Abstract
Corporation alliance can increase advantages and decrease risks for SMEs. However, the concerned survey shows that supplier alliance situation is far away from the ideal status in China. Thus, this paper sets up an alliance realizing process model, and find out five key process point of supplier alliance, include potential benefits, perceivable benefits, realizable benefits, realized benefits, and benefits distribution. Among that, core competence, alliance consciousness, trust and control, and specific investment are the decisive forces to push forward alliance process. Based on the model and survey data, the nature of supplier management in Chinese SMEs are found out and discussed.
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