The laws of attraction: What attracts innovative start-up firms to partnerships with global MNCs?

This paper explores the factors that drive small, globally oriented start-up firms in choosing one global multinational corporation (MNC) partner over another. Drawing upon value-added theory, it argues that start-up firms choose their global MNC partners in response to the added-value offered by MNC constellations. Based on a synthesis of the literature and a multiple case study of 14 software firms, the paper proposes that small, globally oriented start-ups base this choice on expectations of capturing value directly in the form of direct financial returns and indirectly by accessing the MNC's market reach, reputation, and technology leadership domains.