News

Collaboration with strategically important and prestigious partners enhances SME performance

The study has been published in Strategic Entrepreneurship Journal.

Strategic collaboration and exchanging resources with prestigious partners seems to attract more partners and customers, which, in turn, has a positive effect on the performance of small- and medium-sized enterprises, a new Finnish study shows. 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. Examples of such resources include product development expertise and access to distribution channels, which may be unique, rare and non-imitable. 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.

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

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,” Senior Researcher Partanen says.

”In addition to the fact that the resources received from the networks complete the company's own resources, they make the company more interesting as a collaboration partner to new partners as well", continues Assistant Professor Olli-Pekka Kauppila from the School of Business.

Further information:
Assistant Professor Olli-Pekka Kauppila
Aalto University School of Business
[email protected]
tel. +358 50 312 0930

Research article:
Turning strategic network resources into performance: The mediating role of network Identity of small – and medium-sized enterprises” Jukka Partanen, Olli-Pekka Kauppila, Fabian Sepulveda, Mika Gabrielsson on ladattavissa osoitteesta https://onlinelibrary.wiley.com/doi/abs/10.1002/sej.1296

  • Published:
  • Updated:
Share
URL copied!

Read more news

Participant of the Unite! event
Research & Art Published:

Unite! staff gathered to define an open science and innovation roadmap

On the 8th and 9th of June 2021, Aalto led the first Unite!H2020 Bootcamp: “What is Open in Open Science?”
Tree on lawn
Press releases, Research & Art Published:
Lithium ion battery electrodes and cells, researcher Taina Rauhala, photo Valeria Azovskaya, 2017
Cooperation, Research & Art Published:

Safer and more efficient rechargeable lithium batteries – Aalto is taking part in new corporate cooperation projects

International projects aim to develop new more environmentally friendly materials and production methods for rechargeable lithium batteries
Etäläsnäolorobotin toimivuutta testattiin projektin aikana eri kohteissa ja palaute oli positiivista. Kuva: VTT
Press releases, Research & Art Published:

Researchers: Service robotics will be part of a nurse's job in ten years

The six-year ROSE project focused on issues such as remote presence robots and power vests for nurses. Experiences were positive, but the technical development of robotics is not yet up to the required level. A road map for the sustainable extensive utilisation of care robotics has been published in connection with the project.