MNE-SME cooperation: an integrative framework

Prashantham, S and Birkinshaw, J (2020) MNE-SME cooperation: an integrative framework. Journal of International Business Studies, 51 (7). pp. 1161-1175. ISSN 0047-2506

Abstract

Although international business scholars have begun to recognize the division of entrepreneurial labor between MNEs and SMEs, there is a fragmented understanding of the different forms MNE–SME cooperation can take. We develop a typology that takes into account not only complementarity of capabilities but also, crucially, the compatibility of intent between MNEs (exploration vs. exploitation) and SMEs (international vs. domestic orientation). The framework offers a novel way to understand the forms and dynamics of MNE–SME cooperation. We also show how it can be applied more broadly, by considering its application to societal challenges, such as achieving the United Nations’ Sustainable Development Goals.