Affects of alliance entrepreneurship on common vision,alliance capability and alliance performance

The underlying theoretical argument of our study concerns that value from alliance knowledge may be created not only through exploitation and augmentation of the existing organizational knowledge base, but more through entrepreneurial actions in accessing and integrating key strategic resources that exist in the alliance relationship. In this view, our study investigates the role of alliance entrepreneurship with its effects on common vision, alliance capability and alliance performance in penetrating into the foreign markets. This study develops and empirically tests a model that specifically focuses on (1) to what extent alliance entrepreneurship relates to developing a common vision between alliance and organizational knowledge, (2) to what extent alliance entrepreneurship relates to the alliance capability and alliance performance respectively, and (3) to what extent barriers to alliance knowledge acquisition and learning orientation moderate the relationship between alliance entrepreneurship and alliance capability.Based on a sample of 100 ICT firms, findings of our study reveal a positive and significant affect of alliance entrepreneurship on common vision, alliance capability and alliance performance. However, more significant support is received for the relation between alliance entrepreneurship and alliance capability through moderating interaction effects of barriers to alliance knowledge acquisition and firm level learning orientation.     

Cultural tendencies in negotiation: A comparison of Finland, India, Mexico, Turkey, and the United States

In this era of increased global cooperation, a growing number of negotiators conduct business in multiple countries and, therefore, need access to a systematic comparison of negotiating tendencies across a wide range of countries. Empirical work systematically comparing variations across a range of cultures is scarce. A comparative analysis of negotiating tendencies in five countries is presented. This study establishes the utility of the [Salacuse, J. (1998) Ten ways that culture affects negotiating style: Some survey results. Negotiation Journal, 14(3): 221–235] framework in identifying country differences across five countries, representing five cultural clusters. Significant differences in negotiation orientations both between and within cultures were revealed at a level of complexity not found in previous empirical studies.     

Managing international joint ventures to improve performance: The role of structural and social mechanisms

Poor performance has been a major concern in research on international joint ventures (IJVs). This study integrates the IJV management mechanisms from transaction cost theory (TCT) and social exchange theory (SET) in order to gain insights into management mechanisms that improve IJV performance. The framework consists of three structural (i.e., symmetric dependence, symmetric equity share and resource complementarity) and three social (i.e., trust, communication and cultural adaptation) IJV management mechanisms, which are considered as potential determinants of IJV performance. Based on the analysis of data collected from 89 IJVs established by Nordic firms in Asia, Europe and the USA, results indicate that TCT-based symmetric dependence and resource complementarity on the one hand and SET-based trust, communication and cultural adaptation on another significantly improve IJV performance. However, impact of symmetric equity share on IJV performance remains negative and non-significant, explaining that IJV partners may consider it rather a safeguard to their own stake and interests in IJVs. In addition, SET-based IJV management mechanisms are found to be more effective than the TCT-based IJV mechanisms in improving IJV performance.     

Greenfield Investments or Acquisitions: Impacts of Institutional Distance on Establishment Mode Choice of Multinational Enterprises in Emerging Economies

ABSTRACT

The authors analyze the impacts of formal and informal institutional distance on establishment mode choice of multinational enterprises (MNEs) using a sample of 343 foreign direct investments (FDIs) made in selected emerging economies of Central and Eastern Europe, Asia, and Latin America by the Finnish MNEs. This study contributes to conceptualization and operationalization of institutional distance as well as its application in international business studies. The empirical analysis revealed that high informal institutional distance results in preference of greenfield investments by the Finnish MNEs as the authors hypothesized. However, the authors also found that high formal institutional distance results in preference of acquisitions, which is opposite the study hypothesis as well as the findings of previous studies addressing similar issues.