Labour Management Cooperation in SMEs: Forms and Factors

This study offers an in-depth look at the ways in which small and medium sized companies develop partnership between managers and workers to increase productivity and competitiveness. The existing literature on labour-management cooperation in SMEs is thin, and this study makes an important contribution to the field. Key areas examined include: *Why labour-management cooperation is important for SMEs; *The key prerequisite for developing effective cooperation concerning respect for workers' rights, conditions of work, and human resources management systems; *The motivating factors - environmental, market, and idiosyncratic - for developing cooperation in SMEs; *Existing obstacles to cooperation; and *The concrete benefits of cooperation realized by the particular enterprises studied. The study is unique in several respects. It provides a comprehensive look at cooperation, examining a range of factors that may influence the degree to which firms give priority to cultivating cooperation, and the form that cooperation takes. The study concentrates on the food-processing sector, which allows for more detailed analysis, including backward and forward linkages, which are particularly significant for most developing countries. It also focuses exclusively on developing countries, adding an important dimension missing from most academic studies. Lastly, the detailed case studies, which include interviews from both managers and workers from a range of enterprises, contribute substantially to advancing beyond stereotypes to a better understanding of the reality entrepreneurs and workers face in SMEs.