The relationship between initiation, barriers, product quality and internationalization (original) (raw)
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SMBs in search of international strategic alliances
Journal of Business Research, 2002
This study addresses the issue of how small-and medium-sized companies seek information about potential international partners for cooperation. In particular, we focus on two sources of information: direct personal information (DIRPI) and indirect personal information (INPI). We argue that the use of these sources is related to how closely related the planned alliance is to the strategic core of the company, the degree of dissimilarity among potential partners, the degree of expected opportunism from potential partners and prior experience with cooperation. Our hypotheses were tested on a sample of small-and medium-sized companies. The results indicate that the planned alliance's closeness to the strategic core of the company and partner dissimilarity are important predictors for how managers seek information about potential partners.
Newly established, technology-based firms entering international markets often have limited resources in terms of capabilities, time, and capital. As a consequence, these firms often use entry modes characterised by low resource commitment, including partnership agreements (strategic alliances). This paper, investigates which partner selection criteria that are important for this group of firms when they are selecting partners. Based on case studies of three Norwegian firms targeting the UK market, five selection criteria have been identified as important (trust, relatedness of business, access to networks, access to market knowledge, reputation), one has been identified as partly important (sharing of financial risk), and ten have been identified as having limited importance. Further, the paper discusses the implications of these results for managers of small firms entering international markets and presents recommendations for further research.
International Journal of Business and Management, 2009
Newly established, technology-based firms entering international markets often have limited resources in terms of capabilities, time, and capital. As a consequence, these firms often use entry modes characterised by low resource commitment, including partnership agreements (strategic alliances). This paper, investigates which partner selection criteria that are important for this group of firms when they are selecting partners. Based on case studies of three Norwegian firms targeting the UK market, five selection criteria have been identified as important (trust, relatedness of business, access to networks, access to market knowledge, reputation), one has been identified as partly important (sharing of financial risk), and ten have been identified as having limited importance. Further, the paper discusses the implications of these results for managers of small firms entering international markets and presents recommendations for further research.
International Journal of Business Innovation and Research, 2009
As international markets grow, many small-and medium-sized enterprises (SMEs) are finding lucrative opportunities to serve overseas consumers and source from overseas suppliers. The impact of information technology has made worldwide communication easier and more rapid. Some SMEs are literally 'born global', ready to do business on the internet. For many SMEs, this new commercial frontier offers both great promise and the challenge of determining: What are the key drivers of success in new and unknown international markets? This article focuses on this question from the perspective of strategic alliances in the global business environment. It develops a model to guide SMEs in managing overseas partners or allies that will 'fit' best with their company and their ambitions. The model provides SMEs with both strategic and tactical dimensions that are key international business arena. This article guides SMEs to 'get it right' when selecting allies in overseas markets.
Going Global : How Smaller Enterprises Benefit From Strategic Alliances
Journal of Business Strategy, 2012
Purpose: This paper focuses on understanding three dimensions of international alliance formation by SMEs: the role of internal actors, planning/opportunity management, and organizational learning. Design/methodology/approach: These three dimensions form a proposed model of international alliance formation which is examined using semi-structured interviews with 16 biotechnology SMEs from Montreal (Canada) and 12 from Boston (USA). Findings: Findings deepen our understanding of the firm's internal development of international alliance strategy. Results generally support different roles of organizational actors in international alliance formation, often a combination of planning and opportunity management, and signal rather weak administrative routines to ensure organizational learning from the alliance experience. Interestingly, alliance formation strategies vary across the two cities (countries). Age of the firm, development phase, human and financial resources, and competencies may explain these differences. Research limitations/implications: Limitations include single respondent in each firm, sample size, and single sector (biotechnology). Future longitudinal research could combine information from and about the implication of all actors and their networks during alliance formation and examine the process by alliance functions (R&D, production, marketing) and governance modes (equity, non-equity). Practical implications: Results suggest weaknesses and potential avenues to be explored by managers. Originality/value: To our knowledge, this is a first attempt to model the internal dimensions of alliance strategy formation for SMEs, integrating the role of actors, planning and opportunity, as well as learning. Multiple quotations provide a rich environment for understanding practice.
Functional and Contextual Dimensions of INVs' Alliance Partner Selection
Journal of International Entrepreneurship, 2016
Prior research on the selection of international alliance partners calls for investigation of the potential specificity of selection criteria for evaluating partners for alliances with different objectives or functions. The present study responds to this need and contributes to the development of the field of international entrepreneurship by examining the relation between the alliance function and the criteria chosen. We studied three alliance functions: R&D, production, and marketing. Second, for each alliance function, we analyzed the criteria selected within two contexts: developing countries and those that consider emerging markets in their partner choice set. Data were collected through semi-structured interviews with 25 executives from INVs in two major North American biotechnology clusters, representing 239 alliances. 65.7% of these were signed with international partners. Results indicate that, aside from compatibility/complementarity of resources (R&D and production alliances), all criteria used within a single function are unique to that function. Furthermore, these criteria differ somewhat when the potential partners considered by a firm include those from both emerging and developed markets, compared to firms that limit potential partners to those in developed markets contexts. Finally, the study reveals that respondent firms integrate country, industry, and market attractiveness factors with partner selection criteria for marketing alliances. This suggests that, for many firms, market choice and partner selection are not successive steps. The study's originality lies in its focus on the relationship between alliance function and partner selection criteria used by INVs as well as within different contexts.
The growing trend for companies to focus on geographical diversification implies a decisional process of how to face the opening of new markets and how best to make this entry. International Joint Ventures (IJV) are one of the major forms of market entry selected by companies for this internationalization process, connecting with a local partner and using his resources to achieve successful entry. The partner selection is a primary factor for achieving success in establishing a JV since the high degree of failure and termination of relationships between companies come from an inappropriate choice of partner with lack of a proper due diligence and potential relationship problems. Regarding the factors focused on the relationship with the partner: trust, commitment and congruent goals are the major points highlighted as important in creating an IJV and essential factors for the success of the relationship. This paper attempts to systematize the most relevant decisions concerning the international partner selection process.
An empirical investigation of the drivers of international strategic alliance formation
European Management Journal, 2003
Using data from a web-survey of Danish partner firms engaged in international strategic alliances, this study explores the factors that drive alliance formation between two specific firms across national borders. The relative importance of a set of partner selection criteria is identified and related to extant theory. By means of exploratory factor analysis, a more parsimonious set of selection criteria is provided and their relationships to a number of characteristics of the sample -prior international alliance experience, administrative governance form, nationality of foreign partner and motives for alliance formation analyzed. The findings indicate that partner choice is a function of strategic motivation and varies significantly with governance mode and partner nationality.
preview 1 Partner selection processes in international strategic alliances by small and medium sized businesses: UK fresh produce growers and their overseas partners Abstract This paper examines the search and selection processes used by small and medium sized enterprises (SMEs) who seek partners for international strategic alliances. Its focus is on how alliances are established and how a firm's social network structure can influence this process. In the search for success, one major element must be the initial choice of a suitable partner (shows that the quality and extensiveness of the evaluation of the partner prior to selection plays a role in success. Nevertheless, relatively little is still known about the way in which partners are actually selected. The purpose of this study is to attempt to fill this gap by an empirical study of international strategic alliances in the UK fresh produce sector.