ABSTRACT
Multinational subsidiaries constitute a potential source of social capital for small-and medium-sized enterprises (SMEs) that can help in the internationalization process. Such social capital is particularly valuable because it is a form of bridging (socially heterogeneous), rather than bonding (socially homogenous), social capital, and could therefore potentially lead to new information, ideas and opportunities. However, even in the best situations, limits on information exchange and trust hamper collaboration between SMEs and multinational corporation (MNC) subsidiaries. Facilitation by a neutral agency may help in overcoming these barriers. This chapter presents the case of the Scottish Technology and Collaboration (STAC) initiative as an illustration of the facilitation process – comprising architecting, brokering and coaching – and its outcomes, chiefly the formation of social capital, which in turn has the potential to lead to knowledge outcomes and, ultimately, internationalization for the SME. This case reveals important implications for both policy and theories of SME internationalization, especially the need to recognize and lever underutilized sources of social capital.
