This thesis examines perceptions of cooperation among small to medium sized enterprises (SME) in western Oregon's forest products industry. Recent changes in the industry, such as corporate consolidation, global marketing, and government regulations have created an environment in which many SMEs find it difficult to stay competitive. Cooperation among SMEs is one method for alleviating the situation; however, few SME owners are engaging in cooperative projects or behaviors. Common assumptions and stereotypes about the individualistic nature of the forest products industry lead some to believe that cooperation is an unlikely avenue for SME owners. Through 16 in-depth interviews with SME owners, this view is found to be overly simplistic. It does not account for the variety of factors at play and the depth of the issues involved in SME owners' attitudes toward cooperation. In studying attitudes toward cooperation, this study first attempts to understand the cultural values of the decision makers. It is apparent that values play an integral role in the decision making and strategy of SME owners. This research highlights the complexity of the issues facing small businesses and their owners and reveals that four main factors contribute to SME owners' perceptions about cooperation and influence strategic business decisions: common values, stereotypes, risk perception, and a lack of knowledge about cooperation. Values are found to be especially relevant in understanding and influencing attitudes toward cooperation as values affect risk perception and risk perception in turn directly impacts business strategy. Understanding the values of SME owners helps to describe their attitudes toward cooperation and dispels the notion that they are too independent to ever work together. Eight recommendations stem from the findings of this study which may lead to cooperative action and more successful SMEs: 1) Find a trustworthy agent to act as a sponsor; 2) Build credible systems; 3) Match members with similar values; 4) Expound the potential benefits of cooperation to reduce risk perception; 5) Find a spark plug, not a spokesperson; 6) Provide education; 7) Define and implement both learning networks and action groups; 8) Target new and future categories of SME owners such as women and the children or grandchildren of current owners. / Graduation date: 2004