ABSTRACT

This chapter explores cooperation and interfirm alliances between small and medium sized enterprises (SMEs) as a potential strategy in achieving competitive advantage within a global environment. It takes an integrative perspective approaching the question why small and medium sized enterprises in the rapidly growing tourism sector should adopt a collaborative as opposed to an internalization strategy. The former approach builds on the unique position of tourism SMEs to connect different organizations and public and private partners sectors when fulfilling customer demands. Due to its ‘connective’ nature, tourism has the potential to act as a change agent. In this respect a network comprised of agricultural and touristic interests could result in social and economic synergies in regionally oriented development schemes.