Strategic partnerships and the internationalisation process of software SMEs

Abstract

This research investigates the strategic partnering activities of software SMEs (small to medium sized enterprises), their motivations to engage in strategic partnerships as part of the internationalisation process, the key benefits achieved and the main challenges encountered. A qualitative research methodology focusing on Irish indigenous firms is used. Findings suggest that strategic partnerships were initiated to take advantage of firm synergy, reputation and credibility advantages. Partnerships also served as an important foreign market entry mechanism allowing firms to accelerate sales cycles and reduce risk in overseas markets. Challenges facing firms included partner selection and issues of control. Directions for further research are highlighted.

Global Business Networks and Cooperation within Supply Chain as a Strategy of High-Tech Companies’ Growth

“…company's internationalisation. Research (Kennedy and Keeney, 2006;Schwens and Kabst, 2006) confirms that in the case of high-tech companies cooperation is an important mechanism of entering foreign market, which enables them to accelerate the sales cycles and reduce the risk. Moreover, it should be noticed that the processes of competitive strategy internationalisation as well as the new sources of its competitiveness occur alongside the process of extending company's operation to new markets.…”

The Role of Strategic Partnerships in the Internationalisation of Small Born Global Firms

“…Furthermore, the formation of strategic partnerships enhances the credibility and brand recognition of small born global firms in international markets (Kennedy & Kenney, 2009). As firms become validated through the partnerships, it consequently helps them to address new customers who already maintain business relationships with their partner.…”

“…Born global firms can therefore highly profit from these partnerships, as their international experience might be relatively low and the founder or manager might not possess own contacts in the foreign markets (Cavusgil & Knight, 2009, Franco & Haase, 2016. Moreover, small firms can gain knowledge and skills form their strategic partner which enables a smaller firm to increase its corporate strength, visibility and credibility (Kennedy & Kenney, 2009). In general, Moen et al (2010) conclude that small firms tend to use strategic partnerships as an international entry mode because they strive for an entry mode which is described by relatively low resource commitment and direct commercialisation (Comi & Eppler, 2009;Moen et al, 2010).…”

“…Kennedy and Kenney (2009) argue that in addition to the resource potential, born global firms could receive an indirect value from their international strategic partnerships, which are corporate strength, visibility and credibility. These indirect benefits for a small born global firm have been observed as important motives for their engagement in a strategic partnership in order to foster their early internationalisation.…”

Limited growth opportunities amidst opportunities for growth: an empirical study of the inter-firm linkages of small software firms in India

“…For small export-oriented firms, the linkage with other firms is indispensable in nurturing or exploiting opportunities (Coviello and Munro 1997;Kennedy and Keeney 2009;McNaughton 2002;Yli-Renko and Tontti 2002). The literature on the internationalization of firms highlights the role played by multinational corporations (MNCs) in providing global access to small firms (Bell 1995;Prashantham and McNaughton 2006).…”