tive arrangements is quite broad, ranging from collective strategies, to strategic alliances, to cooperative strategies, to value added partnerships. Each of these terms, while sometimes used interchangeably, has a distinct definition. At the broadest level are "collective strategies." which generally occur within an industry and are a formal, systematic response by a set of organizations that collaborate. "Strategic alliances" are cooperative agreements that result in some type of business exchange or linkage across or within industries at a firm-to-firm level. "Cooperative strategies" are voluntary informal or contractual relationships where mutual collaboration results in risks and rewards. At the narrowest level are "value-added partnerships" defined as relationships between companies that work together to manage flows of goods and services within the value chain.
Further, Brush and Cagnetti (1996, p. 39) noted that:
Empirical research on cooperative strategies in entrepreneurship reflects two different theoretical approaches. The first stream employs transaction cost economics, which argues that firms will engage in cooperative arrangements to minimize costs and achieve efficiencies. Studies of high-tech companies have examined subcontracting relationships, the use of cooperative arrangements as competitive strategy, and the evolution of strategic alliances. The second theoretical approach follows social network theory, positing that the entrepreneurial process relies on premises of gathering scarce resources from the environment that are obtained through contacts and relationships with the entrepreneur's social network. Studies have examined the use of network relationships to implement competitive strategies, networking as a means of gaining business resources, and effects of cooperation in networking on innovative process and success.
As Schildt, Maula, and Keil (2005) note, corporate entrepreneurship has emerged as a...