How co-operative is co-operative purchasing in smaller firms?: Evidence from UK engineering SMEs

Most SMEs do not try to engage in co-operative purchasing arrangements, and even those that do don't handle them very well. Examining a sample of SME engineering firms from the UK Midlands for signs of more advanced practice, the authors identify three types of behaviour: firms with deliberate strategies (where co-operative purchasing is a consciously-designed and long-term part of management policy); firms with close ties with their suppliers but which still operate fundamentally adversarial policies (where, despite some development of practice, defensive, short-term and 'low-trust' attitudes still predominate) and those whose strategies, maybe of long standing, 'just happened' and are described as still emergent. The article analyses these positions to yield lessons for managers, recognising that, as firms grow, emergent strategies will need replacing with something more codified. (C) 2003 Elsevier Ltd. All rights reserved.