These relate to Pyke's identification of advantages of co-operation between SMEs. In the context of business support probably the most obvious is the ability to offer a broader scope of capabilities and more rational and efficient distribution of activities. Also of relevance is the power co - operation brings to business service providers to influence the nature of service provision at the local level Many providers argue that they have little input into the process at a local level despite having the experience of dealing with companies on a day to day basis. Through co - operation they can redress the imbalance in power between local agencies and service providers enabling a more business focused approach. The key characteristics of the Third Wave company are flexibility and co- operation.
Complicated consumers demand custom goods which is reflected in the production process.
This malignant aspect to the mode of production is the force majeure of Post - Fordism. The rapid development of information technology and it's diffusion across societies appears to continue the trend of demanding individualised consumers. This aspect suggests that the need for co - operation amongst SMEs and thus clusters is a strategic response to changes in the global political economy. Interpreting future developments amongst large firms the term often employed is the vertical corporation. The vertical corporation at it's most advanced is a structure which as it's name implies has an existence devoid of physical presence.