Exploring interfirm collaboration processes of small- and medium-sized enterprises: an institutional logics perspective

Abstract

This research examines the formation and development processes of interfirm collaboration among SMEs in the context of institutional logics change in an emerging economy. Building on the microfoundations lens and the institutional logics perspective, the empirical investigation focuses on the qualitative study of the interfirm collaborative relationships among SMEs in China. The research findings underscore the significant role played by government-supported broker firms in fostering the formation and development of interfirm collaboration among SMEs. In particular, these broker firms first reproduce the institutional logics by means of championing government-promoted projects and events and diffusing government policies through their sensemaking and sensegiving. The reproduction of institutional logics by broker firms facilitates the formation and development processes of interfirm collaboration among SMEs which, over time, may lead to collaboration success occurrences that are predominantly manifested by success events, artefacts and stories. In the case of new meanings emergent from the collaboration success occurrences, broker firms tend to engage in legitimating these new meanings to transform the institutional logics. Thereby, this research contributes to the theoretical advancement in the fields of inter-organizational collaborations among SMEs and institutional logics.