Backward Linkages
Backward linkages connect firms by channeling their money, information, and materials together.
Why shouldn’t nonprofits that work with similar clients share information and resources? Even profit-seeking businesses do that. Businesses form trade unions and professional associations. They study each other’s movements to spot trends. They recruit the same sort of people, so they watch where fresh workers come from. They have mutual interests and studies have shown that industries thrive when the businesses work together to increase the pie for them all. That way, they are free to specialize and develop distinct identities.
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