The case of small freight forwarders in the High-Tech Forwarder Network
Abstract
The case of the global freight forwarding industry is one example where networks of small- to medium-sized enterprises (SMEs) are playing an increasingly important role. Internationalisation opportunities and competitive advantages may be obtained by SMEs in pooling their resources and exchanging information and expertise. This empirical case study examines horizontal collaboration between SMEs that consider their other network members, first and foremost, as competitors.
Introduction
A common trend in the literature related to collaboration between small- and medium-sized enterprises (SMEs) in recent years has been the development of strategically managed collaborative industry networks, e.g. Lorenzoni and Baden-Fuller (1995); Johnsen and Johnsen (1999). Such studies have identified that great benefits may be obtained by SMEs in pooling their resources and exchanging expertise for a variety of purposes, such as technology development or international market development. However, few empirical studies to date have examined horizontal collaboration between SMEs that consider their other network members, first and foremost, as competitors. Most of the literature on business networks refers to those alliances or networks that can be established by customers and suppliers, often with a large focal firm driving the development of the network. Johnsen and Johnsen (1999) affirm that research about internationalisation through networks has been mainly studied from the point of view of the relationships between manufacturers and suppliers, not from the perspective of companies that can be competitors in the same market.
This paper seeks to address this research area by examining the development of a network of SMEs formed by competitors originating from a range of countries in Europe and North and South America, for the purpose of international market development. Harland (1995) refers to strategically managed networks as comprising firms that have improved their competitive position through more effective harnessing of the resources that the network may offer. Additionally, Easton (1998) defines an industry network as a connected set of actors involved in similar economic processes which convert resources to finished goods and services for consumption by end customers, whether individuals or organisations. Increasingly, industry networks are