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International Market Expansion Strategies for High-Tech Firms: Examining the Importance of Different Partner Selection Criteria when Forming Strategic Alliances

Abstract

Newly established, technology-based firms entering international markets often have limited resources in terms of capabilities, time, and capital. As a consequence, these firms often use entry modes characterised by low resource commitment, including partnership agreements (strategic alliances). This paper, investigates which partner selection criteria that are important for this group of firms when they are selecting partners. Based on case studies of three Norwegian firms targeting the UK market, five selection criteria have been identified as important (trust, relatedness of business, access to networks, access to market knowledge, reputation), one has been identified as partly important (sharing of financial risk), and ten have been identified as having limited importance. Further, the paper discusses the implications of these results for managers of small firms entering international markets and presents recommendations for further research.

Category

Academic article

Client

  • Research Council of Norway (RCN) / 188946

Language

English

Author(s)

Affiliation

  • Norwegian University of Science and Technology
  • SINTEF
  • Telenor

Year

2010

Published in

International Journal of Business and Management

ISSN

1833-3850

Volume

5

Issue

1

Page(s)

20 - 30

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