Abstract
SME leaders with R&D alliances face significant challenges in balancing the need for resource acquisition in the innovation process and the potential for opportunistic behavior by alliance partners. This study, utilizing a sample of 456 SMEs from eight countries, examines how the resource capacity of the SME and the institutional environment are related to the perceptions that owners and managers have about the opportunistic behavior of alliance partners. The results suggest that firm size moderates the relationship between the technological munificence and the predominant culture of the domestic market of the SME and concerns about the opportunistic behavior of an SME alliance partner.
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