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Cooperative Strategies between Foreign Firms in an Overseas Country

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  • Yigang Pan

    (University of Oregon and DePaul University)

  • David K Tse

    (City University of Hong Kong)

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    Abstract

    In this paper, we study the cooperative strategies between two firms in an overseas country. In part 1, we examine the circumstances under which foreign firms would cooperate with another foreign firm in a third country market. Drawing upon existing literature, we develop and test a set of hypotheses using a longitudinal data set from China. The types of cooperative arrangements include all the major modes of operation. In part 2, we further investigate what types of operation and level of control exist among the cooperative arrangements between two foreign firms in China. We used a sample of 483 cooperative arrangements between two firms from Hong Kong, the U.S., Japan, Germany, or Britain. This study offers interesting insight as to why foreign firms form cooperative arrangements in an overseas country and what types of cooperative arrangements these firms prefer.© 1996 JIBS. Journal of International Business Studies (1996) 27, 929–946

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    Bibliographic Info

    Article provided by Palgrave Macmillan in its journal Journal of International Business Studies.

    Volume (Year): 27 (1996)
    Issue (Month): 5 (December)
    Pages: 929-946

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    Handle: RePEc:pal:jintbs:v:27:y:1996:i:5:p:929-946

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    Cited by:
    1. Pan, Yigang & Li, Xiaolian, 1998. "Alliance of foreign firms in equity joint ventures in China," International Business Review, Elsevier, Elsevier, vol. 7(4), pages 329-350, August.
    2. Morschett, Dirk & Schramm-Klein, Hanna & Swoboda, Bernhard, 2010. "Decades of research on market entry modes: What do we really know about external antecedents of entry mode choice?," Journal of International Management, Elsevier, Elsevier, vol. 16(1), pages 60-77, March.
    3. López-Navarro, Miguel Á. & Camisón-Zornoza, César, 2003. "The effect of group composition and autonomy on the performance of joint ventures (JVs): an analysis based on Spanish export JVs," International Business Review, Elsevier, Elsevier, vol. 12(1), pages 17-39, February.
    4. Jing Yang & Frank Tipton & Jiatao Li, 2011. "A review of foreign business management in China," Asia Pacific Journal of Management, Springer, Springer, vol. 28(3), pages 627-659, September.
    5. Yue Wang & Stephen Nicholas, 2007. "The formation and evolution of non-equity strategic alliances in China," Asia Pacific Journal of Management, Springer, Springer, vol. 24(2), pages 131-150, June.
    6. Hanna Kuittinen & Kalevi Kyläheiko & Jaana Sandström & Ari Jantunen, 2009. "Cooperation governance mode: an extended transaction cost approach," Journal of Management and Governance, Springer, Springer, vol. 13(4), pages 303-323, November.
    7. Sim, A.B & Ali, Yunus, 1998. "Performance of international joint ventures from developing and developed countries: An empirical study in a developing country context," Journal of World Business, Elsevier, Elsevier, vol. 33(4), pages 357-377, January.
    8. O'Connor, Neale G. & Luo, Yadong & Lee, Danny K. Y., 2001. "Self-selection, socialization and budget control in the PRC: a study of a U.S.-Sino joint venture and Chinese state-owned enterprise," Journal of Business Research, Elsevier, Elsevier, vol. 52(2), pages 135-148, May.
    9. Canabal, Anne & White III, George O., 2008. "Entry mode research: Past and future," International Business Review, Elsevier, Elsevier, vol. 17(3), pages 267-284, June.
    10. Zhou, Dongsheng & Li, Shaomin & Tse, David K., 2002. "The impact of FDI on the productivity of domestic firms: the case of China," International Business Review, Elsevier, Elsevier, vol. 11(4), pages 465-484, August.
    11. Peng, Mike W. & Lu, Yuan & Shenkar, Oded & Wang, Denis Y. L., 2001. "Treasures in the China house: a review of management and organizational research on Greater China," Journal of Business Research, Elsevier, Elsevier, vol. 52(2), pages 95-110, May.
    12. Walsh, James P. & Wang, ErPing & Xin, Katherine R., 1999. "Same bed, different dreams: working relationships in Sino--American joint ventures," Journal of World Business, Elsevier, Elsevier, vol. 34(1), pages 69-93, April.
    13. Huang, Yasheng & Di, Wenhua, 2004. "A Tale of Two Provinces: The Institutional Environment and Foreign Ownership in China," Working papers, Massachusetts Institute of Technology (MIT), Sloan School of Management 4482-04, Massachusetts Institute of Technology (MIT), Sloan School of Management.

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