Collaboration in the Small and Micro Enterprises: A Relational View of Enablers and Barriers

The purpose of this paper is to investigate the enablers and barriers of collaboration among small and micro firms in the supply chains through relational theory lens. The study uses multiple data collection methods including three focus groups and thirteen interviews with micro and small breweries in Wales, UK to achieve triangulation and improve reliability and validity of findings. The study reveals that enablers of horizontal collaboration among micro and small firms are categorized into relation specific assets including human, site and physical assets such as packaging plant and sharing equipment, knowledge sharing routines, complementary resources and capabilities, and effective governance mechanisms. The following barriers were identified that may inhibit collaboration: asset interconnectedness and difficulties dealing with interdependence while partners are competing over resources; scarcity in finding a qualified partner for collaboration; resource indivisibility including dealing with free riders and resistance to change; and finally institutional environment and regulations affecting collaboration between firms in the brewery sector. The contribution this research brings to the literature is two folded; firstly, the research developed a horizontal collaboration model underpinned by the relational theory and refined through explanatory research enquiry undertaken in the context of micro and small enterprises; and, secondly, the study complements previous horizontal collaboration literature, which focuses mainly on collaborative partnerships among large enterprises, by generating evidence on enablers and barriers of collaboration among micro and small enterprises."