Interfirm Cooperation among Small Manufacturing Firms

Abstract

This article evaluates interfirm cooperation among small manufacturing firms. Networks of small firms work together on numerous activities such as marketing, procurement or manufacturing; however, are certain `enablers' necessary for successful cooperation? To answer this question networking activities among small manufacturers were investigated. Over the course of 12 months 23 in-depth interviews were conducted: 7 with network brokers (network brokers identify opportunities, bring small firms together and facilitate cooperation), 2 with small firm business associations with an acknowledged stance on the benefits of small firm cooperation and 14 with small firms engaged in interfirm cooperation. These semi-structured discussions explored the key characteristics of successful networks, the motives for initiating a cooperative relationship, how firms managed appropriation concerns and how they coordinated tasks.The findings indicate a clear demarcation between networking activities that are led by brokers and those that are created of the participating firms' own volition.