“…Specifically, our results highlight the potential of cooperative agreements to avoid reprisals from firms established in concentrated sectors or to overcome entry barriers related to product differentiation. Our findings also reveal that cooperative agreements are a valid option not only for small and medium-sized firms, as already highlighted by many studies (Contractor & Kundu, 1998;Mutinelli & Piscitello, 1998;Stopford & Wells, 1972;Tsang, 1998;Wu & Cavusgil, 2006), but also for large firms implementing a diversification strategy. Through alliances, smaller firms may gain access to the resources they need to achieve higher firm-specific rents outside the alliance.…”