Generally, Korean SMEs are less endowed in human, financial, and technological resources than large firms and are likely to be more reliant on collaborative forms of organizing. There are many motivating factors for Korean SMEs to engage in collaborative forms of organizing, including: getting access to markets, opportunities to develop their brands and gradually catch up with their large customers, thereby closing still existing competence and technology gaps. Collaboration with between SMEs and large Chaebols however may result in rather unequal collaborative arrangements due to the lack of both buyer and supplier power among SMEs.
Watch the movie to see how collaboration between KJI-Grundfos and Hansung Motor Company benefits both companies.