Getting by With a Little Help From Our Friends: Cultural Influences on Entrepreneurial Orientation and Strategic Alliance Portfolio Diversity in SMEs

Abstract

We investigate how entrepreneurial orientation (EO) and national culture influence the formation of a diversified strategic alliance portfolio, encompassing various cooperative agreements based on governance mechanisms and partner diversity. A diverse strategic alliance portfolio structured in this manner may be used by smaller firms to derive benefits from social capital and absorb environmental complexities, increasing firms’ ability to survive environmental dynamism. Empirical models are estimated using data from 529 small- and medium-sized enterprises (SMEs) located in five countries – Indonesia, Finland, Mexico, the Netherlands, and Sweden. Our findings indicate that SMEs with stronger EO are more likely to establish diversified strategic alliance portfolios. However, this effect is moderated by various national cultural factors (i.e., uncertainty avoidance, individualism, and masculinity).