The role of reputation in the business cooperation process : multiple case studies in small and medium-sized enterprises

Purpose: This study aims to identify the main reasons for forming a cooperation agreement in the context of small and medium-sized enterprises (SMEs) and understand the role of reputation in this business process. Design/methodology/approach: To achieve these objectives, a qualitative research approach was adopted, specifically the case study method. The context of analysis studied here was formed of five SMEs (cases) located in an inland region of Portugal. Data-collecting instruments were individual interviews and documentary analysis, and the data treatment technique was content analysis. Findings: From the results obtained, it is concluded that SMEs have different reasons for entering a cooperation agreement and that the criterion of reputation, in the partner selection process, was quite frequently mentioned. In addition, the study found trust to be another important criterion when choosing a partner. This means that besides the resources a partner may possess, the most important aspect is that there should be mutual trust. Practical implications: This study seeks to help SME managers to characterise and understand the phenomenon of cooperation and show the main criteria to consider when choosing their partner(s). Originality/value: This study is innovative because it will help to characterise and understand business cooperation in SMEs and contribute to choosing a suitable partner, so that SMEs can achieve good performance, major market expansion and improve relations with their partners, in an increasingly competitive environment.