MNE–SME cooperation: An integrative framework

Published on Feb 7, 2019in Journal of International Business Studies
· DOI :10.1057/S41267-019-00214-Y
Shameen Prashantham18
Estimated H-index: 18
(China Europe International Business School),
Julian Birkinshaw52
Estimated H-index: 52
(LBS: London Business School)
Although international business scholars have begun to recognize the division of entrepreneurial labor between MNEs and SMEs, there is a fragmented understanding of the different forms MNE–SME cooperation can take. We develop a typology that takes into account not only complementarity of capabilities but also, crucially, the compatibility of intent between MNEs (exploration vs. exploitation) and SMEs (international vs. domestic orientation). The framework offers a novel way to understand the forms and dynamics of MNE–SME cooperation. We also show how it can be applied more broadly, by considering its application to societal challenges, such as achieving the United Nations’ Sustainable Development Goals.
Figures & Tables
  • References (73)
  • Citations (4)
📖 Papers frequently viewed together
3 Authors (Tiina Ritvala, ..., Asta Salmi)
2 Citations
427 Citations
78% of Scinapse members use related papers. After signing in, all features are FREE.
#1Roger Strange (University of Sussex)H-Index: 22
#2John Humphrey (University of Sussex)H-Index: 33
In this paper, we suggest that internalization theory might be extended by incorporating complementary insights from GVC theory. More specifically, we argue that internalization theory can explain why lead firms might wish to externalize selected activities, but that it is largely silent on the mechanisms by which those lead firms might exercise control over the resultant externalized relationships with their GVC partners. We advance an explanation linking the choice of control mechanism to two ...
14 CitationsSource
We develop an integrative perspective on the role of coethnic ties and ties with foreign multinational enterprises (MNEs) – normally studied in isolation of each other – on the perceived legitimacy of international new ventures (INVs) from emerging economies. Building on the notions of people (interpersonal diaspora ties) and pipelines (interorganizational MNE ties) in Lorenzen and Mudambi's connectivity theory of clusters, we argue that these could contribute to the focal INV's internal and ext...
2 CitationsSource
#1Rajneesh Narula (University of Reading)H-Index: 40
#2André Pineli (University of Reading)H-Index: 2
We summarize the key empirical evidence on the nexus between MNEs and development, focusing on issues that are relevant for the formulation, implementation and assessment of policies by host developing countries. We also delve into what we do not know, as well as topics for which the evidence is still quite blurred. We discuss the reasons for the absence of clear evidence, and potential avenues for future research to improve policies. Although most countries rely on MNEs/FDI as a central plank o...
3 CitationsSource
#1Liena Kano (U of C: University of Calgary)H-Index: 11
#2Alain Verbeke (Vrije Universiteit Brussel)H-Index: 48
6 CitationsSource
THE CAPITALIST SYSTEM is under siege. In recent years business increasingly has been viewed as a major cause of social, environmental, and economic problems. Companies are widely perceived to be prospering at the expense of the broader community.
2,465 CitationsSource
#1Liena Kano (U of C: University of Calgary)H-Index: 11
Abstract Global value chain (GVC) governance is an established field within international business research, yet the relational aspects of GVCs have, to date, garnered less scholarly attention than have efficiency considerations. This conceptual study’s objective is to explore the relational dynamics of GVC governance using an internalization theory perspective, and by linking GVC research with insights from the business network literature. GVCs are argued to be a distinct form of asymmetrical n...
45 CitationsSource
#1Jan Anton van Zanten (EUR: Erasmus University Rotterdam)H-Index: 1
#2Rob van Tulder (EUR: Erasmus University Rotterdam)H-Index: 19
The Sustainable Development Goals (SDGs) cannot be achieved without the contributions of multinational enterprises (MNEs). However, extant international business research hardly covers the private sector’s role in achieving international policy goals. This article conceptualises the SDGs as a goal-based institution. Building on institutional theory, it develops propositions that help explain MNEs’ engagement with SDGs. Exploratory survey results from 81 European and North American Financial Time...
15 CitationsSource
#1Alain Verbeke (U of C: University of Calgary)H-Index: 48
#2Luciano Ciravegna ('KCL': King's College London)H-Index: 13
International entrepreneurship (IE) research draws from work in both international business (IB) and general entrepreneurship. It examines, inter alia, entrepreneurial behaviour when crossing borders (first stream), and makes international comparisons of entrepreneurship as found in different countries and regions (second stream), see Wright and Ricks (1994). 1 Two influential IE articles have been bestowed with the JIBS Decade Award, namely Oviatt and McDougall (1994) and Knight and Cavusgil (2...
11 CitationsSource
#1A. Rebecca Reuber (U of T: University of Toronto)H-Index: 21
#2Gary A. Knight (SPbU: Saint Petersburg State University)H-Index: 29
Last. Lianxi Zhou (Brock University)H-Index: 24
view all 4 authors...
In this editorial for the Special Issue on International Entrepreneurship, we inter-relate key concepts about the pursuit of opportunities from the entrepreneurship and international business literatures. In doing so, we consider the assessment of opportunities as an individual-level cognitive activity, the construction of opportunity as a firm-level innovative activity and the shaping of opportunity as an institutional-level structuring activity. We then extend the discussion to explore the not...
20 CitationsSource
#1Sarianna M. Lundan (University of Bremen)H-Index: 15
For more than 60 years, scholars in the international business field have studied the distribution of value-adding activity across national borders, and attempted to explain where, how and by whom international production is organized. It is their deep knowledge of the different kinds of multinational enterprises (MNEs) and of the myriad ways in which these firms interact with the local environment that allows international business scholars to make a unique contribution to public policy debates...
11 CitationsSource
Cited By4
#1Shameen Prashantham (China Europe International Business School)H-Index: 18
#2Sumelika Bhattacharyya (University of Navarra)H-Index: 1
Using survey data from China and India, we explore the impact of network strategy of new ventures in emerging markets. We focus on two critical dimensions of network strategy, namely, broadening and deepening the network and two types of knowledge: market knowledge and technological knowledge. We find that proactive network deepening is associated with market knowledge and network broadening with technological knowledge. From a network perspective, our work highlights the counterintuitive outcom...
#1Tina C. AmbosH-Index: 16
Last. Alexander Zimmermann (University of Liechtenstein)H-Index: 5
view all 3 authors...
While all multinational organizations face the challenge of managing tensions between local integration and global responsiveness, they are increasingly required to pursue additional, often paradoxical, objectives – such as social and commercial goals. However, we know little about how these tensions at the core of the MNC strategy interact. Based on an inductive qualitative study of four headquarters–subsidiary relationships in a Latin American Multinational Hybrid Organization, we develop a mo...
Small- and Medium-sized Enterprises (SMEs) and Multinational Enterprises (MNEs) in the agri-food sector have been overcoming internationalization barriers. However, research is scarce, specifically to meet the Sustainable Development Goals, despite the importance of the sector. The main aim of our study is to explore the archetypes and internationalization pace of internationalized SMEs and MNEs in the agri-food sector, adopting an external perspective and an empirical approach. More particularl...