Handbook of Research on International Entrepreneurship
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Handbook of Research on International Entrepreneurship

Edited by Léo-Paul Dana

This unique reference book provides an array of diverse perspectives on international entrepreneurship, a new and emerging field of research that blends concepts and methodologies from more traditional social sciences. The Handbook includes chapters written by top researchers of economics and sociology, as well as academic leaders in the fields of entrepreneurship and international business. State-of-the-art contributions provide up-to-date literature reviews, making this book essential for the researcher of entrepreneurship and the internationalisation of entrepreneurs.
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Chapter 13: Marshalling Relations

Hamid Etemad


Hamid Etemad Introduction Markets were traditionally segmented: large companies competed in international markets while smaller businesses remained local or regional. However, the global competitive environment is changing dramatically: the drivers of globalization are removing the barriers that segregated the competitive space of the small and the large firms; firms of all sizes have begun to share the same competitive space (Etemad, 1999); it is becoming increasingly difficult for independent small firms to thrive on their own unless they are globally competitive. As smaller firms are forced to compete in the global markets, they are seeking, and also experimenting with, new arrangements for internationalization, including a rich range of collaborative networks. Some of these arrangements are rival models to multinational enterprises (MNEs). They also put smaller firms in direct competition with these large and integrated firms in the international competitive landscape (Dana, Etemad and Wright, 2001; Etemad, 2003). As these emerging models of international business competition involve both the small and the large enterprises, each relying on different sets of capabilities and skills, and invoke different strategies as a basis of competition in the global environment, the traditional theories of internationalization are rendered impotent. Paramount among these capabilities, especially with smaller firms, is the ability to manage their relations with others. The primary objective of this chapter is to demonstrate that patterns of growth and international expansion are increasingly dependent on managing an enterprise’s commercial, industrial and even political interactions with a host of other firms, associates and...

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