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The effect of strategic alliances on firm productivity in South Korea

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  • Minjung Kim

Abstract

Using a rich firm-level data set from South Korea, this article analyses the impact of strategic alliances on firm performance, focusing on how firm productivity is affected by alliance types such as joint venture, joint technical development, technical alliance, joint marketing and coproduction as well as alliance structures such as intra- and inter-industry alliances. Total factor productivity (TFP) is estimated through the semi-parametric method suggested by Levinsohn and Petrin (2003). In addition, a two-stage least-squares (2SLS) method is applied to reduce the potential endogenous problem between productivity and strategic alliance choices. The empirical results found in this article indicate that the engagement in joint ventures positively affects firm productivity and that the formation of international intra-industry alliances has a positive impact on firm productivity.

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  • Minjung Kim, 2015. "The effect of strategic alliances on firm productivity in South Korea," Applied Economics, Taylor & Francis Journals, vol. 47(47), pages 5034-5044, October.
    • Handle: RePEc:taf:applec:v:47:y:2015:i:47:p:5034-5044
    DOI: 10.1080/00036846.2015.1042140
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    Cited by:

    1. Victor Chukwunweike Nwokocha & Ignatius Ani Madu, 2020. "Strategic Alliance and Its Influence on the Performance of Small- and Medium-scale Enterprises in Enugu State, Nigeria," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 12(2), pages 199-216, May.
    2. Victor Chukwunweike Nwokocha & Ogochukwu Christiana Anyanwu & Ignatius Ani Madu & Christopher Emmanuel Nwankwo, 2021. "COVID-19 Pandemic and Small-Scale Industries in a Local Geographic Space of Nigeria: An Assessment of the Impact of Strategic Interfirm Alliance," SAGE Open, , vol. 11(2), pages 21582440211, June.
    3. Devicienti, Francesco & Grinza, Elena & Manello, Alessandro & Vannoni, Davide, 2022. "Employer Cooperation, Productivity, and Wages: New Evidence from Inter-Firm Formal Network Agreements," IZA Discussion Papers 15617, Institute of Labor Economics (IZA).

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