Resource sharing in interfirm alliances between SMEs and large firms and SME access to finance

Purpose This study aims to investigate the role of interfirm alliances in the form of resource sharing in influencing the access to finance of small- and medium-sized enterprises (SMEs) in Malaysia. Further, the effect of different forms of resource sharing – tangible and intangible – is also studied. Design/methodology/approach Survey questionnaire was distributed to 456 SMEs in the manufacturing sector and a total of 146 responses were gathered. However, out of these, only 88 responses could be used as only these SMEs had alliances with large firms. Investigation into the relationship between interfirm alliances and SME access to finance was carried out using structural equation modeling – partial least squares. Findings It is found that interfirm alliances play a significant positive role in influencing SME access to finance. As interfirm alliances are measured as the extent of resource sharing, further analysis is carried out on the different forms of resource sharing, i.e. tangible and intangible. Tangible resource (asset and cost) sharing significantly influences SME access to finance but intangible resource (knowledge and information) sharing does not. Originality/value This study contributes to the understanding of the effects of interfirm alliances on the financing of SMEs. So far, most studies have only focused on the management and technological gains of interfirm alliances. Therefore, this study contributes significantly to literature on resource sharing among firms.

Drivers of and barriers to partner switch in interfirm alliances: a conceptual model

Historically, research on alliance termination assumes that alliance partners only withdraw from alliances in the event of alliance failure (failure-driven alliance termination). However, recent research on the dissolution of alliances shows that firms also withdraw from alliances through alliance partner switch when they find options with higher match quality than the current partner (option-driven alliance termination). This paper builds on previous work in that field and develops a comprehensive conceptual model of drivers of and barriers to partner switch in interfirm alliances. Based on matching theory, the rectification of alliance partner fit is defined in relation to strategic need, social status and social power as the main drivers and switching costs, social embeddedness and social norms as the main barriers to partner switch. Furthermore, it is argued that market uncertainty and behavioural uncertainty as well as the financial strength and social status of the focal firm have a moderating effect on such drivers and barriers.

Collaborative Market Making

Extant work has identified many aspects of market formation including the mechanisms and processes associated with the origins of new markets and the trajectories of market emergence. However, the critical role of interfirm alliances in the formation of new markets still remains unexplored. This chapter brings forward interfirm alliances as a critical tool for firms to fuel the formation of new markets, which are often characterized by high levels of demand, supply, and regulatory uncertainty. To take a systematic look at the role of alliances in market formation, the chapter first describes the different alliance forms under the general categories of dyadic and multipartner alliances. Within these categories, the chapter discusses the potential impact of the respective alliance type on reducing different levels of uncertainty and catalyzing market emergence. It also provides an extensive discussion of the challenges that firms typically face within each type of alliance with regards to market formation. The chapter concludes with directions for future research in exploring alliances as tools for market formation.