C A S E T E A C H I N G N O T E S
Gridsum and the Microsoft partner ecosystem:
engaging in China and beyond?
Shameen Prashantham
1. Introduction
This short case study looks at the role of network relationships in the internationalisation of
Gridsum, a small and young entrepreneurial software firm based in Beijing, China. Specifically
2. Position of the case
The case study is concerned with how network relationships can enable (and arguably, constrain
to some extent) the success of smaller firms international strategy. It is a small firm case to
3. Learning objectives
The case is primarily designed to help students understand the ideas of entrepreneurial networks
and internationalisation. In particular, the case draws attention to the role of network
4. Teaching scheme
As a short case, Gridsum and the Microsoft partner ecosystem is most likely to be used as a
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5. Questions for discussion
The following questions can be used:
1. Why did Gridsum want to partner with Microsoft?
6. Case analysis
1. Why did Gridsum want to partner with Microsoft?
Gridsums wish to partner with Microsoft can be attributed to three main factors.
First, Gridsum had made a strategic decision from the outset to use Microsoft technology as its
underlying platform, and thus was joined at the hip with that corporation. It would thus be
More generally, instructors might want to steer the discussion towards the more fundamental
notion that network relationships play an important role in the internationalisation of smaller
entrepreneurial firms, and in this context, MNE relationships are potentially an important source
of network resources for internationalisation-seeking firms.
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2. How did Gridsum gain the attention of a large multinational like Microsoft?
Although it is understandable that some small entrepreneurial firms, such as Gridsum, would
wish to engage with large MNEs like Microsoft, it is not at all self-evident that this can occur
readily. Engagement between these very different types of firms is neither straightforward nor
easy. Human tendency is for similar actors to engage with each other; sociologists call this the
Second, and related, Gridsum exploited a systematic point of entry (the partner programme) to
enter the MNEs network and thereafter took advantage of this toe-hold through a succession
of impressive technological developments. Although arguably Gridsum got lucky in that it
was in the right place at the right time when Microsofts partnering initiative was introduced, so
were other firms and yet no other firm attained the significance that Gridsum did with
Microsoft China. The remaining observations help to explain why.
3. How can MNE relationships be leveraged as a pathway to international markets by small
and young entrepreneurial firms?
A key subtext of this case study is that by engaging closely with Microsoft in China, Gridsum
sought to eventually realise its global aspirations. But this requires creative and active efforts;
Third, Gridsum seized, and then strenuously followed up on, opportunities to engage with
boundary-spanning individuals, chiefly corporate visitors from Microsoft headquarters in the
US. Of course, in Gridsums case this included the ultimate boundary-spanner, i.e. the MNEs
worldwide CEO. Arguably, this was a stroke of luck for Gridsum (and one that they then
actively followed up on through numerous visits to the US). However, more generally this
principle of cultivating relationships with boundary-spanning individuals is one that several
innovative and enterprising ventures can adopt vis-à-vis MNE relationships.
Useful additional reading:
Prashantham, S. and Birkinshaw, J. (2008), Dancing with Gorillas: How Small Firms Can
Effectively Partner with Multinational Corporations, California Management Review,
51(1): 623.