Purpose The purpose of this paper is to investigate how small manufacturing firms develop and manage relationships with global suppliers and distributors. In so doing the authors aim to contribute to knowledge about SMEs and supply chain management (SCM). Design/methodology/approach The authors conducted 12 in-depth case studies of SME final assemblers of machinery in the French farm equipment sector. Findings The most effective form of global supply chain governance used by successful SMEs is informal networks involving managers in similar complementary firms, which serve to concatenate links with foreign suppliers and distributors. Research limitations/implications The principal limitation of this research is that it is specific to one sector and therefore questions of transferability are raised. Practical implications The important implication for managers in manufacturing SMEs is that links with other complementary local firms in the same sector need to be developed, leveraged and valued. Originality/value The originality of this case research is that the authors draw on inter-organisational boundaries, power asymmetries and network governance to develop a conceptual framework for the study of SMEs and global supply chains. By focusing on the perceptions of boundary-spanning managers, the authors show how, in circumstances of demand uncertainty, soft network governance is an effective strategic choice.

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Emerging economies can achieve substantial innovation with limited resources based on the analysis of demand (user needs) in contrast with the traditional RBV theory, which considers supply as the departure point of innovation.

Purpose Previous research suggests that negotiation style and conflict management strategies are influenced heavily by cultural factors. In the case of the Chinese, findings have largely produced stereotypical views about their behavior, but the authors argue that this position is becoming increasingly blurred in the global economy. Design/methodology/approach Data were collected using participant observation during negotiations of a free-trade agreement between China and Australia followed by in-depth interviews with Chinese delegates. Findings Consistent with Confucianism and a Taoism-based value system, there was evidence of strong cultural influence on conflict management approaches. Two a priori Chinese strategies were evident – avoidance and accommodating, with five tactics. However, contrary to previous research, the authors found use of two conflict management strategies normally associated with a western approach – competing and compromising, with five associated tactics. Practical implications Chinese negotiators are knowledgeable and capable of adopting western negotiation strategies and tactics. The authors advise managers involved in international negotiations with Chinese managers to be cautious when relying on historical stereotypical assessments and to think differently about the emerging Chinese negotiator. Originality/value Few published negotiation studies involve real negotiations based on actual observations, particularly in an international setting. Contrary to many published studies, we demonstrate that conflict management approaches used by Chinese negotiators have evolved into a blend of traditional Chinese and western styles.