Collaborating with competitors to acquire resources

Abstract

This paper uses both a survey and a case study from New Zealand to explore the role of network relationships in the internationalisation of small and medium-sized enterprises. These networks can take various forms so we explore whether one type of network supports internationalisation more than the other, and whether the type of networks created will determine the type of resources the firm acquires. We further explore these issues by categorising respondents as domestic, early international or late international firms, which we term the internationalisation strategy of the firm. The findings from the survey show that the willingness to access external resources, especially from horizontal or competitor-based networks, may be a defining aspect of the international firm. For international firms, horizontal networks represented the principal source of external physical, organisation, technical and reputation resources while, for domestic firms, the more critical network for these resources was socially/vertically related to the firm. The case study confirms and expands on the critical role of horizontal networks for enhancing physical, organisational, technical and reputation resources. In addition, international firms emphasised different resources, with late international firms focusing on external human resources and early international firms focusing on external reputation and organisational resources.