Abstract

Coopeting with other firms can be a necessary, but risky, strategy for small and medium-sized enterprises (SMEs). This chapter discusses specificities of small firms that make coopetition important for their growth and success, but also make them particularly vulnerable. Relationships with larger firms are especially challenging due to power asymmetry, and SMEs need to consider their entire portfolio of alliances to manage them. We explore capabilities needed by SMEs to cope with the challenges and define dimensions of alliance management and portfolio management capabilities. We also provide directions for further research.