The role of reputation in the business cooperation process: multiple case studies in small and medium-sized enterprises

Abstract

PurposeThis study aims to identify the main reasons for forming a cooperation agreement in the context of small and medium-sized enterprises (SMEs) and understand the role of reputation in this business process.Design/methodology/approachTo achieve these objectives, a qualitative research approach was adopted, specifically the case study method. The context of analysis studied here was formed of five SMEs (cases) located in an inland region of Portugal. Data-collecting instruments were individual interviews and documentary analysis, and the data treatment technique was content analysis.FindingsFrom the results obtained, it is concluded that SMEs have different reasons for entering a cooperation agreement and that the criterion of reputation, in the partner selection process, was quite frequently mentioned. In addition, the study found trust to be another important criterion when choosing a partner. This means that besides the resources a partner may possess, the most important aspect is that there should be mutual trust.Practical implicationsThis study seeks to help SME managers to characterise and understand the phenomenon of cooperation and show the main criteria to consider when choosing their partner(s).Originality/valueThis study is innovative because it will help to characterise and understand business cooperation in SMEs and contribute to choosing a suitable partner, so that SMEs can achieve good performance, major market expansion and improve relations with their partners, in an increasingly competitive environment.