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Determinants of foreign ownership in international R&D joint ventures: Transaction costs and national culture

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  • Richards, Malika
  • Yang, Yi
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    Abstract

    In this study, we integrate the transaction costs economics and national culture perspectives by examining the determinants of foreign equity ownership in international R&D joint ventures. Specifically, we focus on the impact of different uncertainty dimensions-environmental and behavioral-on the share of equity that multinational enterprises take in their overseas R&D joint ventures. We further investigate the roles that two national culture components-power distance and uncertainty avoidance-play in this process. Using 543 international R&D joint venture announcements by foreign enterprises in China, India, Japan, and the United States during the period of 1985 to 2004, our results provide support for both transaction costs economics and the national culture perspectives.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of International Management.

    Volume (Year): 13 (2007)
    Issue (Month): 2 (June)
    Pages: 110-130

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    Handle: RePEc:eee:intman:v:13:y:2007:i:2:p:110-130

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    Related research

    Keywords: International joint ventures Equity ownership R&D;

    References

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    Cited by:
    1. Lai, Jung-Ho & Chen, Li-Yu & Chang, Shao-Chi, 2012. "The board mechanism and entry mode choice," Journal of International Management, Elsevier, vol. 18(4), pages 379-392.
    2. Jiang, Xu & Li, Yuan & Gao, Shanxing, 2008. "The stability of strategic alliances: Characteristics, factors and stages," Journal of International Management, Elsevier, vol. 14(2), pages 173-189, June.

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