Abstract
Building and managing international alliances is a challenging activity for many SMEs. This study examines the impact of a set of factors at different stages of international SME alliance evolution on their success. In particular, it examines whether problems in alliance building (poor evaluation of foreign partners as well as problematic negotiations/arrangements) and the configurational fit of ongoing partnerships are directly and indirectly linked to alliance success. The study uses a PLS approach to analyze data gathered by questioning SME managers, and the results show that international SME alliance success depends (in order) on structural fit, cultural fit and strategic fit. The findings demonstrate that problems in partner selection and negotiations/arrangements affect alliance success both directly and indirectly – through their negative impact on the alliance’s ability to attain configurational fit in the ongoing management of the partnership - and that the relationships between alliance building, fit and success vary according previous partner knowledge, international experience and previous investments. So the success of an international SME alliance depends not just on its current congruencies, but is also influenced by decisions taken at the alliance building stage, a factor neglected in extant studies.
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