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Country-governance quality and signals in the alliance formation process: a meta-analytic approach

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  • Oliver Rossmannek
  • Felix Bosch
  • Katharina Fink

Abstract

This meta-analysis examines how signals in the alliance formation process affect alliance network centrality. In the hypotheses, it is argued that the age of a firm and its technical capital help to increase its attractiveness and therefore its centrality. However, the value of signals in the alliance formation process is dependent on the quality of a firm's home country-governance (e.g., level of property protection or degree of corruption). The age of a firm represents a signal of trust, which is more important in countries with a low governance quality. In contrast, the technical capital of a firm signals an attractive resource endowment, which is more important in high governance countries. Overall, hypotheses are supported (in a meta-analysis of 85 independent studies). The study contributes to the literature by showing how home country institutions have severe effects on alliance strategies and the behaviour of multinational firms.

Suggested Citation

  • Oliver Rossmannek & Felix Bosch & Katharina Fink, 2022. "Country-governance quality and signals in the alliance formation process: a meta-analytic approach," International Journal of Business Environment, Inderscience Enterprises Ltd, vol. 13(1), pages 60-87.
  • Handle: RePEc:ids:ijbenv:v:13:y:2022:i:1:p:60-87
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