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Environmental Shocks and SME Alliance Formation Intentions in an Emerging Economy: Evidence from the Asian Financial Crisis in Indonesia

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  • Louis D. Marino
  • Franz T. Lohrke
  • John S. Hill
  • K. Mark Weaver
  • Tulus Tambunan

Abstract

Environmental shocks can occur when emerging country governments open their markets to outside influences. We extend research conducted primarily in mature economies on how managers react to environmental shocks by evaluating how environmental shock type, a firm's strategic orientation, and its slack resources affected strategic alliance formation intentions during and immediately following the Asian Financial Crisis. Results from two Indonesian small– and medium–sized enterprises (SME) samples show that these factors influenced alliance intentions, although not always in ways that were consistent with previous research findings in more mature markets. Overall, our results provide critical insights into emerging market firms’ strategic actions, particularly related to key managerial motivations for SME alliance formation.

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  • Louis D. Marino & Franz T. Lohrke & John S. Hill & K. Mark Weaver & Tulus Tambunan, 2008. "Environmental Shocks and SME Alliance Formation Intentions in an Emerging Economy: Evidence from the Asian Financial Crisis in Indonesia," Entrepreneurship Theory and Practice, , vol. 32(1), pages 157-183, January.
    • Handle: RePEc:sae:entthe:v:32:y:2008:i:1:p:157-183
    DOI: 10.1111/j.1540-6520.2007.00220.x
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    8. Herman Belgraver & Ernst Verwaal, 2018. "Organizational capital, production factor resources, and relative firm size in strategic equity alliances," Small Business Economics, Springer, vol. 50(4), pages 825-849, April.
    9. Sierk Horn & Tomoki Sekiguchi & Matthias Weiss, 2021. "Thrown off track? Adjustments of Asian business to shock events," Asian Business & Management, Palgrave Macmillan, vol. 20(4), pages 435-455, September.
    10. Grilli, Luca & Murtinu, Samuele, 2018. "Selective subsidies, entrepreneurial founders' human capital, and access to R&D alliances," Research Policy, Elsevier, vol. 47(10), pages 1945-1963.
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    13. Ebersberger, Bernd & Kuckertz, Andreas, 2021. "Hop to it! The impact of organization type on innovation response time to the COVID-19 crisis," Journal of Business Research, Elsevier, vol. 124(C), pages 126-135.
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    15. Eleni Papaoikonomou & Pere Segarra & Xiaoni Li, 2012. "Entrepreneurship in the Context of Crisis: Identifying Barriers and Proposing Strategies," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 18(1), pages 111-119, February.
    16. Christopher Boudreaux & Anand Jha & Monica Escaleras, 2021. "Weathering the Storm: How Foreign Aid and Institutions Affect Entrepreneurship Following Natural Disasters," Papers 2104.12008, arXiv.org.
    17. Kun Liu & Kun Fu & Jing Yu Yang & Ahmad Al Asady, 2023. "A System Justification Theory of Entrepreneurial Attitudinal Change During a Crisis," Entrepreneurship Theory and Practice, , vol. 47(3), pages 893-923, May.
    18. Shirokova, G. & Beliaeva, T. & Gafforova, E., 2016. "Strategic orientations during economic crisis: Stay focused or adopt a broader strategic direction?," Working Papers 6444, Graduate School of Management, St. Petersburg State University.
    19. Andreea N. Kiss & Stephanie Fernhaber & Patricia P. McDougall–Covin, 2018. "Slack, Innovation, and Export Intensity: Implications for Small– and Medium–Sized Enterprises," Entrepreneurship Theory and Practice, , vol. 42(5), pages 671-697, September.
    20. Étienne St-Jean & Maripier Tremblay, 2023. "Turbulence and adaptations to the coronavirus crisis: resources, coping and effects on stress and wellbeing of entrepreneurs," International Entrepreneurship and Management Journal, Springer, vol. 19(3), pages 1153-1175, September.
    21. Celeste Varum & Vera Rocha, 2013. "Employment and SMEs during crises," Small Business Economics, Springer, vol. 40(1), pages 9-25, January.
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