Horizontal and vertical relationships in developing economies: Implications for SMEs' access to global markets

Luiz Mesquita, Sergio G. Lazzarini

Research output: Contribution to journalArticle

175 Scopus citations

Abstract

We integrate the resource-based view, transaction cost economics, and institutional theory to model how collaboration among small-to-medium-sized enterprises (SMEs) in environments of weak infrastructure and institutions help them achieve greater collective efficiencies and access to global markets. Using survey data from 232 Argentine furniture SMEs, we found that different types of ties matter in different ways for these SMEs' collective efficiencies. For instance, vertical ties yield manufacturing productivity along the supply chain, while horizontal ties enable collective resource use as well as joint product innovation. These collective efficiencies, in turn, serve as competitive currencies helping SMEs access global markets. Copyright of the Academy of Management, all rights reserved.

Original languageEnglish (US)
Pages (from-to)359-380
Number of pages22
JournalAcademy of Management Journal
Volume51
Issue number2
DOIs
StatePublished - Apr 2008

ASJC Scopus subject areas

  • Business and International Management
  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation

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