Management by association: Interpreting small firm‐associate links in the business services sector

A key characteristic of small business service firms is their capacity to draw on similar businesses or self‐employed professionals in order to compete with large organisations. This paper presents a qualitative account of the ways in which three small firms from the business services sector managed the critical relationship with associates. The rationale, recruitment and management of associates is explored. It is argued that “matching” approaches that suggest an easy alignment between the firms’ competitive strategy and use of associates fail to appreciate tensions inherent in the relationship. Rather, relations between such enterprises and associates have to be managed in a manner that recognises the particular expectations of the parties, the dynamics of “in‐house” work relations, and the often conflicting pressures occasioned by having to operate in a dynamic and unpredictable market environment.