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Partner selection for international strategic alliances in emerging economies

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  • Li, Dan
  • Ferreira, Manuel Portugal

Abstract

Summary Repeated partnerships in international strategic alliances (ISAs) should mitigate the effects of an under-established institutional framework, lower transaction costs, and create the conditions for the exploitation of firm-specific capabilities by multinational corporations (MNCs). However, to the best of our knowledge, no research has investigated MNCs' preference about prior partners for ISA projects in emerging economies. This is surprising, given the high risks characterizing ISAs and the potential for reducing transactional hazards by engaging repeatedly with the same partner. Our analyses of 286 ISAs between a US MNC and a local firm in emerging economies reveal that US MNCs forming ISAs requiring higher extent of technological commitments are more likely to select their prior partners. Equity-based governance structure is a substitutive mechanism of alliancing with prior partners for MNCs to address potential opportunisms in ISAs. We also find that US MNCs are more likely to select prior partners for ISAs when there is a larger institutional distance between the partners' countries of origin.

Suggested Citation

  • Li, Dan & Ferreira, Manuel Portugal, 2008. "Partner selection for international strategic alliances in emerging economies," Scandinavian Journal of Management, Elsevier, vol. 24(4), pages 308-319, December.
    • Handle: RePEc:eee:scaman:v:24:y:2008:i:4:p:308-319
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    Citations

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    Cited by:

    1. Meuleman, Miguel & Jääskeläinen, Mikko & Maula, Markku V.J. & Wright, Mike, 2017. "Venturing into the unknown with strangers: Substitutes of relational embeddedness in cross-border partner selection in venture capital syndicates," Journal of Business Venturing, Elsevier, vol. 32(2), pages 131-144.
    2. Capaldo, Antonio & Messeni Petruzzelli, Antonio, 2011. "In search of alliance-level relational capabilities: Balancing innovation value creation and appropriability in R&D alliances," Scandinavian Journal of Management, Elsevier, vol. 27(3), pages 273-286, September.
    3. Manuel Portugal Ferreira & José Eduardo Storopoli & Fernando Ribeiro Serra, 2014. "Two Decades of Research on Strategic Alliances: Analysis of Citations, Co-citations and Themes Researched," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 18(spe), pages 109-133.
    4. Chia Sun, 2014. "A conceptual framework for R&D strategic alliance assessment for Taiwan’s biotechnology industry," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(1), pages 259-279, January.
    5. Haiying Lin & Nicole Darnall, 2015. "Strategic Alliance Formation and Structural Configuration," Journal of Business Ethics, Springer, vol. 127(3), pages 549-564, March.
    6. Jha, Anand & Kim, YoungJun & Gutierrez-Wirsching, Sandra, 2019. "Formation of cross-border corporate strategic alliances: The roles of trust and cultural, institutional, and geographical distances," Journal of Behavioral and Experimental Finance, Elsevier, vol. 21(C), pages 22-38.
    7. Alfredo Jimenez & Jonas Holmqvist & Diego Jimenez, 2019. "Cross-Border Communication and Private Participation Projects: The Role of Genealogical Language Distance," Management International Review, Springer, vol. 59(6), pages 1009-1033, December.
    8. García-Canal, Esteban & Valdés-Llaneza, Ana & Sánchez-Lorda, Pablo, 2014. "Contractual form in repeated alliances with the same partner: The role of inter-organizational routines," Scandinavian Journal of Management, Elsevier, vol. 30(1), pages 51-64.
    9. Mia Hsiao-Wen Ho & Pervez N. Ghauri & Jorma A. Larimo, 2018. "Institutional distance and knowledge acquisition in international buyer-supplier relationships: The moderating role of trust," Asia Pacific Journal of Management, Springer, vol. 35(2), pages 427-447, June.
    10. Thorgren, Sara & Wincent, Joakim & Eriksson, Jessica, 2011. "Too small or too large to trust your partners in multipartner alliances? The role of effort in initiating generalized exchanges," Scandinavian Journal of Management, Elsevier, vol. 27(1), pages 99-112, March.
    11. S. Hossein Jalali, 2017. "Partner Capabilities and Alliance Time Frame: An Analysis of International Strategic Alliances from the CEE," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 13(2), pages 59-75.
    12. Manuela Gussoni, 2009. "The determinants of inter-firms R&D cooperation and partner selection. A literature overview," Discussion Papers 2009/86, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    13. Tamara Galkina, 2021. "International ECOpreneurship: Environmental commitment and international partner selection of Finnish firms from the energy sector," Journal of International Entrepreneurship, Springer, vol. 19(2), pages 300-320, June.

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