The Moderating Role of Alliances in the EO – Performance Relationship

Abstract

International entrepreneurship research maintains that firms with strong entrepreneurial orientations expand to international markets to enhance performance. Yet these firms can suffer from resource constraints as they move abroad. To alleviate this problem some research suggests they should participate in strategic alliances. We develop and test a theoretical perspective that combines these ideas, noting that participation in research or marketing alliances in foreign markets helps improve international performance both directly and by enhancing the application of entrepreneurial orientation in the foreign market. Based on a survey of SMEs from the US and UK, our findings indicate that firms that participate in research or marketing alliances in foreign markets tend to have higher international performance. Our analysis also shows that participating in research or marketing alliances positively moderates the relation between entrepreneurial orientation and international performance. These results have im...