Tuesday 23 July 2024

Strategic collaboration 'key to SME development'

DUBAI, September 10, 2018

Strategic collaboration and exchanging resources with prestigious partners has a positive effect on the performance of small- and medium-sized enterprises (SMEs), according to a new Finnish study.

Published in Strategic Entrepreneurship Journal, the study was conducted in collaboration between researchers from the University of Vaasa, Aalto University and the University of Eastern Finland.

SMEs often have limited resources at their disposal, and this is why companies aiming at rapid internationalisation should consider collaboration with others. The study explored the types of partner affiliations that are beneficial for companies.

The findings indicate that in order for SMEs to enhance their performance, they should build partnerships and networks around collaboration helping them to acquire strategic resources, said the study.

Examples of such resources include product development expertise and access to distribution channels, which may be unique, rare and non-imitable, it said.

Furthermore, collaboration with prestigious partners and market leaders builds the credibility and identity of SMEs in their own networks.

According to Professor of International Business and Sales Mika Gabrielsson from the University of Eastern Finland, the resource-based theory sheds new, interesting light on corporate collaboration within SMEs, and the findings also have high managerial relevance.

Professor Gabrielsson said: “It seems that in addition to strategic exchange of resources, companies should also pay attention to reputation when selecting potential partners.”

According to Senior Researcher Jukka Partanen from the University of Vaasa, previous studies have shown that partner prestige and reputation are important especially in the early stages of a company.

“Our research shows that partner reputation continues to play a key role in an SME’s life also later on,” Partanen added. – TradeArabia News Service

Tags: | SME | development | Collaboration | strategic |

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