THE PREREQUISITES FOR DIFFERENT TYPES OF SUCCESSFUL INTERFIRM COOPERATION IN THE SME- SECTOR

Abstract

The objective of this paper is to discuss the prerequisites and outcomes of interfirm cooperation of SMEs. Four sub-themes are involved in this discussion. First, different types of SME cooperation are defined. Second, the a priori outcomes of each type are presented. Third, the prerequisities of each type are listed, and fourth, short case histories are presented as manifestations of reality. The discussion, which is based on a longitudinal research project, stresses the importance of distinguishing between various types of SME cooperation. The types differ from each other in strategic intensity and in degree of formality. Five different types are identified: development circle, a loose cooperative circle, a project group, a joint venture, and a joint unit. We consider that as the prerequisities as well as the possible outcomes of different types of cooperation vary, those who are involved in promoting SME cooperation should be aware of these alternatives and the varying conditions of each of them.