Dancing with Gorillas: How Small Companies Can Partner Effectively with MNCs

Foreign competition, domestic competition and innovation in Chinese private high-tech new ventures

“…More in-depth qualitative studies of the process by which private firms interact with foreign entrants and respond to their competitive threats are clearly needed in order to explore the behaviour foundation and implications of such a relationship. Additionally, a few scholars have examined how SMEs in emerging markets, such as India, learnt from large multinational firms, and the process was vividly described as 'learning to dance with gorillas' or 'swimming with sharks' (Prashantham & Birkinshaw, 2008;Prashantham & Dhanaraj, 2015). However, foreign competition may also emanate from smaller foreign companies.…”

Proximity and multinational enterprise co-location in clusters: a multiple case study of Dutch science parks

“…This suggests that the influence of organisational proximity on MNE co-location in science parks is affected by the degree of competition with potential partners, and that MNEs view smaller firms and knowledge institutes as a better choice for positive knowledge flows (Cantwell and Santangelo 2002;Mariotti, Piscitello, and Elia 2010). MNEs co-locate in all three science parks to pursue relationships with small domestic firms (startups and/or spin-offs), as they are perceived to have a disruptive, energetic and quicker way of thinking/working than MNEs are able to achieve (Prashantham and Birkinshaw 2008). MNEs seek access to these competences to be able to respond more effectively to new developments.…”

“…MNEs seek access to these competences to be able to respond more effectively to new developments. Reciprocally, partnerships with MNEs (or local MNE subsidiaries) are an effective way for small firms to globalise successfully (Prashantham and Birkinshaw 2008). Significantly, low (structural) organisational proximity seems to drive collaborations rather than prevent successful knowledge-based collaboration, thereby promoting co-location, see Figure 1.…”

Capital Structure of Foreign Affiliates and the Investment Decision: Two Questions to Consider

“…for the investing firm, given that -as different papers remark -the ownership structure affects firms' performance (Chang et al 2013;Rasheed 2005;Brouthers et al 2003;Siripaisalpipat, Hoshino 2000), business opportunities for local firms (Prashantham, Birkinshaw 2008;Akande et al 2010;Miozzo et al 2012), the rest of the financial structure (Schindler, Schjelderup 2012), the knowledge of the local foreign market (Park et al 2012), and even the probability of failure of the project (Hennart, Zeng 2002). Therefore, it is not surprising that normative consequences may emerge from this research topic in order to know ex-ante the optimal mode of entry.…”