Overcoming the ‘smallness challenge’ in asymmetrical alliances

Krister Salamonsen

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Entrepreneurship, Universities & Resources

Frontiers in European Entrepreneurship Research

Frontiers in European Entrepreneurship series

Edited by Ulla Hytti, Robert Blackburn, Denise Fletcher and Friederike Welter

The role of resources is pivotal in entrepreneurship for the success of new and small ventures, though most face resource constraints. The book offers multiple perspectives on analysing and understanding the importance of resources in entrepreneurship development. Approaching the subject with both a practice-theory and research-based approach, the contributors analyse topics such as processes and structures in social entrepreneuring; entrepreneurship and equity in crowdfunding; and forming alliances with large firms to overcome resource constraints. The contributors provide evidence, for example, on how business angels can contribute more than finance to small ventures and how the flexibility of resources is important in internationalisation.

Monograph Book

Published in print:: 25 Nov 2016

ISBN:: 9781786432537

eISBN:: 9781786432544

DOI:: https://doi.org/10.4337/9781786432544

Pages:: c 224

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Chapter 6: Overcoming the ‘smallness challenge’ in asymmetrical alliances

Krister Salamonsen

Monograph Chapter

Published:: 25 November 2016

DOI:: https://doi.org/10.4337/9781786432544.00013

Pages:: 94–116 (23 total)

Collection: Business 2016

Abstract

This study draws on the concepts of geographical, organizational and technological proximity to study the perspective of small firms in five asymmetrically sized strategic alliances. A case study design is applied, and interview data from the Norwegian oil and gas industry form the basis for a cross-case analysis. Findings illustrate that organizational and technological proximity mitigates small firms’ liabilities of smallness, whereas geographical proximity has a mitigating effect only when a small firm lacks the knowledge and experience necessary to interact effectively with its large partner. The study contributes to opening the black box about how small firms can survive and prosper in large-partner strategic alliances.

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