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

Luiz Mesquita, Sergio G. Lazzarini

Research output: Contribution to journalArticle

166 Citations (Scopus)

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
StatePublished - Apr 2008

Fingerprint

Industry
Supply chains
Innovation
Productivity
Economics
Developing economies
Vertical relationships
Small to medium-sized enterprises
Global market
Costs
Product innovation
Resource use
Institutional theory
Currency
Joint products
Transaction cost economics
Survey data
Manufacturing
Resource-based view
Economic theory

ASJC Scopus subject areas

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

Cite this

Horizontal and vertical relationships in developing economies : Implications for SMEs' access to global markets. / Mesquita, Luiz; Lazzarini, Sergio G.

In: Academy of Management Journal, Vol. 51, No. 2, 04.2008, p. 359-380.

Research output: Contribution to journalArticle

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