The internationalization and performance of SMEs

China: A New Model for Growth and Development

“…There is also evidence that entry into foreign markets, regardless of how this happens, could significantly promote, improve and increase the development, performance and profitabilty of firms, thus contributing to domestic wealth (Daniels and Bracker 1989). Besides, ODI compared with exports is found to generate the highest profit level and maximise control of critical knowledge (Lu and Beamish 2001;Tang and Yu 1990).…”

Strategic partnerships and the internationalisation process of software SMEs

“…Strategic partnering may be initiated with well-known and established firms (Kauffman, 1995), domestic firms or suitably knowledgeable local firms in overseas markets (Lu & Beamish, 2001). Various forms of strategic partnering exist, for example García-Canal et al, (2002) identify three forms of strategic partnering activities and cooperative internationalisation strategies; one key global alliance, multiple global alliances and competence-building alliances.…”

“…Tension between knowledge protection and knowledge sharing may be of concern between parties, particularly if the relationship is reliant on active information sharing and learning (Jordan, 2004). Finding appropriate and suitable strategic partners also poses a challenge to internationalising firms (Karagozoglu & Lindell, 1998;García-Canal et al, 2002) in the form of goal conflicts between parties, disagreement regarding control divisions and cultural incongruity (Frankel et al, 1996;Elmuti & Kathawala, 2001;Lu & Beamish, 2001). …”

“…Forming a strategic partnership with another firm already present in a foreign marketplace is seen as an appealing alternative to seeking entry alone (Elmuti & Kathawala, 2001) providing entry doorways into successive foreign countries or firms and also diminishing the possibility of firms making mistakes in unfamiliar foreign markets (Lu & Beamish, 2001). Therefore, strategic partnering means that smaller firms are empowered to carry out larger projects with less financial commitment, as the financial burden of seeking new overseas markets may be too great for an individual firm to bear alone (Elmuti & Kathawala, 2001).…”

“…These forms of partnerships serve to enhance firm credibility, provide entry mechanisms into foreign markets and provide vital local market knowledge (Inkpen & Beamish, 1997). Moen et al, (2004) maintain that strategic partnering activities are an important mechanism for increasing firm competencies and resource base, as strategic partnering facilitates firms to overcome these resource constraints by sharing intangible assets (Lee et al, 2000;Lu & Beamish, 2001). The findings support these points, as most respondent firms sought to engage in active information sharing and joint marketing activities, involved strategic partners in market entry and used them as mechanisms to enhance reputation; which brought increased confidence and further overseas market credibility.…”