Reframing Strategic Alliances as Transformative Strategies for SMEs: An ADO-TCM ‎Integrative Review

  • Authors

    • Akinlemi Omololu Akinson VIT Business School, Vellore Institute of Technology, Vellore, India
    • Sundara Rajan C. R. VIT Business School, Vellore Institute of Technology, Vellore, India
    https://doi.org/10.14419/amevc557

    Received date: October 19, 2025

    Accepted date: December 15, 2025

    Published date: January 4, 2026

  • Strategic Alliances; SMEs; Competitiveness; TCM-ADO Framework; Collaboration; Systematic ‎Literature Review‎.

  • Abstract

    Strategic alliances have become imperative for small and medium-sized enterprises (SMEs) to ‎mitigate the challenges of continuous constraints in resources, innovation, and market growth. ‎However, scholarly research on SME alliances is disjointed and isolated and does not often ‎connect why SMEs enter alliances, how alliances are structured, and what outcomes they ‎provide. This study fills this gap by offering an integrated, theory-informed synthesis of alliance ‎processes in SMEs. The SPAR-4-SLR protocol was used in a systematic literature review (SLR) ‎of 61 peer-reviewed articles published between 2014 and 2025. Data was retrieved from the ‎Scopus and Web of Science databases. The Theory-Context-Method (TCM) in conjunction with ‎the Antecedents-Decisions-Outcomes (ADO) framework was applied in the study, which ‎offered contextual and analytical depth. This review uncovers the multilayered dynamics of SME ‎alliances. SMEs seek alliances for resource access, develop adaptive capacities, venture into ‎digital ecosystems, and pursue sustainable objectives. Strategic decisions range from governance ‎to innovation and knowledge integration. The outcomes extend beyond firm performance to ‎innovation capacity, value creation, internationalization, and sustainability. The literature for the ‎study is, however, dominated by resource-based theory, so also is the methodology adopted by ‎most studies which concentrate on cross-sectional quantitative approaches for most of the ‎studies. This review uniquely bridges the fragmented alliance literature through a coherent TCM-ADO synthesis that explores alliance antecedents, strategic choices, and performance outcomes, ‎advancing an agenda that positions alliances as transformative tools and not compensatory tactics ‎for SME competitiveness in dynamic business environments‎.

  • References

    1. Adamik, A., Nowicki, M., & Szymańska, K. (2018). Openness to co-creation as a method of reducing the complexity of the environment and dy-namizing companies’ competitive advantages. Management & Marketing, 13(2), 880–896. https://doi.org/10.2478/mmcks-2018-0011.
    2. Alam, M. N., Masroor, I., Nabi, M. N. U., & Dornberger, U. (2024). Unveiling the synergy: Entrepreneurial effectuation and alliance-driven SME diversification. Review of International Business and Strategy, 34(4), 516–536. https://doi.org/10.1108/RIBS-12-2021-0173.
    3. Albats, E., Fiegenbaum, I., & Cunningham, J. A. (2021). A micro-level perspective on open innovation in small- and medium-sized enterprises: Evi-dence from the biotech sector. Journal of Small Business Management, 59(4), 678–704.
    4. Andres, B., Poler, R., & Guzman, E. (2022). The influence of collaboration on enterprises internationalization processes. Sustainability, 14(5), 2843. https://doi.org/10.3390/su14052843.
    5. Arora, M. (2015). Mergers and Acquisitions in Entrepreneurship for Gaining Strategic and Competitive Advancement. Pacific Business Review International, 8(6).
    6. Benitez, G. B., Ferreira-Lima, M., Ayala, N. F., & Frank, A. G. (2022). Industry 4.0 technology provision: The moderating role of supply chain partners in supporting technology providers. Supply Chain Management an International Journal, 27(1), 89–112. https://doi.org/10.1108/SCM-07-2020-0304
    7. Carraresi, L., Mamaqi, X., Albisu, L. M., & Banterle, A. (2015). Can strategic capabilities affect performance? Application of RBV to small food businesses. Agribusiness, 32(3), 416–436. https://doi.org/10.1002/agr.21451
    8. Chebo, A. K., & Wubetie, Y. ( F. (2021). The integrative business model as a linkage to venture growth: An insight from the outside the box of strategic decisions. Business Strategy & Development, 4(3), 358–370. https://doi.org/10.1002/bsd2.163.
    9. Cozzolino, A., Calabrese, M., Bosco, G., Signori, P., & Massaroni, E. (2023). Horizontal network collaboration by entrepreneurial ventures: A sup-ply chain finance perspective. Journal of Small Business and Enterprise Development, 30(3), 523–545. https://doi.org/10.1108/JSBED-08-2022-0341.
    10. Da Silva, A., & Cardoso, A. J. M. (2024). Value Creation in Technology-Driven Ecosystems: Role of coopetition in industrial networks. Journal of Theoretical and Applied Electronic Commerce Research, 19(3), 2343–2359. https://doi.org/10.3390/jtaer19030113.
    11. Della Corte, V., & Aria, M. (2016). Coopetition and sustainable competitive advantage. The case of tourist destinations. Tourism Management, 54, 524–540. https://doi.org/10.1016/j.tourman.2015.12.009.
    12. De La Garza, J. A. U. (2016). Business Networks in Tourism and Service Sectors for Competitiveness Improvement in Ciudad Juarez, Chihuahua, Mexico. A Case Study: Central Park Hermanos Escobar and Surrounding Sme's. Cuadernos De Turismo, (37), 543-545.
    13. Dyer, J. H., & Singh, H. (1998). The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Academy of management review, 23(4), 660-679. https://doi.org/10.5465/amr.1998.1255632.
    14. Eisenhardt, K. M., & Martin, J. A. (2017). Dynamic capabilities: what are they?. The SMS Blackwell handbook of organizational capabilities, 341-363. https://doi.org/10.1002/9781405164054.ch21.
    15. Emami, A., Welsh, D. H., Davari, A., & Rezazadeh, A. (2022). Examining the relationship between strategic alliances and the performance of small entrepreneurial firms in telecommunications. International Entrepreneurship and Management Journal, 18(2), 637-662. https://doi.org/10.1007/s11365-021-00781-3.
    16. European Commission. (2020). SMEs in the time of COVID-19: Challenges and responses. https://ec.europa.eu.
    17. Febriani, A., Sopha, B. M., & Wibisono, M. A. (2025). Dynamic capabilities for omnichannel transformation in MSMEs: A comparative case study of fashion and furniture sectors. Journal of Open Innovation Technology Market and Complexity, 100498. https://doi.org/10.1016/j.joitmc.2025.100498.
    18. Ferreira, A., & Franco, M. (2017). The mediating effect of intellectual capital in the relationship between strategic alliances and organizational per-formance in Portuguese Technology‐Based SMEs. European Management Review, 14(3), 303–318. https://doi.org/10.1111/emre.12107
    19. Findikoglu, N. M., Ranganathan, C., & Watson-Manheim, M. B. (2020). Partnering for prosperity: small IT vendor partnership formation and the establishment of partner pools. European Journal of Information Systems, 30(2), 193–218. https://doi.org/10.1080/0960085X.2020.1750309.
    20. Franco, M., Haase, H., & Rodrigues, M. (2024). The role of inter-organisational communication in the performance of strategic alliances: a relational perspective. EuroMed Journal of Business. https://doi.org/10.1108/EMJB-01-2024-0024.
    21. Gârdan, D. A., Dumitru, I., Gârdan, I. P., & Paștiu, C. A. (2020). Touristic SME’s Competitiveness in the Light of Present Challenges—A Qualita-tive approach. Sustainability, 12(21), 9191. https://doi.org/10.3390/su12219191
    22. Ghezzi, A., Cavallo, A., Sanasi, S., & Rangone, A. (2022). Opening up to startup collaborations: open business models and value co-creation in SMEs. Competitiveness Review an International Business Journal Incorporating Journal of Global Competitiveness, 32(7), 40–61. https://doi.org/10.1108/CR-04-2020-0057.
    23. Ghorbani, M., Acciaro, M., Transchel, S., & Cariou, P. (2022). Strategic alliances in container shipping: A review of the literature and future re-search agenda. Maritime economics & logistics, 24(2), 439-465. https://doi.org/10.1057/s41278-021-00205-7.
    24. Gutiérrez, L. a. B., Escobar, C. R., Toledo, M. R., Pérez, A. M., Alayo, M. I., & Martínez, P. J. (2020). Análisis de los factores de competitividad para la productividad sostenible de las PYMES en Trujillo (Perú) || Analysis of competitiveness factors for the sustainable productivity of SMEs in Trujillo (Peru). Revista De Métodos Cuantitativos Para La Economía Y La Empresa, 29(1), 208–236. https://doaj.org/article/e9ff1efe5a29486f88d56efe8f5fdc1e. https://doi.org/10.46661/revmetodoscuanteconempresa.3513.
    25. Hariastuti, N. L. P., Pratikto, P., Santoso, P. B., & Tama, I. P. (2021). Analyzing the drivers of sustainable value creation, partnership strategies, and their impact on business competitive advantages of small & medium enterprises: a PLS-Model. SSRN Electronic Journal. https://doi.org/10.15587/1729-4061.2021.228864
    26. He, Q., Meadows, M., Angwin, D., Gomes, E., & Child, J. (2020). Strategic Alliance Research in the Era of Digital Transformation: Perspectives on Future research. British Journal of Management, 31(3), 589–617. https://doi.org/10.1111/1467-8551.12406
    27. Hung, S. C., Hung, S. W., & Lin, M. J. J. (2015). Are alliances a panacea for SMEs? The achievement of competitive priorities and firm perfor-mance. Total Quality Management & Business Excellence, 26(1-2), 190-202. https://doi.org/10.1080/14783363.2014.927133.
    28. Idris, F., Susita, D., & Buchdadi, A. D. (2020). Enhancing the small medium enterprises competitive advantage through SMEs strategic alliances. Management Science Letters, 2113–2118. https://doi.org/10.5267/j.msl.2020.1.018
    29. ILO. (2022). World Employment and Social Outlook – Trends 2022. International Labour Organization. https://doi.org/10.1002/wow3.179
    30. Israel, B. (2024). Collaborative relationships: a stimulus for innovation culture and participation of SMEs in public procurement. Management Deci-sion. https://doi.org/10.1108/MD-08-2023-1338.
    31. Izotova, A., & Bolívar-Ramos, M. T. (2024). The effects of the functional and geographical breadth of collaborations on radical innovation perfor-mance: the moderating role of firm size. Journal of Business and Industrial Marketing, 39(13), 216–232. https://doi.org/10.1108/JBIM-01-2024-0011
    32. Jones, S. L., Fawcett, S. E., Wallin, C., Fawcett, A. M., & Brewer, B. L. (2014). Can small firms gain relational advantage? Exploring strategic choice and trustworthiness signals in supply chain relationships. International Journal of Production Research, 52(18), 5451–5466. https://doi.org/10.1080/00207543.2014.915068.
    33. Kafigi, J. E. (2015). Strategic alliances and competitive advantage in Tanzanian SMEs: A resource-based perspective. African Journal of Business Management, 9(12), 512–523.
    34. Khouroh, U., Abdullah, F., & Handayani, K. (2019). The role of strategic alliance in mediating the relationship between environmental dynamism and sustainable competitive advantage. International Journal of Scientific and Technology Research, 8(9), 469–475. https://www.ijstr.org/paper-references.php?ref=IJSTR-0919-21985.
    35. Kolade, O., Obembe, D., & Salia, S. (2019). Technological constraints to firm performance: The moderating effects of firm linkages and coopera-tion. Journal of Small Business and Enterprise Development, 26(1), 85-104. https://doi.org/10.1108/JSBED-01-2018-0029.
    36. Kumalasari, R. D., Sudiro, A., Rofiaty, R., & Djumahir, D. (2025). The development of business environment dynamics to improve the relationship between network capability and MSME performance. Eastern-European Journal of Enterprise Technologies, 1(13 (133)), 69–77. https://doi.org/10.15587/1729-4061.2025.318050.
    37. Kumar, R., Singh, R. K., & Shankar, R. (2016). Study on collaboration and information sharing practices for SCM in Indian SMEs. International Journal of Business Information Systems, 22(4), 455. https://doi.org/10.1504/IJBIS.2016.077838.
    38. Le, S. T., Pham, T. Y., Dao, V. T., & Phung, M. T. (2021). Factors influencing horizontal cooperation among logistics enterprises: An empirical study from Vietnam. The Journal of Asian Finance, Economics and Business, 8(12), 313-322.
    39. Li, C., & Shafait, M. (2025). Assessing the impact of network embeddedness on SMEs innovation performance through resource bricolage: a medi-ated-moderated model. Operations Management Research. https://doi.org/10.1007/s12063-024-00538-5.
    40. Li, J., Peng, D., & Yu, Y. (2025). Does embeddedness in strategic alliances matter for innovation efficiency? The moderating roles of government R&D subsidies and standardization. Business Process Management Journal, 31(3), 996-1025. https://doi.org/10.1108/BPMJ-04-2024-0304.
    41. Mamédio, D., Rocha, C., Szczepanik, D., & Kato, H. (2019). Strategic alliances and dynamic capabilities: A systematic review. Journal of strategy and management, 12(1), 83-102. https://doi.org/10.1108/JSMA-08-2018-0089
    42. McAdam, M., McAdam, R., Dunn, A., & McCall, C. (2014). Development of small and medium-sized enterprise horizontal innovation networks: UK agri-food sector study. International Small Business Journal Researching Entrepreneurship, 32(7), 830–853. https://doi.org/10.1177/0266242613476079.
    43. Milanesi, M., Guercini, S., & Runfola, A. (2020). Network competence and strategic alliances in SMEs: A relational perspective. Journal of Busi-ness & Industrial Marketing, 35(7), 1165–1176. https://doi.org/10.1108/JBIM-11-2019-0475
    44. Mmieh Kwakye, R., Qu, L., & Wang, Y. (2025). Sustainability practices and complementor innovation capability: a PLS-SEM serial mediation model of market pressure and strategic alliances. Business Process Management Journal, 1-23. https://doi.org/10.1108/BPMJ-03-2025-0315.
    45. OECD. (2023). Financing SMEs and Entrepreneurs 2023: An OECD Scoreboard. https://www.oecd.org.
    46. Oyedele, A., & Firat, F. (2020). Institutions, small local firms’ strategies, and global alliances in sub-Saharan Africa’s emerging markets. Interna-tional Marketing Review, 37(1), 156-182. https://doi.org/10.1108/IMR-01-2019-0022.
    47. Paul, J., and A. R. Criado. (2020). “The Art of Writing Literature Review: What Do We Know and What Do We Need to Know?” International Business Review 29, no. 4: 101717. https://doi.org/10.1016/j.ibusrev.2020.101717
    48. Paul, J., Lim, W. M., O’Cass, A., Hao, A. W., & Bresciani, S. (2021). Scientific procedures and rationales for systematic literature reviews (SPAR‐4‐SLR). International Journal of Consumer Studies, 45(4). https://doi.org/10.1111/ijcs.12695.
    49. Peng, M. Y. P. (2025). The role of international strategic alliance and dynamic internationalization capability in building competitive advantage for SMEs: evidence from Taiwan. Humanities and Social Sciences Communications, 12(1), 1-14. https://doi.org/10.1057/s41599-025-05076-4.
    50. Pérez‐Bernabeu, E., Juan, A. A., Faulin, J., & Barrios, B. B. (2014). Horizontal cooperation in road transportation: a case illustrating savings in dis-tances and greenhouse gas emissions. International Transactions in Operational Research, 22(3), 585–606. https://doi.org/10.1111/itor.12130.
    51. Prabhu, M. H., & Srivastava, A. K. (2023). Modeling transformational leadership, supply chain collaboration and firm performance – a case of In-dia. International Journal of Emerging Markets, 19(10), 2642–2660. https://doi.org/10.1108/IJOEM-04-2022-0651.
    52. Pu, G., Qamruzzaman, M., Mehta, A. M., Naqvi, F. N., & Karim, S. (2021). Innovative Finance, Technological Adaptation and SMEs Sustainabil-ity: The Mediating Role of Government Support during COVID-19 Pandemic. Sustainability, 13(16), 9218. https://doi.org/10.3390/su13169218
    53. Qiu, X., Haugland, S. A., & Cassia, F. (2025). Tacit knowledge transfer in strategic alliances: the roles of theory of mind and interpersonal trust. Journal of Business & Industrial Marketing. https://doi.org/10.1108/JBIM-09-2023-0555.
    54. Rahman, A. a. A., Chong, P. L., Ong, T. S., Teh, B. H., & Ong, T. C. (2023). Business network and balanced scorecard: An analysis of small and medium enterprises in Malaysia. Arab Gulf Journal of Scientific Research, 42(3), 621–635. https://doi.org/10.1108/AGJSR-10-2022-0218
    55. Rahnama, R., Mousavian, S. J., & Ebrahimi, M. (2022). The role of digital transformation in strategic alliances for SME competitiveness. Journal of Strategy and Management, 15(4), 567–584. https://doi.org/10.1108/JSMA-03-2021-0067.
    56. Ramjaun, T. I., Pullman, M., Kumar, M., & Rodrigues, V. S. (2023). Strength in numbers: collaborative procurement and competitiveness of craft breweries. International Journal of Operations & Production Management, 44(3), 643–665. https://doi.org/10.1108/IJOPM-08-2022-0503
    57. Rapaccini, M., Cinquini, L., Mauro, S. G., & Tenucci, A. (2024). Servitisation of SMEs through strategic alliances: The role of intellectual capi-tal. European Management Review, 21(2), 425-442. https://doi.org/10.1111/emre.12588.
    58. Rodrigues, M., Franco, M., Silva, R., & Oliveira, C. (2021). Success Factors of SMES: Empirical study guided by Dynamic Capabilities and Re-sources-Based View. Sustainability, 13(21), 12301. https://doi.org/10.3390/su132112301.
    59. Sari, R. E., Arief, M., Hamsal, M., & Rahim, R. K. (2024). Determinants of sustainability performance in information technology companies: Coop-eration through strategic alliances and business strategies. Problems and Perspectives in Management, 22(4), 310. https://doi.org/10.21511/ppm.22(4).2024.24.
    60. Sen, S., Savitskie, K., Mahto, R. V., Kumar, S., & Khanin, D. (2022). Strategic flexibility in small firms. Journal of Strategic Marketing, 31(5), 1053–1070. https://doi.org/10.1080/0965254X.2022.2036223
    61. Siagian, H., Basana, S. R., Tarigan, Z. J. H., Novitasari, M., & Jie, F. (2024). Role of supply chain management in improving competitive advantage of Indonesian small and medium enterprises. Problems and Perspectives in Management, 22(2), 696–707. https://doi.org/10.21511/ppm.22(2).2024.54
    62. Singh, R. K., Luthra, S., Mangla, S. K., & Uniyal, S. (2019). Applications of information and communication technology for sustainable growth of SMEs in India food industry. Resources Conservation and Recycling, 147, 10–18. https://doi.org/10.1016/j.resconrec.2019.04.014
    63. Siriphattrasophon, S. (2018). The ASEAN Economic Community: How SMEs could exploit local value to compete ABAC Journal, 38(1). http://www.assumptionjournal.au.edu/index.php/abacjournal/article/download/3353/2072.
    64. Soriano F. A., Villano R. A., Fleming, E. M., & Battese, G. E. (2019). What's driving innovation in small businesses in Australia? The case of the food industry. Australian Journal of Agricultural and Resource Economics, 63(1), 39-71. https://doi.org/10.1111/1467-8489.12284.
    65. Sucena, A., Matos, F., & Nunes, A. (2025). The effect of intellectual capital and strategic partnerships in construction companies. Managerial Fi-nance. https://doi.org/10.1108/MF-11-2024-0872.
    66. Takyi, L., Naidoo, V., & Amankwah-Amoah, J. (2022). Strategic alliances and internationalization of SMEs: The role of government support in emerging economies. International Business Review, 31(5), 101912.
    67. Thelisson, A., & Jacquemot, F. (2025). International expansion of French SMEs as a growth lever – insights from a case study. Strategy and Lead-ership. https://doi.org/10.1108/SL-09-2024-0092.
    68. Tyll, L., Srivastava, M., & Hromádka, M. (2020). Strategic alliances between Czech SMEs and its effects on firm’s competitiveness. Journal of East European Management Studies, 25(2), 246–263. https://doi.org/10.5771/0949-6181-2020-2-246.
    69. Vanags, A., Ābeltiņa, A., & Zvirgzdiņa, R. (2018). Partnership strategy model for small and medium enterprises. Problems and Perspectives in Management, 16(1), 336–347. https://doi.org/10.21511/ppm.16(1).2018.33.
    70. Wang, Y., & Rajagopalan, N. (2015). Alliance capabilities: A review and research agenda. Journal of management, 41(1), 236-260. https://doi.org/10.1177/0149206314557157
    71. Wahyudi, S., Yogia, M. A., & Amrillah, M. F. (2023). Unlocking User-Driven innovation and sustainable Competitive advantage through Partner-ship: an Open Innovation perspective. Scientific Papers of the University of Pardubice. Series D, Faculty of Economics and Administration, 31(1). https://doi.org/10.46585/sp31011650.
    72. World Bank. (2024). Small and medium enterprises (SMEs) finance: Improving access to finance for SMEs. World Bank Group. https://www.worldbank.org/en/topic/smefinance.
    73. Yao, Y., Li, M., & Lian, H. (2024). How Eco-Participating Firms can Increase their willingness to Cooperate Sustainability: A perceived contractual equity perspective. Sustainability, 16(23), 10541. https://doi.org/10.3390/su162310541
    74. Yang, H., Zheng, Y., & Zhao, X. (2013). Exploration or exploitation small firms’ alliance strategies with large firms. Strategic Management Journal, 35(1), 146–157. https://doi.org/10.1002/smj.2082.
    75. Yoon, C., Lee, K., Yoon, B., & Toulan, O. (2017). Typology and success factors of collaboration for sustainable growth in the IT service industry. Sustainability, 9(11), 2017. https://doi.org/10.3390/su9112017.
    76. Zhao, L. (2014). Strategic alliances in SMEs: A review and research agenda. International Journal of Entrepreneurship and Small Business, 21(3), 345–362.

  • Downloads

  • How to Cite

    Akinson, A. O. ., & C. R. , S. R. (2026). Reframing Strategic Alliances as Transformative Strategies for SMEs: An ADO-TCM ‎Integrative Review. International Journal of Accounting and Economics Studies, 12(8), 1037-1053. https://doi.org/10.14419/amevc557