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.

References

Alston, D. W. (1994). U.S. entrepreneurs head south: A real estate broker goes crabbing. Mexican Business Review, 2 ( l ), 9-12.

Broehl, W. G., Jr. (1982). Entrepreneurship in the less developed world. In W. G. Broehl (Ed.), Entrepreneurship and progress. (pp. 257-271), NJ: Prentice-Hall, Inc.

Cavusgil, S. T., & Nevin, J. R. ( 1980). A conceptualization of the initial involvement international marketing. In C.W. Lamb and P.M. Dunne (Eds.), Theoretical developments in rnarketing (pp. 68-76). Chicago, I L; American Marketing Association.

Contractor, F. J., & Lorange, P. (1988). Why should firms cooperate: The strategy and economics basis for cooperative ventures. In F. J. Contractor & P. Lorange (Eds.), Cooperative strategies in international business (pp. 3-30). Lexington, MA: Lexington Books.

Cullen, J. B., Johnson J. L., & Sakano, T. (2000). Success through comm itment and trust: The soft side of strategic alliance management. Journal of World Business, 35(3), 223-240.

Harrigan, K. (1988). Strategic alliances and partner symmetries. Management International Review, 28 (Special Issue). 53-72.

Hills, G. E., & Laforge, R. W. (1992). Marketing and entrepreneurship: The state of the art. In D. Sexton & J. Kasarda (Eds.), The state of the art of entrepreneursh ip (pp. 164- 190). Boston, MA: PWS-Kent Pu blishing.

Hisrich, R. D. & Peters, M. P. (1995). Entrepreneurship: Starting, developing, and managing a new enterprise. Chicago, IL: Irwin.

Hoy, F., & Hoy, M. E. (1994). Double your trouble through international franchising: Arby's goes to Mexico. In W. D. Bygrave, S. Birley, N. C. Churchill, E. Gatewood, F. Hoy, R.

H. Keeley, & W. E. Wetzel, Jr. (Eds.), Frontiers of Entrepreneurship Research (pp. 587-600). Wellesley, MA: Babson College.

Johanson, J., & Vahlne, J. E. (1990). The mechan ism of internationalization. International Marketing Review, 7(4), 11-24.

Johansson, J. K., & Roehl, T. W. (1994). How companies develop assets and capabilities: Japan as a leading market. In A. Bird (Ed.), The future of Japan's business (pp. 139- 160). Greenwich, CT: JAi Press.

Jones, S. H., & Anderton, G. ( 1995). Shaping strategic alliances in Mexico. Bobbin, 36 (5), 70-76.

Larson, A. (1992). Network dyads in entrepreneurial settings: A study of the governance of exchange relationships. Administrative Science Quarterly, 37 ( l ), 76-104.

Leibenstein, H. ( 1 973). Com petition and X-rated efficiency: Reply. Journal of Pol itical Economy, 81.

Lorange, P., & Roos, J. (1992). Strategic alliances: Formation, implementation, and evolution. Oxford: Blackwell.

Lynch, P. ( 1 989). The practical guide to joint ventures and strategic alliances. New York, NY: Wiley Press.

McDougall, P. P., & Oviatt, B. M. (1997). I nternational entrepreneurship literature in the 1990s and d irections for future research. In D. L. Sexton & R. W. Sm ilor (Eds.), Entrepreneurship 2000 (pp. 291 -320). Chicago, I L: Upstart Publ ishing Com pany.

McGee, J. E., Dowl ing, M. J., & Megginson, W. L. ( 1995). Cooperative strategy and new venture performance: The role of business strategy and management experience. Strategic Management Journal,16(7), 565-580.

Norris, K. (1993). Venturing into Mexico. Today's CPA, (November/December), 27-29.

O'Driscoll, J r., G. P., Gruben, W. C., & Welch, J. H. (1993). NAFTA: Capstone and cornerstone. The Southwest Economy, The Federal Reserve Bank of Dallas, (September/October), 1-4.

Ohmae, K. (1989). The global logic of strategic alliances. Harvard Business Review, 67(2), 143-154.

Ohmae, K. (1995). Putting global logic first. Harvard Business Review, 73(1), 1 19-1 25.

Root, F. R. ( 1987). Entry strategies for international markets - Revised and expanded. New York, NY: D.C. Heath.

Slevin, D.P. ( 1971). The innovation boundary: A specific model and empirical results. Administrative Science Quarterly, 1 6(4), 515-531.

Stevenson, H. H., Roberts, M. J., & Grousbeck, H. I. (1989). New business ventures and the entrepreneur. Boston, MA: Irwin.

Tsang, E. W. K. (1999). A prelim inary typology of learning in international strategic alliances. Journal of World Business, 34(3), 21 1-229.

Ulrich, D., Von Gl inow, M. A. & J ick, T. (1993). High-impact learning: Bu ilding and diffusing learning capability. Organizat ional Dynam ics, Autumn, 52-66.

Weaver, K. M., & Dickson, P. H. ( 1995, August). Towards a unified model of SME-based strategic al liances: Transaction costs. resource dependencies, and social controls. Paper presented at the Academy of Management Annual Conference, Vancouver, British Columbia.

Weaver, K. M., Dickson, P. H., & Davies, L. (1995, June). SME based interfirm cooperation: An empirical investigation of partner behaviors and outcome satisfaction. Paper presented at the 41" ICSB World Conference, Stockholm, Sweden.

Winsor, A. (1994). The complete guide to doing business in Mexico. New York, NY: Amacom, the American Management Association.

Yin, R. K. ( 1989). Case study research: Design and methods. Newbury Park, CA: Sage Publications.

Downloads

Published

2000-06-18

Issue

Section

Articles

How to Cite

International Strategic Alliances: A Tale of Two Firms. (2000). Journal of Small Business Strategy (archive Only), 11(2), 77-91. https://libjournals.mtsu.edu/index.php/jsbs/article/view/453