Interorganizational relationships in small sized businesses and their insertion in supply chains

Abstract

This research sought to contribute to the understanding of how to configure the horizontal and vertical Small and Medium Enterprises (SMEs) relationships and which are the consequences for these firms in their insertion in supply chains. To this end, furniture companies data located in industrial district were used. This was a qualitative and quantitative research, developed through a comparative study of furniture companies located at Mirassol (São Paulo) and Ubá (Minas Gerais) poles. Data were collected through semi-structured interviews with support entities and businesses. The survey revealed the difficulty of these firms in developing collaborative relationships, what mean a barrier to integration of the supply chain. Besides the low inclination to closer relationships, the research revealed absence of strategies defined as suppliers and customers, showing inclination to transactional practices. The SMEs market behavior and characteristics of governance practices create difficulties for the inclusion of these companies into supply chains as suppliers, thus leaving the positioning as final goods producers, as competitors of larger companies.