| Expanding the International Scope of the Firm: A Typology of Cooperative Strategies |
| | Garcia-Canal, Esteban | U. of Oviedo | egarcia@econo.uniovi.es | 34 98 5103693 |
| | Lopez-Duarte, Cristina | U. of Oviedo | clopez@econo.uniovi.es | 34-985-102810 |
| | Rialp-Criado, Josep | U. Autònoma de Barcelona | Josep.Rialp@uab.es | 34 93 581 22 70 |
| | Valdes Llaneza, Ana | U. of Oviedo | avaldes@econo.uniovi.es | 34 98 5103914 |
| | This paper analyzes the different cooperative strategies that a firm can use in its internationalization
process. Eleven longitudinal studies of cases of Spanish multinational firms were used as empirical
evidence. By analyzing the specific type of capacities pursued in alliances and their international scope,
we identified four cooperation strategies, discussing their advantages, inconveniences and appropriate
contractual form, as well as the dynamic considerations associated with said strategies. |
| | Keywords: International alliances; Cooperative strategies; International strategies |
| Strategic Alliance and Firm Value: A Case Study of the British Airways/USAir Alliance |
| | Park, Jong-Hun | City U. of Hong Kong | efpark@cityu.edu.hk | (852)-2788-8674 |
| | Zhang, Anming | City U. of Hong Kong | efanming@cityu.edu.hk | (852)-2788-7342 |
| | Park, Namgyoo K. | New York U. | npark@stern.nyu.edu | 212-998-0412 |
| | We examine the stock-market reactions of partner firms and rival firms to a series of events leading to the international allaince between British Airways and USAir. Using the event-study methodology, we find that abnormal returns to rival firms are negatively affected by the probability that the alliance would be consummated, while those to partner firms are positively influenced by that probability. We find some evidence of unbalanced benefit-sharing between the partners. We also find that closer rivals are more adversely affected by the alliance than are other rivals. Our findings suggest that international alliances would strengthen partner firms, which in turn hurts their rivals through increased
competition. |
| | Keywords: Impact on rival firms; International alliance; Degree of rivalry |
| Sharing International Joint Venturing Experience: An Empirical Study of Some Key Determinants |
| | Tsang, Eric W. K. | Nanyang Technological U. | awktsang@ntu.edu.sg | 65-790-5785 |
| | This paper proposes and tests a model of the factors affecting the sharing of international joint
venturing experience in a parent company. Based on the survey responses from 73 Singapore
companies with respect to their joint ventures set up in China, the results suggest that management
involvement and learning effort are the two main factors affecting experience sharing. This finding
lends support to the notion of learning-by-doing. These two factors are in turn mainly determined by
the strategic importance fo the joint venture concerned. Another major factor affecting experience
sharing is institutionalization of foreign direct investment (FDI) experience, which is influenced by
a company's size and amount of FDI experience. |
| | Keywords: International joint ventures; Experience sharing; Organizational learning |
| Distinct Institutions, Different Links: Supply Relations in the UK and Dutch Agro-Food Industry |
| | Rademakers, Martyn Franciscus | Erasmus U., Rotterdam | mrademakers@fac.fbk.eur.nl | +31 10 408 2384 |
| | In this paper the characteristics of supply relations in the Dutch and UK
agro-food industry are compared and contrasted with each other. Concepts
of the recent network literature are combined into a framework for cross-
national analyses with a focus on the content of inter-firm relations.
In addition, characteristics of inter-firm organization are linked with
the nature of three key social institutions: the government, the financial
system, cultural conventions about individualistic behavior. Based on this
framework, in-depth interviews were conducted at leading firms in the Dutch
and UK agro-food industry. The results show that, contrary to the Dutch
situation, spot-market relations are widespread in the UK. Dutch firms
apply a more cooperative approach in their supply relations. These
differences are explained by referring to the distinct nature of social
institutions in both countries. In the UK, the role of the state in the
agro-food industry shifted from ‘regulatory’ to ‘laissez faire’ while the
Dutch state has been facilitating in nature. In addition, the financial
system in the Netherlands is more credit-based than in the UK, while
individualistic behavior is less legitimate. As a result, Dutch agro-food
firms operate in a more stable environment than their counterparts in the
UK. The results of this study suggest that the behavior of internationally
operating firms is severely affected by nationally distinct institutional
environments. As a result, it is likely that firms in different countries
will display different organizational responses to similar strategic
challenges. |
| | Keywords: inter-firm relations; social institutions; cross-national analysis |