Abstract.A business community where communication can be streamlined, information shared and trust can be built can be considered as a collaborative network promoting SMEs long term sustainability by assuring quick response, fast time to market, differentiated offerings and competitive prices. This collaboration could be orchestrated both in hierarchical and non-hierarchical forms depending on the firms size, capacity and objectives. In this research, we have considered non-hierarchical networking among firms, especially for small and medium sized enterprises (SMEs), where the basic requirements are related with choosing appropriate business partners, building trust and sharing valuable information among them. In order to articulate the concept of this nonhierarchical collaboration, six pilot SMEs were analyzed and a methodological approach to manage these environments is proposed. A generic overview of different variables or factors necessary to build such business collaboration are presented and discussed critically in this study.