Utilisation of strategic alliances in the processes of internationalisation: an empirical study of small and medium sized high-tech enterprises,

In this empirical research carried out after a study of small and medium sized hightech Quebec companies, we show that 1) strategic alliance is the most popular strategic maneuver for high-tech S.M.E.s in their internationalization process; 2) although the majority of our sample enterprises have experienced an international evolution in line with the Internationalization Stages Theory regarding the more "traditional strategies" (importation, exportation, joint-venture and subsidiary), they are simultaneously utilizing many different types of strategic alliances without any particular chronological order. Introduction Internationalization is one of the biggest challenges for the high-tech S.M.E. which is already very limited in its resources. Many high-tech S.M.E.s, although prosperous locally, fail in foreign markets. Among the principle questions raised in the domain of international strategic management of high-tech S.M.E.s, those related to the choice and the change of strategic maneuvers in the processes of internationalization are fundamental. Although a few strategic maneuvers have been studied separately, little research has been done on this subject, especially on the role and the utilization of strategic alliances, which are becoming popular, at different stages of internationalization processes. Thus, the objective of this research resides in the comprehension of the logic followed by high-tech S.M.E.s in the utilization of different types of strategic alliances in their internationalization process. Literature review In confronting this globalization of markets, a S.M.E. can act alone or with others (Julien and Morin,1995). Apart from importation and exportation, the strategies used by enterprises acting alone essentially consist of the establishment of international subsidiaries (in sales and in production). To accomplish this, two approaches are possible: by acquiring an existing enterprise or by the creation of a new one (Solocha and Soskin, 1994). The three international strategies that an enterprise can adopt when acting alone can equally be accomplished in alliance with other enterprises. Grouped import and export activities involving more than one enterprise can be carry out (Julien and Morin, 1995) and subsidiaries can be set up with partners. In short, there exist a wide range of agreements and types of alliances which can be developed between enterprises in order to tap into foreign market opportunities. Perlmutter and Heenan (1986), as well as Ohmae (1989) are convinced of the necessity to cooperate in order to be globally competitive. According to Shaw (1990), Brown (1991) and Van Horn (1990), Strategic alliances are an excellent way for enterprises to commercialize their products internationally and to make up for a certain rarity of resources. Based on the works of certain authors (Terpstra and Simonin, 1993: Slatter, 1992: Terpstra and Yu, 1990: Forrest, 1990), we are currently developing a typology of different types of strategic alliances (see Figure 1). Figure 1: Types of strategic alliances dominent parent Coenterprise shared management independant Joint entity