Melike Nur Findikoglu is Visiting Scholar in the William Davidson Faculty of Industrial Engineering and Management at Technion Israel Institute of Technology.
Do Small and Medium-Sized IT Firms Form Service Partnerships with Nonlocal IT Firms? An Assessment of Facilitators
Article first published online: 3 APR 2014
© 2014 International Council for Small Business
Journal of Small Business Management
How to Cite
Findikoglu, M. N. and Watson-Manheim, M. B. (2014), Do Small and Medium-Sized IT Firms Form Service Partnerships with Nonlocal IT Firms? An Assessment of Facilitators. Journal of Small Business Management. doi: 10.1111/jsbm.12117
- Article first published online: 3 APR 2014
For small and medium-sized information technology firms (IT SMEs), the service partnerships formed with other IT firms are strategic instruments to overcome their resource constraints, increase efficiency, and offer complementary services to their customers. Although these firms have a tendency to form local partnerships due to ease of trust building, few of them are engaged in nonlocal partnerships. This research aims to explore the facilitators of this divergent firm behavior. The findings suggest that a firm's alliance capabilities and organizational proximities between distant partners can substitute the lack of geographical proximity and enable IT SMEs' engagement in nonlocal service partnerships. More importantly, the type of IT service rendered through the partnership acts as a moderator and determines the extent of the organizational capabilities and proximities.