Economics at your fingertips  

Offshoring, local market entry, and the strategic context of cross-border alliances: The impact on the governance mode

Gabriella Lojacono, Nicola Misani () and Stephen Tallman

International Business Review, 2017, vol. 26, issue 3, 435-447

Abstract: International alliances have been studied in considerable depth, but almost entirely as host market entry options. And while much global value production is done through international alliances, the organizational forms used to control dispersed value chains are often reduced to “make or buy”—that is, captive operations vs. market-based outsourcing. We examine how strategic purpose (vertical or offshore production vs. horizontal or production for local market entry) affects the choice of cooperative governance form. We contend that an offshore production role, as opposed to a market entry strategy, makes an alliance more likely to be governed as a contractual alliance than as a joint venture. Data on 261 cross-border alliances in the major appliances industry largely support our hypotheses. Further, strategic purpose moderates the effects of alliance activities and of the institutional environment of the host country on the choice of governance form.

Keywords: Alliances; Joint ventures; Global production networks; Governance; Household products; Offshoring (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.elsevier. ... me/133/bibliographic

Access Statistics for this article

International Business Review is currently edited by P. Ghauri

More articles in International Business Review from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-02-07
Handle: RePEc:eee:iburev:v:26:y:2017:i:3:p:435-447