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International Small Business Journal
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Internationalization and Alliance Formation

Evidence from Turkish SMEs

Mehmet Ali Ulubasoglu

Deakin University, Australia, maulubas{at}deakin.edu.au

Muhammet Akdis

Pamukkale University,Turkey, makdis{at}pamukkale.edu.tr

Sabahat Bayrak Kök

Pamukkale University, Turkey, sbayrak{at}pamukkale.edu.tr

This study explores the issue of internationalization through forming alliances with foreign capital in the small business sector in Turkey. Using a sample of 257 SMEs from this emerging market economy, collected via a field study, it finds that Turkish SMEs would like to form alliances with foreign capital for expanding their production capacity and accessing to world markets. Multivariate multinomial logit models are employed to analyse the survey data econometrically. Size-specific, sector-specific and management-specific factors are identified in the alliance motivation. The `market' and `finance' aspects of alliances prevail in the multivariate analysis with significant implications. There is also evidence that some conditional relationships offered by multivariate analysis differ from unconditional associations found in the survey, which implies that alliance motivation is partly a product of multidimensional decision-making process on behalf of SMEs.

Key Words: alliances • foreign capital • internationalization • SMEs • Turkey

International Small Business Journal, Vol. 27, No. 3, 337-361 (2009)
DOI: 10.1177/0266242608094029
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