How do international joint ventures create shareholder value?

This study attempts to identify conditions under which announcements of international joint venture (JV) formation lead to increases in shareholder value of participating U.S. firms. It does so by combining the singular theoretical foci of previous work on the topic and specifying previously unconsidered, but conceptually important, influences on firms' expected JV performance. The study's findings indicate support for the hypothesized effect of variables in partners' task‐related, competitive, and structural context(s), but not those in these firms' partner‐related and institutional context(s). Specifically, partner–venture business relatedness, the pursuit of R&D‐oriented activity, greater equity ownership, and large firm size, all are found to have a positive impact on firms' JV‐based value creation. Although this study finds support for the performance impact of firm‐level competition, the direction of this impact is contrary to that hypothesized. No support is found for hypothesized effect of partner–partner business relatedness, previous JV experience, partners' relative firm size, (national) cultural relatedness, and JV host country political risk. Copyright © 2000 John Wiley & Sons, Ltd.     

“The more,the merrier” or “less is more”? How the number of issues addressed in B2B sales negotiations affects dyadic and seller economic outcomes

With a mixed-methods approach, this study analyzes how varying the number of issues in business-to-business (B2B) sales negotiations affects negotiation processes and outcomes. A qualitative interview study with B2B negotiators (N = 46) reveals that more issues increase complexity but offer more possibilities for concessions. Sellers see benefits in increasing the number of issues addressed, whereas buyers are ambiguous about whether negotiating more issues will benefit their economic outcomes. A second experimental study (N = 97 dyads) tests whether negotiating a different number of issues (four, eight, or between four and eight) produces different absolute and relative dyadic economic outcomes and sellers' shares of the joint profits in one-on-one negotiations. In absolute terms, more negotiation issues produce larger negotiation pies; fewer issues facilitate more accurate information processing, leading to relatively more integrative agreements. For sellers, increasing the number of issues increases their share of the joint profit, because buyers are more willing to concede on the overall price of the deal.     

Inflation Uncertainty and Strike Activity

In this paper, we hypothesize that the general level of uncertainty can influence the level of strike activity. We test this hypothesis by considering the impact of inflation uncertain & on strike activity. Two databases are used: a pooled time-series cross-section sample of individual negotiations over the period 1971–1980, and quarterly data on negotiations from 1954 to 1980. Results from both data sets support the proposition that inflation uncertainty influences strike activity.     

Using experiments to compare the predictive power of models of multilateral negotiations

We conduct unstructured negotiations in a laboratory experiment designed to empirically assess the predictive power of models of the multilateral negotiations observed in diverse strategic settings. For concreteness we consider two sellers negotiating with a buyer who wants to make only one trade, and we categorize the models by whether introducing a second seller to bilateral negotiations always, never, or sometimes increases the buyer's payoff. Our experiment features two scenarios within which the three categories of models have observationally distinct predictions: a differentiated scenario with one high-surplus seller and one low-surplus seller, and a homogeneous scenario with identical high-surplus sellers. In both scenarios the buyer tends to trade with a high-surplus seller at terms indistinguishable from those in bilateral negotiations with a high-surplus seller, meaning that introducing a competing seller does not substantially affect the observed terms of trade. Our findings match the predictions from models in the never-matters category, supporting their use when modeling multilateral negotiations.     

Bargaining Structure and Wage Outcomes in the British Coal Industry

The arguments below use case study and time series data to investigate the relationship between bargaining structure and wage settlements in the British coal industry. Consideration of the different bargaining structures in this industry suggests that bargaining power and wage outcomes are very sensitive to market conditions when the negotiating structure is decentralized; when negotiations are centralized in industry-wide bargaining, power and wage outcomes are quite insensitive to market conditions. These conclusions may help in understanding recent events in this industry and perhaps can be generalized to other cases where bargaining structures are undergoing change.     

Resource complementarity and international joint venture performance in Korea

The resource-based view of joint ventures (JVs) posits that JV performance is driven by JV partners’ ability to create synergy by joining complementary resources. We examine the synergy generated from resource complementarity in the context of JVs formed between developed market firms and local Korean firms. Besides the independent effects of both partners’ complementary resources on JV performance, we examined whether a joint effect on JV performance existed. We found that both technology-related resources and local knowledge-related resources affect JV performance independently and simultaneously. The impact of local knowledge-related resources on JV performance increased with the level of technology-related resources, and the impact of technology-related resources on JV performance increased with the level of local knowledge-related resources. Technology- and local knowledge-related resources are thus not simply additive; mutually enhancing synergies exist between the two resources. This finding further suggests that the synergistic effect of both partners’ complementary resources on JV performance can be substantive.     

关于中俄天然气合作的冷思考

2011年6月,中俄天然气合作协议未能预期签署,谈判再度陷入僵局。从表面看,主要障碍是双方的报价差异过大。其实,在价格背后包含着双方对市场认识、经济效益预期、天然气价格机制等多方面深层次的不同认知。消除中俄天然气谈判受阻因素,中国至少需要在以下四个方面做更多的工作：明确天然气的利用政策;推进天然气价格市场化改革;加快天然气分销渠道建设;规范并实施LNG集中采购。同时,作为中国天然气市场的未来供应者,俄罗斯应从更长期的中国天然气市场发展和世界天然气市场发展格局中把握对策和战略。由于中俄双方已经具备开展天然气合作的政治基础和经济基础,达成最终协议将仅仅是时间问题。     

Cross-cultural influences on the buyer-seller interaction/negotiation process

Even though the buyer-seller interaction/negotiation process is receiving increasing attention from the marketing scholars (Capon & Hulbert, 1976; O'Shaughnessy, 1972; Sheth, 1976; Wilson, 1976; Woodside, Bennett & Sheth, 1977), there is virtually nothing in the literature on the influence of the cross-cultural and cross-national settings in which negotiations take place. Yet, we must reckon with the cross-cultural influences on the buyer-seller interaction/negotiation process simply because a vast number of marketing transactions transcend national and cultural boundaries. In other words, multinational and transnational marketing has emerged as a way of life and transactions between buyers of one country/culture and sellers of another country/culture are commonplace. The purposes of this paper are, therefore, to discuss the cross-cultural influences on the buyer-seller interaction process and to provide a conceptual framework which may become useful for empirical research.     

From hybrids to hierarchies: shareholder wealth effects of joint venture partner buyouts

This study examines the parent firm performance implications of joint venture (JV) partner buyouts, which involve the conversion of a hybrid governance structure to an internal unit within the firm's hierarchy. Transaction cost theory, as developed and applied in the international literature and market entry research, is extended to the post‐entry investment setting to isolate sources of value creation or dissipation from the governance changes effected by JV partner buyouts. The evidence complements recent research on JV longevity and its determinants. Copyright © 2001 John Wiley & Sons, Ltd.     

The Role of Arbitrator Uncertainty in Negotiation Impasses

This article utilizes a unique data set to explore whether uncertainty about arbitration influences the likelihood that negotiators will use it. We use experimental data on decisions made by arbitrators in hypothetical scenarios to calculate a measure of uncertainty for each arbitrator. These data are matched to field data on contract negotiations involving this same set of arbitrators. We find that the greater the uncertainty about the arbitrator, the lower the probability of impasse.     

Joint venture stability and cooperation: Direct, indirect and contingent effects of resource complementarity and trust

Despite the increased use of JVs and other forms of alliances, research shows that most collaborative arrangements end in failure due to relationship and resource sharing problems. We note that extant research and practice in this area has tended to emphasize structural and partner selection issues, often at the expense of the relationship and resource development processes which promote ongoing stability and cooperation. This paper presents a view of JV formation and success grounded in the Resource-Advantage (R-A) theory of competition. Our results illustrated the distinct effects of resource complementarity and trust upon JV stability and cooperation. Further, we found that trust was most influential in newer JVs, while the presence of resource complementarity was more critical in older ventures. For firms with greater (less) JV experience, resource complementarity (trust) between the partners was more critical for attaining JV outcomes.     

Cohort Size Effects on the Wages of Young Men in Britain, 1961-1989

This paper investigates the relationship between the pay of young men relative to adult men and the size of the youth cohort. The evidence presented indicates that during the post-war period, relative hourly earnings and relative union negotiated wage rates were both negatively influenced by the size of the youth cohort. This fact indicates that the relative availability of young workers influences their rates of pay even if these are the outcome of union negotiations.     

WTO negotiations on agriculture and the distributional impacts for US rice farm households

The policies of wealthy countries have proven the most difficult to reform in the WTO Doha Round negotiations. Considerable emphasis has been placed on developing country impacts, but a gap in the literature remains on the stakes for rich country farmers despite the large role these countries play in global agricultural protection. The research here considers the particular case of US rice households and their sensitivity to Japanese market access reform. Using an applied general equilibrium model with multiple farm households we highlight the distributional impacts among these producers. We argue that concessions to Japan on market access make domestic reforms in rice a difficult political sale in the US since the wealthiest producers bear the largest losses. Improving our understanding of the distributional impacts and political realities of the richest countries is critical to informing the negotiating process because the gains to the world’s poor can only be realized with creative policy redress in these rich nations.     

Trade Union Concentration and the Determination of Wages: The Case of Teachers in England and Wales

Multi-unionism is a common feature of the industrial relations scene, yet to date there has been relatively little economic analysis of its effects, in particular on the outcome of wage negotiations. In this paper, we examine the impact of multi-unionism—specifically, the degree of union membership concentration—on the determination of the relative pay of a particular occupational group, namely that of schoolteachers in England and Wales. We measure teacher trade union concentration using the Herfindahl index of concentration, and find that, after controlling for other possible influences, changes in the value of this index have a positive impact on schoolteachers' relative pay. In addition, we find union membership concentration to be a better indicator of 'union pushfulness' effects in wage determination than the traditional measure, union density. These findings are potentially of wider significance for the analysis of wage determination in multi-union environments.     

中国存款准备金政策的现状及影响研究

对中国存款准备金的现状进行了梳理,将重点放在分析中国准备金政策的实施背景与影响两方面：通过分析我国目前的货币环境,对比相应政策工具的优缺点来说明近几年我国变动准备金率的原因;通过建立回归模型来分析准备金政策对市场利率的影响;通过建立VAR模型,分析法定准备金率的变动对货币供给、贷款以及超储率的影响。进而提出对于准备金政策合理实施的几点建议。     

Are joint ventures positive sum games? The relative effects of cooperative and noncooperative behavior

Are joint ventures (JVs) characterized mainly by cooperative behavior or noncooperative behavior? In this research, we address this question by examining the interrelationship between the values created for two partners when they announce a JV. We argue that, on average, if cooperative behavior and common benefits are more influential than noncooperative behavior and private benefits, there will be a positive association between the values created for the two partners. Conversely, if private benefits and noncooperative behavior are more influential, there will be a negative association as partners derive value at the expense of each other rather than by creating new opportunities through the JV. Using a sample of 344 JVs we find evidence of a positive association between the values created for the two partners after controlling for various factors. This suggests that the stock market perceives JVs to be positive sum games rather than zero sum games, and that value creation in JVs is mainly attributable to synergies rather than appropriation of resources. Our analysis also reveals other conditions under which cooperative behavior and noncooperative behavior become dominant, such as the strength of the resources of the two partners, product market competition, and JV experience. Copyright © 2010 John Wiley & Sons, Ltd.     

The design of coordination and control mechanisms for managing joint venture–parent relationships

Joint ventures (JVs), defined as independent organizations formed by the pooling of resources and sharing of equity by two or more firms, are being formed at an increasingly rapid pace. While much empirical research has examined the conditions which favor the formation of JVs, less attention has been paid to the equally important issues of control and implementation which are the focus of interest in this study. We identify two factors which are expected to influence the design of control mechanisms, i.e., (1) the strategic interdependence between the JV and each parent and (2) the environmental uncertainty faced by the JV. Our empirical examination confirms the importance of the degree of strategic interdependence and the moderating role of environmental uncertainty in explaining the design of control mechanisms. © 1998 John Wiley & Sons, Ltd.     

上海家化出海记

在日化行业,罕有由"东"向"西"的文化倒流,佰草集是一个开始。前不久,全球最大化妆品零售商丝芙兰(Sephora)在巴黎召开的2008年下半年化妆品新品发布会的现场,被布置成了中式庭院风格,象征上海家化旗下的高端中草药化妆品牌——佰草集——形     

Managing foreign R&D laboratories in China

This paper focuses on the management of R&D units established by foreign companies in China, investigating R&D missions, site build-up, integration with the parent organization, and overall performance measurement. The research is based on 37 qualitative expert interviews with local R&D directors and managers conducted between 2001 and 2004, using a semi-structured research questionnaire, and semi-quantitative research done on 199 foreign R&D labs in China. Cultural influences on R&D management, location advantages, expatriate involvement, and organizational evolution of local laboratories are discussed. We find that foreign R&D laboratories in China are not only important vehicles for local market development but also increasingly important sources of locally developed technology.     

Carve-outs under airline antitrust immunity

This paper offers the first formal economic analysis of carve-outs under airline antitrust immunity. Carve-outs are designed to limit the potential anticompetitive effects of cooperation by alliance partners in hub-to-hub markets, where they provide overlapping nonstop service. While the paper shows that carve-outs are beneficial when the alliance does not involve full integration of the partners' operations on the hub-to-hub route, its key point is that a carve-out may be harmful when imposed on a joint-venture alliance. A JV alliance involves full exploitation of economies of traffic density on the hub-to-hub route, and a carve-out prevents the realization of these benefits. While a carve-out may limit anticompetitive incentives on the hub-to-hub route, welfare may be reduced if the resulting gains are overshadowed by the efficiency loss generated by the carve-out.