Inter-organizational Networking of Small and Medium-Sized Enterprises – A Framework and Hypotheses-Based Case Studies

Inter-organizational co-operation among networks of small and medium-sized enterprises (SMEs) is seen as an opportunity for these companies to hold their ground under the increased competition caused by global markets [1]. For the analysis of this complex topic the Institute of Computer Science and Social Studies (IIG) of the University of Freiburg, Germany, developed a theoretical, hypotheses-based framework [2]. It captures and structures the complex effects of the inter-organizational networking of SMEs on their competitiveness. In addition to the direct organizational influences, indirect information-technological and institutional factors are considered. The framework was refined by four case studies conducted by the IIG which also provided the first indications of its validity. Additionally, the case studies provide insight regarding the status quo of inter-organizational networking in Germany. This paper summarizes the results of the case studies structured according to the framework which is presented. Although the case studies do not provide a representative cross section, they give clear indications of the capacity and practical relevance of the hypotheses which are presented. Furthermore, they show that inter-organizational networks are perceived and implemented as a means of increasing competitiveness. Information and communication technology (ICT) is used only rudimentarily for the support of cooperative activities. Obstacles to co-operation result not only from problems regarding the provision of asymmetrical information and from a lack of support through third parties, but also from problems which occur as a result of the requirement for organizational adaptation and group-oriented decision processes.