Cooperative Strategies between Foreign Firms in an Overseas Country

Yigang Pan and David K Tse
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Yigang Pan: University of Oregon and DePaul University
David K Tse: City University of Hong Kong

Journal of International Business Studies, 1996, vol. 27, issue 5, 929-946

Abstract: In this paper, we study the cooperative strategies between two firms in an overseas country. In part 1, we examine the circumstances under which foreign firms would cooperate with another foreign firm in a third country market. Drawing upon existing literature, we develop and test a set of hypotheses using a longitudinal data set from China. The types of cooperative arrangements include all the major modes of operation. In part 2, we further investigate what types of operation and level of control exist among the cooperative arrangements between two foreign firms in China. We used a sample of 483 cooperative arrangements between two firms from Hong Kong, the U.S., Japan, Germany, or Britain. This study offers interesting insight as to why foreign firms form cooperative arrangements in an overseas country and what types of cooperative arrangements these firms prefer.© 1996 JIBS. Journal of International Business Studies (1996) 27, 929–946

Date: 1996
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