Equity Versus Non-Equity International Strategic Alliances

The Role of Host Country Governance

Steven Globerman, Bo Bernhard Nielsen

    Research output: Working paperResearch

    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
    PublisherDjøf Forlag
    Number of pages43
    ISBN (Print)8791815371
    Publication statusPublished - 2006

    Keywords

    • Relational Capital
    • Governance
    • International Strategic Alliance

    Cite this

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    Equity Versus Non-Equity International Strategic Alliances : The Role of Host Country Governance. / Globerman, Steven; Nielsen, Bo Bernhard.

    Copenhagen : Djøf Forlag, 2006.

    Research output: Working paperResearch

    TY - UNPB

    T1 - Equity Versus Non-Equity International Strategic Alliances

    T2 - The Role of Host Country Governance

    AU - Globerman, Steven

    AU - Nielsen, Bo Bernhard

    PY - 2006

    Y1 - 2006

    N2 - 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.

    AB - 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.

    KW - Virksomhed&politik

    KW - Relational Capital

    KW - Governance

    KW - International Strategic Alliance

    M3 - Working paper

    SN - 8791815371

    BT - Equity Versus Non-Equity International Strategic Alliances

    PB - Djøf Forlag

    CY - Copenhagen

    ER -