Governance of Networks of Small Enterprises: A Knowledge Perspective - Some Case Studies in the Mechanical Industry in Italy

The idea of this work stems from the growing attention given to network of small specialized firm, as an alternative way of governance of the formal cooperative relations between enterprises in a context of market crisis. In this paper we focus on the manufacturing networks defined as groups of organizations, most of time small-sized, that combine their competencies and knowledge in order to achieve competitive advantage that would be difficult to achieve on an individual basis. Our primary underling concepts draw from the RBV and KBV of the firm. The methodology of multiple case studies is used with the purpose to understand the business success in an SME context. The cases were selected among the most significant cases of manufacturing networks in the mechanical industry in central Italy. The study shows five factors that, according to previous literature, are considered as key factors in the survival and development of networks. These are: Commitment, Governance mechanisms, Motivation for alliance, Broker roles, Absorptive capacity potential. The paper is intended to provide empirical prior evidence for future research as well as theoretical insights. From a practical perspective. The results provide support, in terms of managerial and policy implications, about how firms can manage knowledge practices in order to sustain the creation of successful manufacturing networks in periods of crisis.