Dancing with a Dragon: Snags in International Cooperation Between Two IT Companies

Abstract

International strategic alliances are an increasingly popular way for companies to expand their operations beyond national boundaries. For small and medium-sized ICT enterprises, this route provides interesting characteristics. However, success does not come automatically in international strategic alliances. This chapter applies the aspects of strategic fit, resource fit, cultural fit and organizational fit to analyze the cooperation between a small Dutch IT company and a major Chinese Internet content provider. Their cooperation does not run smoothly, and the chapter describes the background and presents details on their agreement. After both opposing views are described, the case is analyzed. The chapter concludes that in this case study, there are several misfits. Even though the major misfits are in the strategic area, these could be resolved by improving the mutual understanding of positions and objectives. Moreover, it is more appropriate to approach the intended cooperation as a virtual alliance.