Internationalisation and Alliance Formation: Evidence from Turkish SMEs
AbstractThis study explores the issue of internationalization through forming alliances with foreign capital in the small business sector in Turkey. Using a sample of 257 SMEs from this emerging market economy, collected via a field study, we investigate the impact of size (measured by investment levels and number of workers), sectoral preferences, factors causing low capacity utilization, management control, and the education level of CEOs on the alliance decisions of small firms. Multinomial logit estimations are employed to obtain a detailed and rich set of results. Overall, we find that Turkish SMEs would like foreign capital to help them expand their production capacity, while also serving as a conduit to convey their products to world markets. Size-specific, sectorspecific and management-specific factors are identified in the alliance behavior. We also investigate whether alliance motivation is a product of unidimensional or multidimensional decision-making process on the part of SMEs. Size, as shown by investment, and factors causing low capacity utilization are found to be the main contributors to the multidimensionality of the alliance motivation through influencing the alliance behavior predicted by other firm attributes.
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Bibliographic InfoPaper provided by Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance in its series Economics Series with number 2006_05.
Length: 46 pages
Date of creation: 13 Oct 2006
Date of revision:
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Internationalization; Alliances; Foreign Capital; SMEs; Turkey;
Find related papers by JEL classification:
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
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