ECONOMIC ALLIGNMENT FOR THE ADVANCEMENT OF SMALL BUSINESS

Abstract

Despite the increased chance of success, little is known about the processes that make cooperative business partnerships really succeed. Collaboration's essential action alignment might potentially aid in solving real-world problems like coordinating efforts and increasing revenue. Cooperation and non-economic happiness are examples of intangible social concerns that fall within the purview of social alignment. Understanding the fundamentals of cooperation is necessary for delving into the processes that underpin successful cooperation. We used structural equation modeling to decipher the replies of SMEs to a survey on their partnerships with their vendors. The positive correlation between cooperation and action alignment (economic enjoyment) demonstrates the usefulness of cooperation in bridging the gap between the two (coordination and economic satisfaction). Although financial success is linked to a degree of coordination, this is not the case for satisfaction in other areas of life. When looking to improve outcomes with its suppliers, management should prioritize collaboration, or the intangible social concerns of a relationship, above physical collaborative actions like coordination.