This study analyze the effects of cooperative activities between SME’s(Small and Medium Company’s). To research the empirical analysis, we divide type of cooperation into four dimensions such as technical cooperation, human resource cooperation, sales cooperation and finance cooperation. We examine the role of cooperation philosophy as precedence factor. In addition, this study analyze the relationship between cooperation philosophy, cooperation activities and performance. The finding of this study can be summarized as follows, First, the result of path analysis between cooperation philosophy and cooperation activities is that cooperation philosophy have significant effect on technical cooperation, human resource cooperation, sales cooperation and finance cooperation. Second, the result of relationship between cooperation activities and performance, technical cooperation, human resource cooperation, sales cooperation have significant effects on cooperation performance. In particular, the effect of haman resource cooperation is relatively high because cooperation through personnel exchanges is effective in the short-term performance. In addition, the implications of this study are presented as follows, First, this study analyze the empirical test by using PSBP Model in terms of partnership. Until now, many researcher analyze the relationship between big and small company, but we try to verify the relationship between small business company. So, we can present a beneficial implications to explain importance of cooperation activities between SME’s. Second, there is the problem of technical information disclosure issue when SME’s business unit have a partnership. To overcome this problem, we use cooperation philosophy and it can be escape the negative views.