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Facilitation of links between multinational subsidiaries and SMEs: The Scottish Technology and Collaboration (STAC) initiative

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  • Prashantham, Shameen
  • McNaughton, Rod B.

Abstract

Multinational subsidiaries constitute a potential source of social capital for SMEs that can help in the internationalisation process. Such social capital is particularly valuable because it is a form of bridging (socially heterogeneous), rather than bonding (socially homogenous), social capital, and therefore could potentially lead to new information, ideas and opportunities. However, even in the best situations, limits on information exchange and trust hamper collaboration between SMEs and MNC subsidiaries. Facilitation by a neutral agency may help to overcome these barriers. This paper presents the case of the Scottish Technology and Collaboration (STAC) initiative as an illustration of the facilitation process--comprising architecting, brokering and coaching--and its outcomes, chiefly the formation of social capital, which in turn has the potential to lead to knowledge outcomes and ultimately internationalisation for the SME. This case reveals important implications for both policy and theories of SME internationalisation, especially the need to recognize and lever under-utilized sources of social capital.

Suggested Citation

  • Prashantham, Shameen & McNaughton, Rod B., 2006. "Facilitation of links between multinational subsidiaries and SMEs: The Scottish Technology and Collaboration (STAC) initiative," International Business Review, Elsevier, vol. 15(5), pages 447-462, October.
    • Handle: RePEc:eee:iburev:v:15:y:2006:i:5:p:447-462
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    Cited by:

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    3. Pla-Barber, José & Alegre, Joaquín, 2007. "Analysing the link between export intensity, innovation and firm size in a science-based industry," International Business Review, Elsevier, vol. 16(3), pages 275-293, June.
    4. Efrat, Kalanit & Øyna, Stine, 2021. "An interaction orientation approach to SME-Intermediaries relationships," European Management Journal, Elsevier, vol. 39(4), pages 508-520.
    5. Shameen Prashantham & Julian Birkinshaw, 2020. "MNE–SME cooperation: An integrative framework," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(7), pages 1161-1175, September.
    6. Juan García-Álvarez de Perea & Carolina Ramírez-García & Aida Del Cubo-Molina, 2019. "Internationalization Business Models and Patterns of SMEs and MNEs: A Qualitative Multi-Case Study in the Agrifood Sector," Sustainability, MDPI, vol. 11(10), pages 1-26, May.
    7. Rimante Sedziniauskiene & Jurgita Sekliuckiene & Antonella Zucchella, 2019. "Networks’ Impact on the Entrepreneurial Internationalization: A Literature Review and Research Agenda," Management International Review, Springer, vol. 59(5), pages 779-823, October.
    8. Niittymies, Aleksi & Pajunen, Kalle, 2020. "Cognitive foundations of firm internationalization: A systematic review and agenda for future research," International Business Review, Elsevier, vol. 29(4).

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