Relationship Formation in International Business Alliances: The Case of Māori Values

Abstract

Māori businesses participating in international business rely on internationalisation to seek larger markets and knowledge but generally suffer from resource shortages and lack firm-specific advantages, making alliances an important way to overcome these disadvantages. The rationale for this study is seated in the importance of understanding how Māori values help mitigate some of the challenges experienced in the formation of international business alliances. The study asks: • What are the attributes of successful relationship formation while developing international business alliances from the perspective of Māori businesses? • What is the role of Māori business values in the development of competencies for the formation of international business alliances? The methodology adopted a critical realism research philosophy to bridge micro- and firm-level perspectives, allowing for generalisations to be drawn from the small numbers of participants in qualitative research, and the inclusion of prior theory. This is supported with a Kaupapa Māori study design and conduct. There are nine case studies with firms in the process of alliance formation, the data gathered from semi-structured interviews as pūrākau (storytelling) with key decision-makers.

The study identified two overarching core principles in relationship formation: Tikanga (customary system of values and practices) and Whakawhirinaki (trust). Five additional supporting principles were identified in the thematic analysis: Whānau and Whakapapa (family, genealogy and the why of things, kupu whakataki); Whanaungatanga and Whakawhanaungatanga (the relationship and the process of establishing the relationship); Tūhono and Kotahitanga (alignment and unity, togetherness); Mātauranga (learning and knowledge); and Kanohi ki te Kanohi (face to face).

Implications of this research are the key principles of partnership suitability, the processes in the alliance formation which impact the success of the relationship, and important perspectives on network alliances. These perspectives expand on key processes at the centre of these networks and emphasises Māori business values which may inform processes in international business with alternative ways of redressing high failure rates in international business alliances by focusing on people and processes equally. The study proposes an International Tikanga Business Alliance framework which could improve partner selection, communications, align values, objectives, participation from alliance partner executives and improve resilience through challenging periods. The study suggests policy and practice implications.