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

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

Category
Journal publication
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.
Client
  • Norges forskningsråd / 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
Publisher
Canadian Center of Science and Education
Volume
5
Issue
1
Page(s)
20 - 30