The best opportunity for growth is often overseas, even for smaller entrepreneurial firms. However, resource constrained smaller firms do not have as many available entry strategies as do larger Multinational Corporations (MNCs). Smaller firms frequently must ally themselves with partners in order to make international expansion feasible. The alliance of two distinct parties central to these entry strategies lends itself to an Agency Theory (AT) perspective. AT illuminates the underpinnings of these relationships; in particular, highlighting problems and risks that the respective parties face when entering into the partnership. The paper develops these problems within the entrepreneur/export agent realm and suggests contractual methods for overcoming these problems.
This article is distributed using a Creative Commons Attribution-NonCommercial 4.0 license. Copyright remains with the author(s).