| Interdependence, cultural congruence, and social connectedness between alliance partners: The determinants of global strategic alliance survival |
| | Chan, Christine M. | Chinese U. of Hong Kong | mkchan@baf.msmail.cuhk.edu.hk | (852)-2609-7795 |
| | Makino, Shige | Chinese U. of Hong Kong | makino@baf.msmail.cuhk.edu.hk | (852)-2609-7636 |
| | This study examined the three key determinants of global strategic alliance
survival. Global strategic alliances have suffered from high termination
rate which has drawn researchers' attention to unveil the alliance survival
phenomena. However, the research on why some global strategic alliances
survive longer than others remains fragmented. The lack of the systematic
accumulation of past research efforts calls for the need of integrative and
theoretical framework for the analysis of global strategic alliance survival.
In response to this call, this study developed the integrative model that
incorporated the strategic, cultural, and social aspects of global strategic
alliance survival; and empirically examined the impact of the three key
survival determinants (i.e., interdependence from the strategic aspect,
cultural congruence from the cultural aspect, and social connectedness
between alliance partners from the social aspect) on the survival of global
strategic alliances. Event history analysis was used to test the hypotheses
in a sample of 487 manufacturing global strategic alliances which involved
one or more Japanese firms in Asia, North America, and Europe. The results
showed that interdependence had more pivotal effects on the global strategic
alliance survival than the cultural congruence and social connectedness
between alliance partners. Finally, the findings provided several suggestions
for future theory development and managerial implications for strategic
decision making. |
| | Keywords: global strategic alliance; alliance survival; Japanese FDI |
| The Impact of the Traits of Local Partner Firms on International Joint Venture's Performance: The Analysis of 117 IJVs in South Korea |
| | Cho , Dong-Sung | Seoul National U. | cho@ips.or.kr | (82-2)880-6945 , 456-5588(590) |
| | Cho, Hyeon-Deog | Seoul National U. | Hyeon@ips.or.kr | (82-2)880-6955 |
| | Abstract
Multinational corporations (MNCs) have turned increasingly to the use of international joint ventures (IJVs) as a means of foreign investment
and the same trend can be seen in foreign investments in South Korea. However, despite many studies on IJVs, few have investigated IJV
performance with a focus on the traits of local partner firms. With 117 IJVs in South Korea , this study used secondary data to analyse how
the traits of local partner firms affect the management success of IJVs. As a result of dividing the traits of a local partner firm into traits of
manager, management resources, environment selection mechanism, learning mechanism, product relatedness and equity and analysing their
relationship with ROA and ROS of IJV, we found a significant relatedness with the debt to equity ratio, market power, degree of education and
training, product relatedness and equity of a local partner firm.
|
| | Keywords: International Joint Venture ; Traits of Local Partner Firm; Performance of IJV |
| Building a foreign sales base: The roles of capabilities and alliances for entrepreneurial and established semiconductor firms |
| | Leiblein, Michael J. | Ohio State U., Columbus | leiblein.1@osu.edu | (614) 292-0071 |
| | Reuer, Jeffrey J. | INSEAD | jeffrey.reuer@insead.fr | 33 1 60 72 44 73 |
| | This study examines how technological capabilities and international collaborative linkages together shape entrepreneurial and established
firms' abilities to build a foreign sales base in a highly-competitive, global industry. The analysis extends prior research on international
strategy and alliances by providing direct empirical tests of the joint and interactive effects of firm capabilities and international collaboration
on the foreign market penetration of semiconductor firms. The study also investigates how technological capabilities and cross-border
alliances play different roles for large, established firms and smaller rivals attempting to build foreign sales. The empirical evidence indicates
that both technological capabilities and international collaboration aid firms' development of foreign sales, yet the effects differ across small
and large competitors. |
| | Keywords: alliances; strategy; entrepreneurship |
| Cultural distance and joint ventures |
| | Kaufmann, Jeffrey B. | U. of Illinois, Urbana-Champaign | jkaufmnn@uiuc.edu | (507) 280-6741 |
| | O'Neill, Hugh M. | U. of North Carolina, Chapel Hill | hugh_oneill@unc.edu | (919) 962-3164 |
| | Theoretical examinations of the relationship between cultural distance and the
termination of joint ventures have been clear and consistent. Cultural distance increases the
problems associated with inter-partner communications and coordination. These increased
difficulties, in turn, should increase the probability that an alliance will terminate. Yet the
empirical studies of the relationship between cultural distance and joint venture termination
offer significant but mixed results. Park and Ungson (1997) found a significant but negative
relationship beteen cultural distance and the probability of termination while a significant but
opposite effect was found by Barkema, Shenkar, Vermeulen, and Bell (1997).
The current study examines the relationship between cultural distance and joint ventures
from the perspective that managers understand the problems associated with these alliances and
approach cooperation with culturally distant partners differently. Results support this
perspective. First, cultural distance is found to lower the probability that an alliance will
terminate. In exploring the role played by cultural distance in more depth, it appears that
managers enter into fundamentally different types of joint ventures with culturally distant
partners than with culturally similar ones. In addition, it appears that culturally distant partners
are less likely to include certain contractual provisions designed to overcome problems with
partner communicatin and the non-use of proprietary information devoted to the alliance.
Finally, the relationship between cultural distance and the division of management between the
partners is non-significant. |
| | Keywords: national culture; joint venture; termination |