-operation are emphasized differently in different types of co-operation. The empirical examples also suggest that co-operation leads to co-operation, i.e. when a company once joins a net, it is more probable that the company gets access to other nets as well. The basic challenge thus is to get the small or medium-sized company to enter its first co-operative arrangement.