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| Author: | Arend, R.J. |
| Title: | SME-supplier alliance activity in manufacturing: contingent benefits and perceptions |
| Journal: | Strategic Management Journal
2006 : AUG, VOL. 27:10, p. 741-763 |
| Index terms: | alliances manufacturing small and medium-sized enterprises (SMEs) suppliers |
| Language: | eng |
| Abstract: | This paper discusses the two following issues: how upstream vertical alliance (UVA) activity affects the performance of small and medium-sized entreprises (SMEs); and how SME perceptions of that relationships influence the choice to engage in UVA activity. Survey of business unit managers from 200 SMEs indicates that UVA activity benefits SME performance when self-selection effects are controlled. Instead of being a source of differentiation advantages, UVA activity leverages the SME's existing advantages. While SME perceptions seem to drive the self-selection of UVA activity, those perceptions are inaccurate; the result is that the SMEs likely to benefit less from such activity engage in it more. |
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