Blackwell Reference Online

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Faced with rapidly changing markets, technology, governance and increased risks of independent actions, small and medium-sized firms (SMEs) are adopting alternative organizational models based on cooperation. Cooperative interfirm activities include forms that range from informal sharing of information to joint ventures, and all manner of agreements in between. Terminology such as cooperative strategies, networks and interorganizational cooperation has evolved to describe relations between organizations. Since the late 1980s, this terminology has become common as the frequency and scope of organizational alternatives has expanded. Kim and Maubourgne (1998) provide a “voluntary” notion of alliances as an overlay to the formation of alliance alternatives to explain success. SMEs are increasingly turning to alliances as vehicles for growth ( MacMillan 1983 ; Birley 1985 ; Aldrich and Zimmer; 1986 , Weaver and Dickson 1998 ). Some argue that SMEs are more opportunistic and less strategic in their approach to alliances, and therefore, a multilayered approach to alliance analysis that classifies individual firms as a micro level and environmental factors as macro levels should be considered. This multilayered analysis helps us to understand the development of alliances and their link to growth and development ( Monsted 1996 ). The need to look at the European Union, the Asian growth ... log in or subscribe to read full text