ABSTRACT
In recent years, small-and medium-sized manufacturing enterprises (SMEs) have joined or formed cooperative interorganizational relationships, such as networks, to access resources for organizational growth without the constraints of vertical integration. Recent publications describe how ‘networks help small companies think and act big’ (Selz 1992) thus allowing SMEs to gain knowledge, resources, and customers that might only be available to much larger firms. Modelled after European network successes, US networks have focused on increasing member competitiveness through joint activities such as design, production and marketing. Since SMEs in the US have not traditionally formed ongoing, cooperative interfirm relationships, especially with competitors, the recent SME network phenomenon has spawned considerable interest in the US among researchers and practitioners alike. However, much of this work has served only to document the phenomenon, while describing some basic network characteristics and expected outcomes.
