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The strategic dimension of the horizontal networks of SMOs: theorizations and evidences

Alsones Balestrin and Lilia Maria Vargas

RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), 2004, vol. 8, issue spe, 203-227

Abstract: The present article reflects upon the interorganizational networks topic, dealing with theoretical and conceptual aspects of the typologies of interorganizational networks and horizontal networks of small and medium organizations (SMOs), leading the debate to the central thesis: the network configuration as a strategic resource for competitiveness of the SMOs. Next, the methodological aspects are presented, as well as the results of a case study developed with a horizontal network of cooperation comprised by 44 SMOs of the clothing industry, located in the South Region of Brazil. Theoretical and empirical evidences indicate that the network configuration allows the SMOs to achieve benefits such as: greater information and knowledge exchange between companies, participation and sales of products in expositions, lobbying, improvement of enterprise processes, participation in conferences and training courses, price bargaining with suppliers, joint marketing, access to new representatives, greater guarantees in providing credit to customers, facilitated sales of inputs between companies, and gains in economies of scale, scope and specialization.

Date: 2004
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