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Equity versus non-equity international strategic alliances involving Danish firms: An empirical investigation of the relative importance of partner and host country determinants

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Author Info

  • Globerman, Steven
  • Nielsen, Bo Bernhard

Abstract

A substantial literature has evolved focusing on the ownership structure of international strategic alliances (ISAs). Most of the relevant studies are theoretical in nature and concentrate on the conceptual factors that influence the choice between equity and non-equity structures. A smaller number of studies provide some empirical evidence on the importance of some of the conceptual factors. The theoretical literature highlights the potential influence of relational capital and transaction costs as determinants of ISA structure; however, there is little empirical evidence on the relative importance of these potential determinants. Moreover, there is only limited and indirect evidence bearing upon the impact of host country governance attributes on ISA ownership structure. In this study, we provide statistical evidence on the importance of potential determinants of governance mode choice for a sample of ISAs involving Danish firms. Our study documents how the determinants of governance mode choice vary in importance depending upon the "quality" of the governance infrastructure of the host country.

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Bibliographic Info

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

Volume (Year): 13 (2007)
Issue (Month): 4 (December)
Pages: 449-471

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Handle: RePEc:eee:intman:v:13:y:2007:i:4:p:449-471

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Related research

Keywords: Trust Governance International Strategic Alliance;

References

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Citations

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Cited by:
  1. Nielsen, Bo Bernhard, 2010. "Strategic fit, contractual, and procedural governance in alliances," Journal of Business Research, Elsevier, vol. 63(7), pages 682-689, July.
  2. Lai, Jung-Ho & Chang, Shao-Chi & Chen, Sheng-Syan, 2010. "Is experience valuable in international strategic alliances?," Journal of International Management, Elsevier, vol. 16(3), pages 247-261, September.
  3. Nielsen, Bo Bernhard & Nielsen, Sabina, 2011. "The role of top management team international orientation in international strategic decision-making: The choice of foreign entry mode," Journal of World Business, Elsevier, vol. 46(2), pages 185-193, April.

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