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Reciprocity in International Business: A Study of Telecommunications Alliances and Contracts

Author

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  • Roger J Kashlak

    (Loyola College in Maryland)

  • Rajan Chandran

    (Temple University)

  • C Anthony Di Benedetto

    (Temple University)

Abstract

Reciprocity has been identified as a “messy” concept to study within international cooperative ventures. Theoretically grounded in international cooperation, transaction cost theory and economic anthropology, reciprocity is operationalized and explored in this study. Specifically, the effects of cultural distance, economic nearness, country-level risk and governance mechanisms are analyzed in relationship to three distinct measures of reciprocity. The international long distance industry provides the research setting. During the 1980s and 1990s, as this industry has become more competitive within the United States, foreign partners have been slow to reciprocate regarding the sharing of revenues derived from increased overseas calling. To study reciprocity between U.S. international long distance carriers and their partnering foreign entities, a pooled time-series/cross-sectional technique is used. 11 years of contractual arrangements between the U.S. firms and the telecom administrations of 109 countries are analyzed. Governance mechanisms test as highly significant with all measures of reciprocity, while the other independent variables exhibit varying degrees of significance with the respective dependent measures.© 1998 JIBS. Journal of International Business Studies (1998) 29, 281–304

Suggested Citation

  • Roger J Kashlak & Rajan Chandran & C Anthony Di Benedetto, 1998. "Reciprocity in International Business: A Study of Telecommunications Alliances and Contracts," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(2), pages 281-304, June.
    • Handle: RePEc:pal:jintbs:v:29:y:1998:i:2:p:281-304
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    Citations

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    Cited by:

    1. Kashlak, Roger, 1998. "Establishing financial targets for joint ventures in emerging countries: A conceptual model," Journal of International Management, Elsevier, vol. 4(3), pages 241-258, November.
    2. Boddewyn, Jean J. & Peng, Mike W., 2021. "Reciprocity and informal institutions in international market entry," Journal of World Business, Elsevier, vol. 56(1).
    3. Bruyaka, Olga & Prange, Christiane, 2020. "International cultural ambidexterity: Balancing tensions of foreign market entry into distant and proximate cultures," Journal of Business Research, Elsevier, vol. 118(C), pages 491-506.
    4. Yeheskel, Orly & Zeira, Yoram & Shenkar, Oded & Newburry, William, 2001. "Parent company dissimilarity and equity international joint venture effectiveness," Journal of International Management, Elsevier, vol. 7(2), pages 81-104.
    5. Hwy-Chang Moon & Yan-Ling Yu, 2004. "The competitiveness of China's telecommunications industry before and after China's accession to the WTO," Global Economic Review, Taylor & Francis Journals, vol. 33(2), pages 79-98.
    6. van Wijk, R.A.J.L. & van den Bosch, F.A.J. & Volberda, H.W. & Heinhuis, S.M., 2005. "Reciprocity of Knowledge Flows in Internal Network Forms of Organizing," ERIM Report Series Research in Management ERS-2005-024-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.

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