Negotiating alliances in emerging markets?Do partners' contributions matter (original) (raw)
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Partner selection for international strategic alliances in emerging economies
Scandinavian Journal of Management, 2008
Repeated partnerships in international strategic alliances (ISAs) should mitigate the effects of an under-established institutional framework, lower transaction costs, and create the conditions for the exploitation of firm-specific capabilities by multinational corporations (MNCs). However, to the best of our knowledge, no research has investigated MNCs' preference about prior partners for ISA projects in emerging economies. This is surprising, given the high risks characterizing ISAs and the potential for reducing transactional hazards by engaging repeatedly with the same partner. Our analyses of 286 ISAs between a US MNC and a local firm in emerging economies reveal that US MNCs forming ISAs requiring higher extent of technological commitments are more likely to select their prior partners. Equity-based governance structure is a substitutive mechanism of alliancing with prior partners for MNCs to address potential opportunisms in ISAs. We also find that US MNCs are more likely to select prior partners for ISAs when there is a larger institutional distance between the partners' countries of origin.
Negotiating international strategic alliances: success and failures - some closing thoughts
European J. of International Management, 2019
This special thematic issue of the European Journal of International Management focuses on the analysis of case examples of negotiation processes of strategic alliances. This thematic issue applies a multi-lens approach in which a range of theories and models are selectively applied to specific cases to gain better insight into the business case, the development of the negotiations and to identify lessons for future negotiators of strategic alliances. Negotiation theory is applied to concrete M&A as negotiations as well as to other forms of negotiations of strategic alliances, for instance between governments, between private sector companies and cross-sectoral alliance negotiations between private sector actors and other actors such as governments. Special attention has been paid to analysis of business diplomacy and trust development.
SSRN Electronic Journal, 2000
We examine the relative bargaining power in alliances between small-and medium-sized enterprises (SMEs) from emerging economies and multinationals from developed markets. Our work highlights the importance of founders' personal ties, network positions, and the processes their firms use to manage resources. Specifically, we evaluate how SME founders' ties with local government officials and business managers may serve as the conduit for value creation and SMEs' bargaining power over foreign multinational partners. Further, this work explores the importance of resource management processes (bundling and synchronization) to enhance the value of personal ties. In doing so, we offer theory to demonstrate that SMEs' bargaining power in strategic alliances is a function of the social relationships and resource management processes that underlie and shape the firms' competitiveness and capabilities in emerging economies.
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This study examines the influence tactics of senior U.S. executives in negotiating international business alliances. The strategy literature on alliances and the behavioral literature on negotiations were incorporated into a behavioral model of alliance negotiations. Constructs identified from transaction cost, power dependence and game theories were integrated and linked to hypotheses describing negotiators' influence tactics in alliance negotiations. In examining eighty-three alliance negotiations, negotiator trust, perception of a partner firm's alternatives, conflict frame, time horizon, and cultural distance were found to affect negotiators' tactics.
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The growth of alliances in developing countries has generated significant interest among scholars. Forming alliance is a reliable solution for companies based in developing countries to gain an advantage in international markets. Most of the previous studies present generic models or sets of characteristics for partner selection. In contrast, the current study suggests the partner characteristics which alliances' leaders should care about to be financially prosperous in international markets. Grounded in the resource-based view and review of recent studies, the theoretical framework of partner characteristics consisted of 13 variables. The data was gathered from Iranian alliances and analyses were done through the principal component and multiple regression analyses. The findings stress the importance of cognitive capability and knowledge stock as the most effective partner characteristics in export performance of alliances. Specifically, results introduce a framework that addresses why managers select partners with certain, specific characteristics to improve the export performance of alliances.
2011
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Managing Instability in Cross-Cultural Alliances
Cross-cultural alliances and the global reach that they can offer would appear to be the strategic answer to companies' international ambitions. Yet many alliances are doomed to failure because of tensions between the partners. This paper takes a case study approach to explore why instability can emerge in cross-cultural ventures. The examples involve two Japanese joint ventures with local partners in the UK and in Malaysia. The authors find that key factors affecting stability are trust, conflict and dependence. The relative importance of these factors varies according to partner nationality: the main driver for joint venture stability for the Japanese is trust; for the British it is dependence; while in the Chinese Malaysian's case both trust and dependence are important. k