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The choice between joint ventures and non equity-alliances: evidence from Italian firms

Author

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  • Antonio Majocchi

    (Dipartimento di Ricerche Aziendali - University of Pavia)

  • Ulrike Mayrhofer

    () (Centre de Recherche Magellan - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - Institut d'Administration des Entreprises (IAE) - Lyon)

  • Joaquin Camps

    (Université de Valence - University of Valencia)

Abstract

This paper investigates the factors affecting the choice between joint ventures and non-equity alliances, when firms enter foreign markets. Using a database of Italian firms compiled by the authors with 879 observations, we test the possible effects of firm specific characteristics, host country institutional characteristics and cultural distance on alliance mode choice. Using both transaction cost analysis and the resource based view, our findings demonstrate the crucial role played by firm size and by institutional and political features of host countries. The results concerning the role of functional activities involved and the industrial sector are mixed. Overall, our analysis shows that it is necessary to develop a more integrated approach to understand this complex choice made by firms when expanding abroad.

Suggested Citation

  • Antonio Majocchi & Ulrike Mayrhofer & Joaquin Camps, 2010. "The choice between joint ventures and non equity-alliances: evidence from Italian firms," Post-Print halshs-00690216, HAL.
  • Handle: RePEc:hal:journl:halshs-00690216
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00690216
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