THINK GLOBALLY, ACT COOPERATIVELY: LOCAL MILIEU DYNAMICS, MNE-INV ENGAGEMENT AND NEW VENTURE INTERNATIONALIZATION.

We examine the MNE-INV interface, specifically the conditions under which MNEs constitute an internationalization pathway for INVs, and the process through which this occurs. Based on three longitudinal cases in the Bangalore software industry, we identify three distinct pathways: passive, active and co-creation, which exhibit increasing levels of new ventures’ technological innovation and MNEs’ partnering innovation. For both sets of firms to attain their respective ends, their strategies need to co-align – and co-evolve over time with the local milieu – through the appropriate partnering strategy and interface, which reflect these actors’ respective strategies and the “effortful” nature of MNE-INV engagement.