Independence and co‐operation among small businesses

Purpose The article seeks to explore the importance of entrepreneurial behaviour and inter‐firm co‐operation for small firms seeking growth in a volatile, recession‐hit environment. Entrepreneurial behaviour is defined as seeking opportunities, developing new products and entering new markets. Strategic thinking and strategy type determine behaviour. Inter‐firm co‐operation includes both horizontal and vertical relationships. Design/methodology/approach A case study of co‐operating firms and questionnaire survey of independent firms were conducted in the Turkish shotgun industry. Findings Small firms engaging in co‐operation and applying prospector/analyser‐type strategies achieve greater success and growth than independent firms in the same industry. Moreover, co‐operation includes socio‐psychological, strategic and network dimensions, which are essential factors for success and growth. Research limitations/implications Since the sample comprised only one case and a small number of independent firms, generalization is difficult. Moreover, the results may not apply to other industries. Practical implications Relevant government agencies and other researchers should consider co‐operation and/or clusters to mitigate the impact of economic recession and sustain employment levels. Originality/value Although the Huglu case is unique in Turkey, clusters and co‐operations can enhance firm performance, job creation and general social welfare.