Abstract
One often overlooked contribution from overseas alliance partners regards the utilization of the local workforce. Businesses particularly those operating in developed industrial economies are aware of the threats due to the negative effects of demographic changes and generational shifts. One feasible strategic option for SMEs is to engage in overseas expansion through alliances targeting locations where the population is relatively younger. This strategic approach should address the scarcity of employees by turning their organisations into magnets for employees through an attractive and legitimate work environment. SMEs may secure the benefits of a younger workforce through expansion in those emerging markets where the demographic pyramid still shows a large base. SMEs may increase their attractiveness to the local workforce by designing a meaningful work environment and augmenting their local legitimacy. We propose a conceptual model and proposition regarding the attractiveness of the firm towards local workers in emerging markets with young population-base. A more attractive and legitimate internal working environment should support the expansion of SMEs through international alliances. Implications for practitioners and policy makers are provided.