Co-operative behavior of handicraft, low- and high-tech micro-firms: Where do they differ?

Abstract

Purpose Though certain characteristics of micro-firms affect the likelihood of their participation in external relationships, how cooperation in craft enterprises differs from low and high-tech enterprises has not been investigated yet. Therefore, this study aims to fill the above gap in the literature. Design/methodology/approach This study adopts a descriptive approach by extensively reviewing relevant literature to explore the unique characteristics and nature of micro-firm's co-operative behavior. The theoretical approach of this research is grounded in resource-based view and dynamic capabilities theories. Findings This study finds that handicraft micro-firms possess special and unique characteristics that differentiate them from low- and high-tech firms. Further, handicraft micro-firms' co-operative behavior also differs from other firms in terms of cooperation motives, breadth, depth and factors that inhibit or promote cooperation. Additionally, in small handicraft firms, the co-operation is more informal, personal and through social networks, whereas in the corporate sector, it is more formal, direct and through supply chains. This study also argues that contrary to handicraft and low-tech firms, high-tech firms are more likely to cooperate with external partners and invest heavily in R&D for new product development (often radical in nature). Originality/value This study enriches our understanding of handicraft micro-firms' special and unique characteristics that differentiate them from low- and high-tech micro-firms. This research also provides in-depth knowledge to understand the handicraft micro-firms’ co-operative behavior and how it differs from low- and high-tech firms.