SMEs internationalization through alliances

What is it about?

This paper focuses on understanding three dimensions of international alliance formation by SMEs: the role of internal actors, planning/opportunity management, and organizational learning. 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 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. Results suggest weaknesses and potential avenues to be explored by managers.

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Why is it important?

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.