Abstract
Purpose: The purpose of this paper is to understand how suppliers have managed to accumulate knowledge in their relationship with large multinational clients. Design/methodology/approach: The methodology was based on four case studies' qualitative data, collected from semi-structured, in-depth interviews. The buyers were selected among the largest MNEs of the electronics, automotive and footwear industries and the suppliers were selected among the set of SMEs supplying to those MNEs. The objective was to assess the supplier's knowledge transfer-oriented capabilities and the buyer's interaction-oriented capabilities in the SBR. Findings: The paper highlights the important leading role of the client in the buyer-supplier relationship involving SMEs as well as the knowledge-sharing atmosphere of successful cooperative relationships. Although it confirms the advantages of alliances for SMEs, knowledge transfer-oriented capabilities, are used by SMEs in order to sustain client satisfaction and to strengthen their core competencies. Despite all efforts of SMEs, if clients are not willing to use interaction-oriented capabilities, buyer-supplier relationships are doomed to failure. Research limitations/implications: One practical implication is that, if SMEs are adequately supported by public policies, it is possible to transfer knowledge from more advanced to less endowed economies. The main limitation stems from the fact that it is not possible to claim generalisation as the research is the result of a series of four case studies. Originality/value: The paper uses dyadic relationships as a viable option to compensate internal knowledge deficiencies of SMEs in their relationship with MNEs. It complements former research as little is known about the importance of alliances in the context of knowledge acquisition and learning in SMEs. It contributes to the SME scientific literature by investigating how SMEs learn from their alliance partners. © Emerald Group Publishing Limited.

Abstract
Purpose: The purpose of this paper is to present a methodology for incubating business ideas in rural communities in Portugal. The work provides an example of a bottom-up approach to rural entrepreneurship. Design/methodology/approach: The paper analyses case study of an entrepreneurial support organisation conceived and used in rural European regions and aiming at local development through entrepreneurial boost. Findings: Although the methodology for incubating business ideas was adapted from a similar situation in France, its originality comes from the description of how the awareness of local specificities requires a calibration of the framework. Research limitations/implications: The case study is the outcome of a pioneering study of incubation of business ideas in rural areas. Further research needs to be taken in order to claim generalisability of these findings to other less favoured target groups. Practical implications: The incubation of business ideas can be used to encourage local development in declining rural regions. It is important to calibrate the framework used to the local/regional reality. Originality/value: Apart from being innovative in providing a supportive entrepreneurial infrastructure with mentoring people-based support in the creation of new firms in rural areas, it is also a nation-wide entrepreneurial service innovation. © Emerald Group Publishing Limited.

Abstract
Purpose - The main purpose of the paper is to provide an example of a bottom-up approach to entrepreneurial policy and its mismatch with the top-down approach SMEs policy. Design/methodology/approach - The paper analyses a case study of an entrepreneurial support organisation that addresses local development in rural areas. Findings - The paper highlights the important role of innovation in rural areas and the need to close the gap between entrepreneurial policy and SMEs policy. Research limitations/implications - The main limitation stems from the fact that it is the outcome of a single case study. One practical implication is that the incubation of business ideas poses a challenge when there is a mismatch between entrepreneurial policy and SMEs policy.

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Abstract
A bilevel facility location problem in which the clients choose suppliers based on their own preferences is studied. It is shown that the coopertative and anticooperative statements can be reduced to a particular case in which every client has a linear preference order on the set of facilities to be opened. For this case, various reductions of the bilevel problem to integer linear programs are considered. A new statement of the problem is proposed that is based on a family of valid inequalities that are related to the problem on a pair of matrices and the set packing problem. It is shown that this formulation is stronger than the other known formulations from the viewpoint of the linear relaxation and the integrality gap. © 2009 Pleiades Publishing, Ltd.