 Risk mitigation strategies in international B2B relationships: Role of institutions and governanceDeeksha Singh and Ajai S. Gaur Journal of Business Research, 2021, vol. 136, issue C, 1-9 Abstract: The ubiquitous presence of B2B relationships in the international business context makes it imperative for scholars to understand the risks involved in these relationships. Yet, we have an inadequate understanding of the nature and extent of risks that MNCs face in international B2B relationships. We present a comprehensive model of risks that MNCs face in different types of B2B relationships. We then discuss the strategic choices that MNCs pursue to manage these risks. Specifically, we argue that the national differences affect the nature and extent of risks that MNCs face in their B2B relationships. We then focus on equity-based B2B relationships and argue that the governance structure that MNCs choose helps alleviate both the ex-ante and ex-post risks in a B2B relationship. We also discuss the contingencies – national differences, intangible assets of the MNC, and host country- and partnership-specific experience of the MNC – that impact MNCs’ risk management strategies. Keywords: Risk management; MNCs; Equity ownership; Expatriate staffing; Formal and informal control; Governance structure; Institutional distance (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:136:y:2021:i:c:p:1-9 DOI: 10.1016/j.jbusres.2021.07.026 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.