Knowledge capability flows in buyer-supplier relationships: Challenges for small domestic suppliers in international contexts

Author： Moreira António Carrizo

Publisher： Emerald Group Publishing Ltd

ISSN： 1462-6004

Source： Journal of Small Business and Enterprise Development, Vol.16, Iss.1, 2009-02, pp. : 93-114

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Abstract

Purpose ‐ The purpose of this paper is to understand how suppliers have managed to accumulate knowledge in their relationship with large multinational clients. Design/methodology/approach ‐ The methodology was based on four case studies' qualitative data, collected from semi-structured, in-depth interviews. The buyers were selected among the largest MNEs of the electronics, automotive and footwear industries and the suppliers were selected among the set of SMEs supplying to those MNEs. The objective was to assess the supplier's knowledge transfer-oriented capabilities and the buyer's interaction-oriented capabilities in the SBR. Findings ‐ The paper highlights the important leading role of the client in the buyer-supplier relationship involving SMEs as well as the knowledge-sharing atmosphere of successful cooperative relationships. Although it confirms the advantages of alliances for SMEs, knowledge transfer-oriented capabilities, are used by SMEs in order to sustain client satisfaction and to strengthen their core competencies. Despite all efforts of SMEs, if clients are not willing to use interaction-oriented capabilities, buyer-supplier relationships are doomed to failure. Research limitations/implications ‐ One practical implication is that, if SMEs are adequately supported by public policies, it is possible to transfer knowledge from more advanced to less endowed economies . The main limitation stems from the fact that it is not possible to claim generalisation as the research is the result of a series of four case studies. Originality/value ‐ The paper uses dyadic relationships as a viable option to compensate internal knowledge deficiencies of SMEs in their relationship with MNEs. It complements former research as little is known about the importance of alliances in the context of knowledge acquisition and learning in SMEs. It contributes to the SME scientific literature by investigating how SMEs learn from their alliance partners.