Piggybacking your way to independent internationalization

Abstract

This report investigates piggybacking relationships in the NCE subsea cluster in Bergen region. A piggybacking relationship consists of a rider (SME) and a carrier (larger MNC), where the rider exploits the carriers’ marketing resources. These relationships enable small firms, lacking resources and competencies, to overcome barriers in foreign markets. The research investigates whether piggybacking increases the riders’ probability to become an independent international firm eventually, and use a multiple-case study to test 6 propositions. The findings reveal that foreign-established riders are more likely to conduct independent international strategies, and riders who are entrepreneurial and flexible tend to become more international.