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- Title
SME–supplier alliance activity in manufacturing: contingent benefits and perceptions.
- Authors
Arend, Richard J.
- Abstract
We address the following two questions: how upstream vertical alliance (UVA) activity affects the performance of small and medium-sized enterprises (SMEs); and how SME perceptions of that relationship influence the choice to engage in UVA activity. Using responses from a recent survey of business unit managers representing 200 SMEs, we find 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. And, while SME perceptions appear 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. Copyright © 2006 John Wiley & Sons, Ltd.
- Subjects
SMALL business; BUSINESS size; INDUSTRIAL surveys; STRATEGIC alliances (Business); MANAGEMENT; BUSINESS partnerships; FINANCIAL performance; EXECUTIVES; EMPLOYER attitude surveys
- Publication
Strategic Management Journal (John Wiley & Sons, Inc.) - 1980 to 2009, 2006, Vol 27, Issue 8, p741
- ISSN
0143-2095
- Publication type
Article
- DOI
10.1002/smj.538