IDEAS home Printed from https://ideas.repec.org/a/eee/intman/v13y2007i4p449-471.html
   My bibliography  Save this article

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

Author

Listed:
  • 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.

Suggested Citation

  • Globerman, Steven & Nielsen, Bo Bernhard, 2007. "Equity versus non-equity international strategic alliances involving Danish firms: An empirical investigation of the relative importance of partner and host country determinants," Journal of International Management, Elsevier, vol. 13(4), pages 449-471, December.
  • Handle: RePEc:eee:intman:v:13:y:2007:i:4:p:449-471
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S107542530700083X
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. J Michael Geringer & Louis Hebert, 1989. "Control and Performance of International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 20(2), pages 235-254, June.
    2. Hitt, Michael A. & Franklin, Victor & Zhu, Hong, 2006. "Culture, institutions and international strategy," Journal of International Management, Elsevier, vol. 12(2), pages 222-234, June.
    3. G R G Benito & B Grøgaard & R Narula, 2003. "Environmental influences on MNE subsidiary roles: economic integration and the Nordic countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(5), pages 443-456, September.
    4. Yadong Luo & Seung H Park, 2004. "Multiparty cooperation and performance in international equity joint ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(2), pages 142-160, March.
    5. Arvind Parkhe, 1991. "Interfirm Diversity, Organizational Learning, and Longevity in Global Strategic Alliances," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(4), pages 579-601, December.
    6. Oded Shenkar, 2001. "Cultural Distance Revisited: Towards a More Rigorous Conceptualization and Measurement of Cultural Differences," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(3), pages 519-535, September.
    7. O'Dwyer, Michèle & O'Flynn, Eamonn, 2005. "MNC-SME strategic alliances -- A model framing knowledge value as the primary predictor of governance modal choice," Journal of International Management, Elsevier, vol. 11(3), pages 397-416, September.
    8. Luo, Yadong, 2001. "Equity sharing in international joint ventures: an empirical analysis of strategic and environmental determinants," Journal of International Management, Elsevier, vol. 7(1), pages 31-58.
    9. Yadong Luo & Seung Ho Park, 2004. "Multiparty cooperation and performance in international equity joint ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(4), pages 334-335, July.
    10. John H Dunning, 1995. "Reappraising the Eclectic Paradigm in an Age of Alliance Capitalism," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(3), pages 461-491, September.
    11. Linda Longfellow Blodgett, 1991. "Partner Contributions as Predictors of Equity Share in International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(1), pages 63-78, March.
    12. Inkpen, Andrew C. & Currall, Steven C., 1998. "The nature, antecedents, and consequences of joint venture trust," Journal of International Management, Elsevier, vol. 4(1), pages 1-20, July.
    13. Joan Enric Ricart & Michael J Enright & Pankaj Ghemawat & Stuart L Hart & Tarun Khanna, 2004. "New frontiers in international strategy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(3), pages 175-200, May.
    14. Marjorie A Lyles & Jane E Salk, 1996. "Knowledge Acquisition from Foreign Parents in International Joint Ventures: An Empirical Examination in the Hungarian Context," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(4), pages 877-903, December.
    15. Oxley, Joanne E., 1999. "Institutional environment and the mechanisms of governance: the impact of intellectual property protection on the structure of inter-firm alliances," Journal of Economic Behavior & Organization, Elsevier, vol. 38(3), pages 283-309, March.
    16. Tiziana Casciaro, 2003. "Determinants of governance structure in alliances: the role of strategic, task and partner uncertainties," Industrial and Corporate Change, Oxford University Press, vol. 12(6), pages 1223-1251, December.
    17. Contractor, Farok J. & Ra, Wonchan, 2002. "How knowledge attributes influence alliance governance choices: A theory development note," Journal of International Management, Elsevier, vol. 8(1), pages 11-27.
    18. Srilata Zaheer & Akbar Zaheer, 2006. "Trust across borders," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(1), pages 21-29, January.
    19. John Hagedoorn & Rajneesh Narula, 1996. "Choosing Organizational Modes of Strategic Technology Partnering: International and Sectoral Differences," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(2), pages 265-284, June.
    20. Lai Xuan Thuy & Truong Quang, 2005. "Relational Capital and Performance of International Joint Ventures in Vietnam," Asia Pacific Business Review, Taylor & Francis Journals, vol. 11(3), pages 389-410, September.
    21. Globerman, Steven & Shapiro, Daniel, 2002. "Global Foreign Direct Investment Flows: The Role of Governance Infrastructure," World Development, Elsevier, vol. 30(11), pages 1899-1919, November.
    22. Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Aggregating governance indicators," Policy Research Working Paper Series 2195, The World Bank.
    23. J Michael Geringer, 1991. "Strategic Determinants of Partner Selection Criteria in International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(1), pages 41-62, March.
    24. Pisano, Gary P, 1989. "Using Equity Participation to Support Exchange: Evidence from the Biotechnology Industry," Journal of Law, Economics, and Organization, Oxford University Press, vol. 5(1), pages 109-126, Spring.
    25. Farok J Contractor & Sumit K Kundu, 1998. "Modal Choice in a World of Alliances: Analyzing Organizational Forms in the International Hotel Sector," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(2), pages 325-356, June.
    26. Oxley, Joanne E, 1997. "Appropriability Hazards and Governance in Strategic Alliances: A Transaction Cost Approach," Journal of Law, Economics, and Organization, Oxford University Press, vol. 13(2), pages 387-409, October.
    27. Das, T. K. & Teng, Bing-Sheng, 2001. "A risk perception model of alliance structuring," Journal of International Management, Elsevier, vol. 7(1), pages 1-29.
    28. Marjorie A Lyles & Jane E Salk, 1996. "Knowledge Acquisition from Foreign Parents in International Joint Ventures: An Empirical Examination in the Hungarian Context," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(5), pages 877-903, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Seok-Woo Kwon & Jerayr Haleblian & John Hagedoorn, 2016. "In country we trust? National trust and the governance of international R&D alliances," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(7), pages 807-829, September.
    2. Stevens, Charles E. & Makarius, Erin E. & Mukherjee, Debmalya, 2015. "It Takes Two to Tango: Signaling Behavioral Intent in Service Multinationals' Foreign Entry Strategies," Journal of International Management, Elsevier, vol. 21(3), pages 235-248.
    3. Antonio Majocchi & Ulrike Mayrhofer & Joaquin Camps, 2010. "The choice between joint ventures and non equity-alliances: evidence from Italian firms," Post-Print halshs-00690216, HAL.
    4. Nielsen, Bo Bernhard, 2010. "Strategic fit, contractual, and procedural governance in alliances," Journal of Business Research, Elsevier, vol. 63(7), pages 682-689, July.
    5. repec:eee:intman:v:23:y:2017:i:3:p:227-241 is not listed on IDEAS
    6. 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.
    7. López-Duarte, Cristina & González-Loureiro, Miguel & Vidal-Suárez, Marta M. & González-Díaz, Belén, 2016. "International strategic alliances and national culture: Mapping the field and developing a research agenda," Journal of World Business, Elsevier, vol. 51(4), pages 511-524.
    8. 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.
    9. repec:eee:iburev:v:26:y:2017:i:3:p:435-447 is not listed on IDEAS
    10. repec:eee:accfor:v:37:y:2013:i:3:p:182-195 is not listed on IDEAS

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:intman:v:13:y:2007:i:4:p:449-471. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.