Global patterns of industrial production have resulted in relocation of industrial operations groups in an effort to create new markets for mass and customised mass production. The collaborative effort between these dispersed teams increases the likelihood of combining ideas and knowledge in novel ways. Internet technologies enable these virtual collaboration networks to seamlessly engage in discussions that demonstrate a richness of perspectives when it comes to problem-solving and innovative idea-exchange. Indeed, knowledge creation and harnessing collective knowledge are salient features of collaborative networks (CNs) and this is witnessed by a new interest in these entities. However, small and medium enterprises (SMEs) display a difficulty in partnering and collaborating in global networks, especially since their technological infrastructure may be lacking. Given the widespread adoption of collaborative technologies in social contexts, this research seeks to examine how such informal interactions are facilitated in SMEs through Web 2.0 tools. Specifically, this paper seeks to contribute to existing literature by examining how Web 2.0 affects the collaborative effort in two SME CNs; this study demonstrated that the collaboration effort is amplified when Web 2.0 tools are available. Other parameters such as trust in other members' ability; perception of usefulness; and enhancement of collective knowledge are seen as supporting the CN mutuality. In addition, it brings together the three diverse research areas of collaborative networks, internet collaborative tools and psychological barriers and enablers.