Equity Versus Non-Equity International Strategic Alliances: The Role of Host Country Governance

Steven Globerman, Bo Bernhard Nielsen

    Research output: Working paperResearch

    5 Downloads (Pure)

    Abstract

    A substantial literature has evolved focusing on the ownership structure of international strategic alliances (ISAs). Most of the relevant studies are theoretical in nature and concentrate on the conceptual factors that influence the choice between equity and non-equity structures. A smaller number of studies provide some empirical evidence on the importance of some of the conceptual factors. The theoretical literature highlights the potential influence of relational capital and transaction costs as determinants of ISA structure; however, there is little empirical evidence on the relative importance of these potential determinants. Moreover, there is only limited and indirect evidence bearing upon the impact of host country governance attributes on ISA ownership structure. In this study, we provide statistical evidence on the importance of potential determinants of governance mode choice for a sample of ISAs involving Danish firms. Our study documents how the determinants of governance mode choice vary in importance depending upon the "quality" of the governance infrastructure of the host country.
    Original languageEnglish
    Place of PublicationCopenhagen
    PublisherCenter for Strategic Management and Globalization
    Number of pages37
    ISBN (Print)8791815371
    Publication statusPublished - Dec 2006
    SeriesSMG Working Paper
    Number19/2006

    Keywords

    • Relational Capital
    • Governance
    • International Strategic Alliance

    Cite this

    Globerman, S., & Nielsen, B. B. (2006). Equity Versus Non-Equity International Strategic Alliances: The Role of Host Country Governance. Center for Strategic Management and Globalization. SMG Working Paper, No. 19/2006