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.
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.Keywords: partner selection, alliance, emerging markets, developed countries, biotechnology, selection criteria, alliance function French AbstractDes études précédentes portant sur la sélection des partenaires pour des alliances internationales soulèvent le besoin d'examiner la spécificité des critères de sélection dans l'évaluation des partenaires pour des fonctions différentes. Cet article répond à ce besoin et contribue au développement du domaine de l'entrepreneuriat international en analysant la relation entre l'objectif et les critères choisis pour trois types d'alliances : recherche et développement, production et marketing. Pour chaque fonction, les critères sont aussi analysés dans deux contextes : les entreprises qui limitent leurs partenaires à des pays développés et celles qui considèrent les pays en émergence. Des entrevues semi-structurées ont été réalisées auprès de 25 dirigeants de nouvelles entreprises internationales en biotechnologie de Montréal et de Boston, totalisant 239 alliances, dont 157 internationales. Les résultats indiquent que, mis à part la complémentarité et la compatibilité, tous les critères utilisés à l'intérieur d'une fonction lui sont spécifiques. Les critères peuvent diverger lorsque les partenaires potentiels proviennent de marchés émergents en plus de...
For high technology firms that depend on foreign markets from the outset, identifying opportunities is a matter not only of business development but of survival. This study contributes to the opportunity recognition literature by exploring the paths taken by these international entrepreneurs to find opportunities in foreign markets. Moreover, it examines the paths of firms at different lifecycle stages. Based on indepth interviews with 5 start-ups and 5 growth firms in Canada specialized in photonics, this research delves into both the personal characteristics of the entrepreneurial teams and the methods they use to find international opportunities. The sources they use as well as the actions undertaken are examined and compared. The practical goal is to identify path components which may be adjusted in start-up firms to improve the probability of finding and developing fruitful opportunities.
International new ventures (INVs) -those that from the inception seek to use their ressources and to sell their output in international markets -have been the subject of much research for more than a decade. However, research on INVs has so far ignored the importance of communication strategies directed toward foreign stakeholders during the internationalization of these young firms. In addition, INVs may utilize different and at times progressively more complex entry modes into foreign markets (for example, exporting, licensing, direct investment).An important concern is then the necessity to develop and implement appropriate communication strategies towards foreign stakeholders as the firm evolves in terms of its international activities.This study examines communication strategies of INVs in foreign markets when pursuing different entry modes. A communications model is used to develop propositions and these are explored based on interviews with 22 executives in high-tech companies. Insights for managerial practice and for future research are provided. Results suggest that INVs do communicate with different publics as they internationalize; however, they are not taking full advantage of a carefully planned communications strategy or of all the communications tools available. Key wordsInternational New Ventures, modes of entry, communication. This study takes the first step in exploring this process by examining the role of international corporate communications, or "marketing the firm" to international stakeholders (sometimes referred to as public communications or public relations) as opposed to marketing products and services to foreign customers through advertising and promotion). Specifically, this study addresses two research questions: first, whether INVs use different communication strategies when they approach foreign markets in different ways (i.e., using different entry modes); second, whether their communications becomes more formalized as they engage in more complex entry modes.After a brief presentation of INVs and their specific needs for communication during the internationalization process, communications strategy and related propositions will be presented.And since internationalization strategies and practices may differ by industry, these propositions will be investigated and discussed from the viewpoint of high-tech INVs (an industry frequently used in INV studies). Analysis and results are then presented and discussed. Managerial implications are suggested for INV managers. LITERATURE REVIEW International New Ventures (INVs)In the late 1980s, McDougall (1989) Communication and INVsNew ventures cannot rely, as established firms do, on corporate image, brand recognition, or financial track record when attempting to acquire resources from stakeholders for start-up and There is a paucity of models in the communication literature which could be used to evaluate communication strategies and practices of INVs and the overall quality of communication strategy. However, Belch, Belch and Gu...
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.