IDEAS home Printed from https://ideas.repec.org/p/cap/mpaper/012008.html
   My bibliography  Save this paper

THE USE of CONSORTIA for the INTERNATIONALIZATION of FIRMS – MOTA-ENGIL CASE STUDY

Author

Listed:
  • Maria João Sousa

    (Faculdade de Economia e Gestão, Universidade Católica Portuguesa - Porto)

  • Susana Costa e Silva

    (Faculdade de Economia e Gestão, Universidade Católica Portuguesa - Porto)

Abstract

Internationalization has been widely studied throughout the years. Broadly, it has been predicted as irrevocable and having increasing impact on firm-related strategy. Within entry modes, consortium, has not received as much attention as others. Hence, it seems important to understand how this specific entry mode allows the entrance of firms in the international markets. This study intends to answer the question of “how” to internationalize, anticipating the consortium as the most feasible way for construction firms to enter certain markets. The reasons that determine its choice concern the specificness of the projects, markets and of the firm. In the first part of the study, we review the existent literature on consortia as an entry mode and as a tool of internationalization used by construction firms. Through this review we build a framework that reveals the motivations that lead to this choice. In the second part, we present the case study of Mota-Engil, as a potential source of valuable information which may contribute to the understanding of the phenomenon under study. This case study corroborates the motivations found to create consortia. The paper closes with its contributions, limitations and suggestions for future researches.

Suggested Citation

  • Maria João Sousa & Susana Costa e Silva, 2008. "THE USE of CONSORTIA for the INTERNATIONALIZATION of FIRMS – MOTA-ENGIL CASE STUDY," Working Papers de Gestão (Management Working Papers) 012008, Católica Porto Business School, Universidade Católica Portuguesa.
    • Handle: RePEc:cap:mpaper:012008
    as

    Download full text from publisher

    File URL: http://www.feg.porto.ucp.pt/docentes/repec/WP/012008%20-%20Sousa%20e%20Silva%20-%20THE%20USE%20OF%20CONSORTIA%20FOR%20THE%20INTERNATIONALIZATION%20OF%20FIRMS.pdf
    File Function: First version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bruce Kogut, 1988. "Joint ventures: Theoretical and empirical perspectives," Strategic Management Journal, Wiley Blackwell, vol. 9(4), pages 319-332, July.
    2. Erin Anderson & Hubert Gatignon, 1986. "Modes of Foreign Entry: A Transaction Cost Analysis and Propositions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 17(3), pages 1-26, September.
    3. Florence Yean Yng Ling & C. William Ibbs & Javier Cuervo, 2005. "Entry and business strategies used by international architectural, engineering and construction firms in China," Construction Management and Economics, Taylor & Francis Journals, vol. 23(5), pages 509-520.
    4. Narula, R. & Dunning, J. H., 1998. "Explaining international R&D alliances and the role of governments," International Business Review, Elsevier, vol. 7(4), pages 377-397, August.
    5. 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.
    6. M Krishna Erramilli & Sanjeev Agarwal & Chekitan S Dev, 2002. "Choice Between Non-Equity Entry Modes: An Organizational Capability Perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(2), pages 223-242, June.
    7. 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.
    8. Bruce Kogut, 1991. "Joint Ventures and the Option to Expand and Acquire," Management Science, INFORMS, vol. 37(1), pages 19-33, January.
    9. T. K. Das & Bing‐Sheng Teng, 1996. "Risk Types And Inter‐Firm Alliance Structures," Journal of Management Studies, Wiley Blackwell, vol. 33(6), pages 827-843, November.
    10. Jean-François Hennart, 1991. "The Transaction Costs Theory of Joint Ventures: An Empirical Study of Japanese Subsidiaries in the United States," Management Science, INFORMS, vol. 37(4), pages 483-497, April.
    11. Paul W Beamish & John C Banks, 1987. "Equity Joint Ventures and Theory of the Multinational Enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 18(2), pages 1-16, June.
    12. Paul Whitla & Peter Walters & Howard Davies, 2006. "The use of global strategies by British construction firms," Construction Management and Economics, Taylor & Francis Journals, vol. 24(9), pages 945-954.
    13. Su, Han Chan & Kensinger, John W. & Keown, Arthur J. & Martin, John D., 1997. "Do strategic alliances create value?," Journal of Financial Economics, Elsevier, vol. 46(2), pages 199-221, November.
    14. Rajesh Kumar & Kofi O. Nti, 1998. "Differential Learning and Interaction in Alliance Dynamics: A Process and Outcome Discrepancy Model," Organization Science, INFORMS, vol. 9(3), pages 356-367, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael Nippa & Jeffrey J Reuer, 2019. "On the future of international joint venture research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 555-597, June.
    2. Cuypers, I.R.P., 2009. "Essays on equity joint ventures, uncertainty and experience," Other publications TiSEM 8dc79e86-c625-467f-a450-8, Tilburg University, School of Economics and Management.
    3. Cunha, P.A.M.F.V., 2005. "The value of cooperation : Studies on the performance outcomes of interorganizational alliances," Other publications TiSEM 59466e6c-1920-461e-b5e9-b, Tilburg University, School of Economics and Management.
    4. Manuel Portugal Ferreira & Cláudia Frias Pinto & Fernando Ribeiro Serra, 2014. "The transaction costs theory in international business research: a bibliometric study over three decades," Scientometrics, Springer;Akadémiai Kiadó, vol. 98(3), pages 1899-1922, March.
    5. Koo, JaSeung & Yamanoi, Junichi & Sakano, Tomoaki, 2020. "Acquisition announcements and stock market valuations of acquiring firms’ alliance partners: A transaction cost perspective," Journal of Business Research, Elsevier, vol. 118(C), pages 129-140.
    6. Stienstra, Miranda, 2020. "The determinants and performance implications of alliance partner acquisition," Other publications TiSEM 7fdee0c2-d4d2-4f5b-95e3-2, Tilburg University, School of Economics and Management.
    7. Hanvanich, Sangphet & Çavusgil, S. Tamer, 2001. "Stock market reactions to international joint venture announcement: an event analysis," International Business Review, Elsevier, vol. 10(2), pages 139-154, April.
    8. Reuer, Jeffrey J. & Ariño, Africa, 2000. "Governance changes in strategic alliances: Antecedents of contractual renegotiations," IESE Research Papers D/415, IESE Business School.
    9. Canabal, Anne & White III, George O., 2008. "Entry mode research: Past and future," International Business Review, Elsevier, vol. 17(3), pages 267-284, June.
    10. Ortiz-de-Urbina-Criado, Marta & Montoro-Sánchez, Ángeles & Mora-Valentín, Eva-María, 2014. "Impact of growth strategy on mode of governance in alliances," International Business Review, Elsevier, vol. 23(4), pages 838-848.
    11. Ming-Chang Huang & Ya-Ping Chiu, 2014. "The antecedents and outcome of control in IJVs: A control gap framework," Asia Pacific Journal of Management, Springer, vol. 31(1), pages 245-269, March.
    12. Timothy B. Folta & Walter J. Ferrier, 1997. "International Expansion Through Sequential Investment: The Effects Of National Culture On Buyouts And Dissolutions In Biotechnology Partnerships," Game Theory and Information 9701001, University Library of Munich, Germany.
    13. Chris Changwha Chung & Paul W. Beamish, 2010. "The Trap of Continual Ownership Change in International Equity Joint Ventures," Organization Science, INFORMS, vol. 21(5), pages 995-1015, October.
    14. Li, Peng-Yu & Meyer, Klaus E., 2009. "Contextualizing experience effects in international business: A study of ownership strategies," Journal of World Business, Elsevier, vol. 44(4), pages 370-382, October.
    15. Lu, Jane W. & Hebert, Louis, 2005. "Equity control and the survival of international joint ventures: a contingency approach," Journal of Business Research, Elsevier, vol. 58(6), pages 736-745, June.
    16. Taco H. Reus & Daniel Rottig, 2009. "Meta-analyses of International Joint Venture Performance Determinants," Management International Review, Springer, vol. 49(5), pages 607-640, October.
    17. Banerji, Kunal & Sambharya, Rakesh B., 1998. "Effect of network organization on alliance formation: A study of the Japanese automobile ancillary industry," Journal of International Management, Elsevier, vol. 4(1), pages 41-57, July.
    18. Lukas, Elmar, 2013. "Modeling the transitional dynamics of international joint venture policies: An option pricing approach," International Review of Economics & Finance, Elsevier, vol. 27(C), pages 21-36.
    19. Bell, J.H.J., 1996. "Joint or Single Venturing? : An Electric Approach to Foreign Entry Mode Choice," Other publications TiSEM 06f84735-3cf5-432f-8bc8-c, Tilburg University, School of Economics and Management.
    20. Hu, Michael Y. & Chen, Haiyang, 1996. "An empirical analysis of factors explaining foreign joint venture performance in China," Journal of Business Research, Elsevier, vol. 35(2), pages 165-173, February.

    More about this item

    Keywords

    consortia; internationalization; cooperation; construction;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:cap:mpaper:012008. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ricardo Goncalves (email available below). General contact details of provider: https://edirc.repec.org/data/feucppt.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.