Network management – the key to the successful rapid internationalisation of the small software firm?
by Mika Ruokonen, Niina Nummela, Kaisu Puumalainen, Sami Saarenketo
International Journal of Entrepreneurship and Innovation Management (IJEIM), Vol. 6, No. 6, 2006

Abstract: The internationalisation of technology-based small firms and their networks has been the subject of many studies in recent years. However, these studies concentrate mainly on network formation and provide limited information on network management during the internationalisation process. This paper describes the role of partnerships in the internationalisation of small software firms, and analyses the network development in two case companies. The study revealed that the product plays a significant role in the choice of international partnership strategies, four of which are put forward as relevant to software firms. The selection of a suitable strategy should be based on a thorough evaluation of the company's products, its own resources, and its requirements for potential partners. Managers should also pay particular attention to creating a revenue logic that is mutually rewarding for the company itself and its partners. Although partnership with a local distributor is often the most sensible operational mode, the company should remain sensitive to customer needs and requirements.

Online publication date: Mon, 25-Sep-2006

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