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Companies need to play various roles as the network of supply chain gradually expands. Companies are required to form a supply chain with outsourcing or partnerships since a company can not perform all functions by itself. There are three types of partnership which are partnership between large firm and large firm, partnership between SME and SME, and partnership between large firm and SMEs. Partnership between large firm and SMEs is getting more important since the power between large firm and SMEs is not well balanced and thus large firm usually has more power than SMEs. This being the case, SMEs become subordinate to large firm and thus this supply chain becomes inefficient and decreases total profit of this supply chain. Each player of the supply chain should cooperatively pursue total profits of supply chain. If a player only pursues its own profit, total profits of the supply chain are actually shrinking. Playing as a team in a supply chain is the most important success factor for the profitable supply chain and thus each player should sacrifice itself for the sake of increasing overall profits of the supply chain. The purpose of this paper is to provide success factors for partnership between large firm and SMEs. We suggest that large firm and SMEs should closely cooperate in terms of five success factors derived in a supply chain consisting of large firm and SMEs. We examined four different cases which are Samsung Electronics Company and Huyndai Motor Company in manufacturing sector, and Hanaro Mart and SK Planet in service sector. We showed five success factors for successful partnership which are information sharing, technology sharing, performance sharing, investment sharing and strategy sharing. The first success factor, information sharing, is implemented in all companies. Information sharing is the fundamental factor for the successful cooperation between large firm and SMEs. As large firm tries to share its R&D and technology information with SMEs, the technical level of the entire supply chain is significantly improved. The efficiency of a supply chain is also improved as large firm shares real-time inventory information with SMEs. The second success factor is technology sharing. Large firm and SMEs in manufacturing industry * Researcher, IBRE(Institute of Business Research and Education). Korea University(First Author, tristan1031@korea.ac.kr). ** Professor, KUBS(Korea University Business School)(Corresponding Author, ktpark@korea.ac.kr).

can jointly develop the new technology and large firm can support SMEs in terms of finance or technology. The productivity of a supply chain is dramatically improved and a new product is successfully launched into the market by the second success factor. The third success factor, performance sharing, is sensitive issue to large firm and SMEs since it is really important issue to share revenue fairly between large firm and SMEs. SMEs usually have difficulties in preparing enough fund to operate and thus it is important for large firm to make payment to SMEs in advance since advance payment really helps SMEs to operate well. The fourth success factor is investment sharing. SMEs usually have difficulty in obtaining enough capital in spite of their excellent technologies. Large firm can help SMEs by offering loans with low interest rate or investing together with SMEs to enter into a new business. The last success factor is strategy sharing. Strategy sharing is an essential part for advancing toward the common target of a supply chain. Large firm and SMEs should understand the strategy of supply chain and establish an efficient network to realize this strategy by mutual understanding and communication. Key Words: Large Firm and SMEs, Supply Chain, Partnership, Cooperation, Case Study