The role of cooperative alliances in internationalization strategy

Abstract

Purpose From the network approach, the purpose of this paper is to provide empirical evidence about the role of international cooperative alliances (CAs) in the decision of small- and medium-sized enterprises (SMEs) to internationalize and remain in the external market. Design/methodology/approach To fulfill the proposed objective, qualitative research was carried out through analyzing two SMEs (case studies) in the Portuguese textile sector. Data collection was based on structured interviews, direct observation and some documental analysis. Findings The results show that the analyzed SMEs internationalized immediately after their creation, with this decision not being influenced by CAs but rather by the founder’s role and above all by a saturated domestic market. Practical implications Alliances are determinant in subsequent developments in the foreign market, allowing SMEs to reach new markets, increase their market share and consolidate their name in the international market. Thus, managers/entrepreneurs should adopt strategies that stimulate the firm’s expansion in the external market, prioritizing the formation of CAs with international partners. Originality/value This study suggests that none of the dominant models can exclusively explain the internationalization process of the studied SMEs. Therefore, this research has implications for the recent stream of literature that argues for a holistic view of internationalization models, considering the arguments of all models instead of only one.

Role of formal and informal networks in the relationship between government support and Ghanaian indigenous firms’ degree of internationalisation

“…Thus, a highly built network relationship aids exporting entrepreneurs in gaining access to differentiated knowledge and distinctive resources which significantly increase market opportunities and competitive advantage and positively accelerate the pace, scope and degree of internationalisation (Barcelos et al , 2022; Santhosh, 2020). In the same vein, formal networking with an international agent and membership association is a source of information to enhance the international experience and competitiveness, to boost international activities (Boscor, 2015; Morais and Franco, 2018).…”

“…Moreover, it is acknowledged that social ties with members of the same ethnic group or national origins in the foreign country increase export activities (Santhosh, 2020). Firms assess their specific weaknesses and strengths and adopt a networking strategy, including formal and informal networking with families, friends, government executives, customers, suppliers, international agents or business partners which complement each other (Zain and Ng, 2006; Morais and Franco, 2018). Drawing from network theory (Casson, 1997; Casson, 2010), this study assessed the potential mediating roles of both formal and informal networks in the relationship between government support and the degree of internationalisation by indigenous Ghanaian firms.…”

Employee Retention in Small and Medium Enterprises Export Potential

“…However, this study also found that the networking program initiated by the government failed in its implementation. The research of Morais & Franco (2018) found that most of the internationalization processes in Portugal were initiated by MSMEs themselves and not by the existence of networks.…”