Abstract: “This study explores the cooperation between large enterprises and SMEs, competitive advantage, and business ecosystem health. The cooperative relationship between large enterprises and SMEs is characterized by their cooperative density and cooperative quality. Competitive advantage is composed of cost advantage and differentiation advantage by positioning and resources. To achieve the purpose of this research, data were collected from 101 vendor companies with S-electronics and analyzed with the theoretical study using the structural equation model. The results of this research areas follow. First, the cooperative density was determined to gauge its positive effect on the cost advantage, and the cooperative quality was revealed to assess its positive effect on the differentiation advantage. Second, the cost advantage was surfaced to evaluate its positive effect on the productivity, and the differentiation advantage was found to discover its positive effect on the robustness.”

Keywords: Intensity of cooperation, Quality of cooperation, Business ecosystem, Samsung Electronics