Abstract
Under supply chain environment, in order to better operate in the market it is necessary that the small and medium enterprises (SME) are integrated into supply chains and rely on the supply chains' collaboration advantages. The SME can focus on an industry, form the SME cluster and further become the cluster supply chain by collaborative operation. In the process of integration there are cooperation and competition between the members of the cluster. The SME can participate in a supply chain or several supply chains if condition permission, establish collaboration relations with the large enterprises, carry out the supply chain's diversification strategy of the SME cluster, and will be provided more room for development..
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