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Collaborating with rival firms is counterintuitive but can lead to mutual benefits if implemented successfully. This research paper investigates how horizontal collaboration amongst small businesses can support supply chain activities and lead to network enhancement. A cross-case analysis of five umbrella organisations, each consisting of multiple breweries, was performed. Their collaborative activities were investigated through semi-structured interviews, site visits, and documentation in this exploratory, qualitative study. The findings contribute to the development of a conceptual framework that shows the linkages between group formation, collaborative activities, and supply chain outcomes. Horizontal initiatives are dependent on the formation of a unifying umbrella organisation and the management resources required to form and sustain the group should not be underestimated. The comparison across five networks included in the study suggests that social mechanisms can lead to network development. However, the relationship between the umbrella organisation and its members needs to be formalised to ensure sustainable operations and the delivery of expected outputs.
Ramjaun et al. (Thu,) studied this question.