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Ph.D.
(Management)
ASSESSMENT OF ENABLERS AND INHIBITORS OF COLLABORATION
IN SMEs IN PHARMACEUTICAL CLUSTERS OF GUJARAT

Ph.D. Scholar : Mankodi Kunal Rasmikant
Research Supervisor : Dr. Mahendra S. Sharma

Regi. No.: 11146031005
Abstract :
Small and Medium Scale Enterprises (SMEs) are one of the major pillars of economic
growth world over, especially in the developing countries. SMEs are defined as enterprises
whose number of personnel fall below definite limit of <250 as in the European Union
(OECD, 2005). SMEs create job opportunities and provide services to large firms as
suppliers of components and parts. Larger firms tend to benefit from such transactions
due to the SME’s ability to produce the goods at a relatively cheaper price as they could
achieve economies of scale by producing one specialized product in bulk. Despite these
benefits, SMEs confront significant issues that hinder their survival and progress. SMEs
usually are under a lot of pressure to maintain competitiveness in local as well as
international markets. The changing nature of competition, technological advancements
and increasing customer needs exert a lot of pressure on SMEs. As SMEs tend to have
their business with larger organizations, they face important pressures such as quality
conformance in terms of competitive price with adequate product features and low
defect rates are some of the other significant challenges for SMEs. Moreover, SMEs face
the risk of liquidity due to paucity of financial resources, as compared to larger firms.

In order to reduce the threat of such challenges, forming collaborations may help the
SME to deliver on business demands that otherwise may be difficult to deliver on their
own. Hence, given the peculiar characteristics of an SME, forming a collaboration in the
form of strategic alliances with other firms, be it other SMEs or larger firms from the
same industry, may often form the basis of survival and growth for SMEs. Collaborations
helps firms in entering newer markets and segments, access knowledge and knowhow,
cultivate competences or develop existing market position. The relatively temporary
nature of collaborations helps a firm expand its boundaries without committing or
requiring extensive resources.

Research studies in the past have identified three common stages of collaboration –
Formation and Partner Selection; Governance and Design; and Post Formation
Collaboration Management. There has also been an extensive interest in identifying the
critical factors that impact the first stage – Formation and Partner Selection from
interorganizational collaboration perspective. However, the dynamics of such decision

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