International Strategic Alliances: A Tale of Two Firms

Authors

  • John Hadjimarcou University of Texas at El Paso
  • John W. Barnes Loyola University - New Orleans
  • Somnath Bhattacharya Florida Atlantic University
  • Patrick Traichal Epicentric, Inc.
  • Frank Hoy University of Texas at El Paso

Abstract

Firms seeking to enter international markets have increasingly opted for cooperative relationships with business partners as a mode of easing and promoting market entry. This study examines the expansion of two small/medium-sized enterprises (SMEs), organizations with· 30 to 500 employees, in the U.S. and in Mexico. The study compares and contrasts the nearly simultaneous expansion of a U.S.-based franchisor into Mexico and that of a Mexican firm into the U.S. In addition to its implications regarding strategic alliance as an international entry mode for SMEs, this study also contributes toward the quest for longitudinal theory building. Given that this was the first international expansion for both principal entities, a major outcome of the study is documentation of the importance of both partnership and planning for successful international activities.

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Published

2000-06-18

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