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Horizontal and Vertical Relationships in Developing Economies: Implications for SMEs’ Access to Global Markets

  • Luiz F. Mesquita
  • Sergio G. Lazzarini
Chapter
Part of the International Studies in Entrepreneurship book series (ISEN, volume 26)

Abstract

We integrate resource-based-view, transaction-cost economics, and institutional theory to model how collaboration efforts among SMEs immersed in weak infrastructure and institutional environments help them achieve a host of collective efficiencies and greater access to global markets. Using a survey database from 232 Argentine furniture SMEs, we find that while vertical ties yield manufacturing productivity along the supply chain, horizontal ties enable the access to collective resources and joint product innovation. These collective efficiencies, in turn, serve as competitive currencies for SMEs to access global markets. We discuss implications for theory and practice.

Keywords

Supply Chain Global Market Product Innovation Collective Efficiency Transaction Cost Economic 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Notes

Acknowledgements

We thank Jay Anand, Oana Branzei, Patricia Friedrich, Robert Hoskisson, Werner Hoffman, Laura Poppo, Harbir Singh, Fred Walumbwa, Libby Weber, and seminar participants at Arizona State University, the University of Illinois in Chicago, and the University of Connecticut for comments and suggestions on earlier drafts. We also thankfully acknowledge Maria Belen Lopez Aleman for her research assistance with data-collection. This research received funds from the Inter American Development Bank and Brazil’s National Council for Scientific and Technological Development (CNPq), as well as institutional support from the IAE School of Management & Business, Universidad Austral, Argentina. An earlier draft of this research appeared in the Academy of Management Journal.

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Copyright information

© Springer Science+Business Media, LLC 2009

Authors and Affiliations

  1. 1.W. P. Carey School of BusinessArizona State UniversityGlendaleUSA
  2. 2.Insper Institute of Education & ResearchSão PauloBrazil

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