Choosing an appropriate alliance governance mode: The role of institutional, cultural and geographical distance in international research & development (R&D) collaborations

Journal of International Business Studies

Volumn 47, Issue 2, 2016, Pages 210-232

  Choi, Jeongho ^a   Contractor, Farok J ^b  

^a RUTGERS UNIVERSITY   (United States)

^b RUTGERS BUSINESS SCHOOL   (United States)

Author keywords

alliance governance mode; geographic distance; institutional distance; international R D alliance; knowledge based vies; transaction cost economics

Indexed keywords

EID: 84955461942     PISSN: 00472506     EISSN: 14786990     Source Type: Journal    
DOI: 10.1057/jibs.2015.28     Document Type: Article

References (86)

1. Alcacer, J., & Chung, W. (2007). Location strategies and knowledge spillovers. Management Science, 53(5): 760-776
2. Ambos, B., & Schlegelmilch, B. B. (2004). The use of international R & D teams: An empirical investigation of selected contingency factors. Journal of World Business, 39(1): 37-48
3. Ambos, T. C., & Ambos, B. (2009). The impact of distance on knowledge transfer effectiveness in multinational corporations. Journal of International Management, 15(1): 1-14
4. Atkinson, R. D. (2007). The globalization of R & D and innovation: How do companies choose where to build R & D facilities? Washington DC: The Information Technology and Innovation Foundation
5. Aulakh, P. S., Marshall, S. J., & Li, S. (2013). Licensee technological potential and exclusive rights in international licensing: A multilevel model. Journal of International Business Studies, 44(7): 699-718
6. Baik, B., Kang, J. K., Kim, J. M., & Lee, J. (2013). The liability of foreignness in international equity investments: Evidence from the US stock market. Journal of International Business Studies, 44(4): 391-411
7. Berry, H., Guillen, M. F., & Zhou, N. (2010). An institutional approach to cross-national distance. Journal of International Business Studies, 41(9): 1460-1480
8. Breschi, S., Lissoni, F., & Malerba, F. (2003). Knowledge-relatedness in firm technological diversification. Research Policy, 32(1): 69-87
9. Brouthers, K. D. (2002). Institutional, cultural and transaction cost influences on entry mode choice and performance. Journal of International Business Studies, 33(2): 203-221
10. Buckley, P. J., & Casson, M. (1996). An economic model of international joint venture development strategy. Journal of International Business Studies, 27(5): 849-876
11. Choi, J., & Yeniyurt, S. (2015). Contingency distance factors and international research and development (R & D), marketing, and manufacturing alliance formations. International Business Review, advance online publication 5 May. doi:10.1016/j.ibusrev.2015.04.007
12. Chung, W., & Yeaple, S. (2008). International knowledge sourcing: Evidence from US firms expanding abroad. Strategic Management Journal, 29(11): 1207-1224
13. Colombo, M. G. (2003). Alliance form: A test of contractual and competence perspectives. Strategic Management Journal, 24(12): 1209-1229
14. Contractor, F. J., & Lorange, P. (2002). Cooperative strategies in international business. Oxford: Elsevier
15. Contractor, F. J., & Ra, W. (2002). How knowledge attributes influence alliance governance choices: A theory development note. Journal of International Management, 8(1): 11-27
16. Contractor, F. J., & Reuer, J. J. (2014). Structuring and governing alliances: New directions for research. Global Strategy Journal, 4(4): 241-251
17. Contractor, F. J., Woodley, J. A., & Piepenbrink, A. (2011). How tight an embrace? Choosing the optimal degree of partner interaction in alliances based on risk, technology characteristics, and agreement provisions. Global Strategy Journal, 1(1-2): 67-85
18. Daft, R. L., & Lengel, R. H. (1986). Organizational information requirements, media richness and structural design. Management Science, 32(5): 554-571
19. Das, T. K., & Teng, B. S. (2000). A resource based theory of strategic alliances. Journal of Management, 26(1): 31-61
20. Davis, P. S., Desai, A. B., & Francis, J. D. (2000). Mode of international entry: An isomorphism perspective. Journal of International Business Studies, 31(2): 239-258
21. Delios, A., & Beamish, P. (1999). Ownership strategy of Japanese firms: Transactional, institutional and experience influences. Strategic Management Journal, 20(8): 711-727
22. De Meyer, A. (1991). Tech talk: How Managers are stimulating global R & D communication. Sloan Management Review, 33(1): 49-58
23. Demirbag, M., & Glaister, K. W. (2010). Factors determining offshore location choice for R & D projects: A comparative study of developed and emerging regions. Journal of Management Studies, 47(8): 1534-1560
24. Demirbag, M., Tatoglu, E., & Glaister, K. W. (2010). Institutional and transaction cost influences on partnership structure of foreign affiliates. Management International Review, 50(6): 709-745
25. Delerue, H., & Simon, E. (2009). National cultural values and the perceived relational risks in biotechnology alliance relationships. International Business Review, 18(1): 14-25
26. Dikova, D. (2009). Performance of foreign subsidiaries: Does psychic distance matter? International Business Review, 18(1): 38-49
27. Folta, T. B. (1998). Governance and uncertainty: The trade-off between administrative control and commitment. Strategic Management Journal, 19(11): 1007-1028
28. Ganesan, S., Malter, A. J., & Rindfleisch, A. (2005). Does distance still matter? Geographic proximity and new product development. Journal of Marketing, 69(1): 44-60
29. Girma, S. (2005). Technology transfer from acquisition FDI and the absorptive capacity of domestic firms: An empirical investigation. Open Economies Review, 16(2): 175-187
30. Gulati, R., & Singh, H. (1998). The architecture of cooperation: Managing coordination costs and appropriation concerns in strategic alliances. Administrative Science Quarterly, 43(4): 781-814
31. Hagedoorn, J., & Duysters, G. (2002). External sources of innovative capabilities: The preference for strategic alliances or M & As. Journal of Management Studies, 39(2): 167-188
32. Hagedoorn, J., & Hesen, G. (2009). Contractual complexity and the cognitive load of R & D alliance contracts. Journal of Empirical Legal Studies, 6(4): 818-847
33. Hagedoorn, J., Lorenz-Orlean, S., & Kranenburg, H. (2008). Interfirm technology transfer: Partnership-embedded licensing or standard licensing agreements? Industrial and Corporate Change, 18(3): 529-550
34. Hamel, G. (1991). Competition for competence and inter-partner learning within international strategic alliances. Strategic Management Journal, 12(1): 83-103
35. Hansen, M. T., & Lovas, B. (2004). How do multinational companies leverage technological competencies? Moving from single to interdependent explanations. Strategic Management Journal, 25(8): 801-822
36. Hart, O., & Moore, J. (1999). Foundations of incomplete contracts. The Review of Economic Studies, 66(1): 115-138
37. Hennart, J. F. (1988). A transaction costs theory of equity joint ventures. Strategic Management Journal, 9(4): 361-374
38. Hennart, J. F. (1991). Control in multinational firms: The role of price and hierarchy. Management International Review, 31(1): 71-96
39. Hennart, J. F., & Larimo, J. (1998). The impact of culture on the strategy of multinational enterprises: Does national origin affect ownership decisions? Journal of International Business Studies, 29(3): 515-538
40. Hofstede, G. (1994). Cultures and organizations, software of the mind: Intercultural cooperation and its importance for survival. London: McGraw-Hill
41. Hymer, S. H. (1976). The international operations of national firms: A study of direct foreign investment. Cambridge, MA: MIT Press
42. Katz, R., & Allen, T. J. (1982). Investigating the not invented here (NIH) syndrome: A look at the performance, tenure and communication patterns of 50 R & D project groups. R & D Management, 12(1): 7-19
43. Kaufmann, D., Kraay, A., & Mastruzzi, M. (2005). Governance matters IV: Governance indicators for 1996-2004. World Bank Policy Research Paper No. (3630). Washington, D.C
44. Kogut, B. (1988). Joint ventures: Theoretical and empirical perspectives. Strategic Management Journal, 9(4): 319-332
45. Kogut, B., & Zander, U. (1992). Knowledge of the firm, combinative capabilities and the replication of technology. Organization Science, 3(3): 383-397
46. Kostova, T., & Roth, K. (2002). Adoption of an organizational practice by subsidiaries of multinational corporations: Institutional and relational effects. Academy of Management Journal, 43(1): 215-233
47. Lane, H. W., & Beamish, P. W. (1990). Cross-cultural cooperative behavior in joint ventures in LCDs. Management International Review, 30(Special Issue): 87-102
48. Lane, P. J., & Lubatkin, M. (1998). Relative absorptive capacity and inter-organizational learning. Strategic Management Journal, 19(5): 461-477
49. Lu, J. W. (2002). Intra-And inter-organizational imitative behavior: Institutional influences on Japanese firms' entry mode choice. Journal of International Business Studies, 33(1): 19-37
50. Macher, J. T. (2006). Technological development and the boundaries of the firm: A knowledge-based examination in semiconductor manufacturing. Management Science, 52(6): 826-843
51. Meyer, K. E. (2001). Institutions, transaction costs and entry mode choice in Eastern Europe. Journal of International Business Studies, 32(2): 357-367
52. Minbaeva, D. B. (2007). Knowledge transfer in multinational corporations. Management International Review, 47(4): 567-593
53. Mowery, D. C., Oxley, J. E., & Silverman, B. S. (1996). Strategic alliances and inter-firm knowledge transfer. Strategic Management Journal, 17(1): 77-91
54. Neter, J., Wasserman, W., & Kutner, M. (1985). Applied linear statistical models. Homewood, IL: Richard D. Irwin
55. Oxley, J. E. (1997). Appropriability hazards and governance in strategic alliances: A transaction cost approach. The Journal of Law, Economics and Organization, 13(2): 387-409
56. Oxley, J. E., & Wada, T. (2009). Alliance structure and the scope of knowledge transfer: Evidence from US-Japan agreements. Management Science, 55(4): 635-649
57. Pan, Y., & Tse, D. K. (2000). The hierarchical model of market entry modes. Journal of International Business Studies, 31(4): 535-554
58. Pateli, A. G., & Giaglis, G. M. (2007). Governance contingencies for strategic technology alliances: A case in wireless business. International Journal of Technology Management, 40(4): 310-329
59. PhRMA (Pharmaceutical Research and Manufacturers of America). 2007, 2009, 2010 and 2011. Profile pharmaceutical industry. Washington DC: PhRMA
60. Prahalad, C. K., & Ramaswamy, V. (2003). The new frontier of experience innovation. Sloan Management Review, 44(4): 12-18
61. Rang, H. P. (2006). The drug discovery process: General principles and some case histories. In H. P. Rang (Ed), Drug discovery and development: Technology in transition 43-56. London: Churchill Livingstone
62. Reuer, J. J., & Ariño, A. (2007). Strategic alliance contracts: Dimensions and determinants of contractual complexity. Strategic Management Journal, 28(3): 313-330
63. Richards, M., & Yang, Y. (2007). Determinants of foreign ownership in international R & D joint ventures: Transaction costs and national culture. Journal of International Management, 13(2): 110-130
64. Rothaermel, F. T. (2001). Complementary assets, strategic alliances, and the incumbent's advantage: An empirical study of industry and firm effects in the biopharmaceutical industry. Research Policy, 30(8): 1235-1251
65. Rothaermel, F. T., & Deeds, D. L. (2004). Exploration and exploitation alliances in biotechnology: A system of new product development. Strategic Management Journal, 25(3): 201-221
66. Rothaermel, F. T., & Deeds, D. L. (2006). Alliance type, alliance experience and alliance management capability in high-Tech ventures. Journal of Business Venturing, 21(4): 429-460
67. Rowberg, R. E. (2001). Pharmaceutical research and development: A description and analysis of the process. Washington DC: Congressional Research Service
68. Salter, S. F., & Olson, E. M. (2001). Marketing's contribution to the implementation of business strategy: An empirical analysis. Strategic Management Journal, 22(11): 1055-1067
69. Sampson, R. C. (2004). Organizational choice in R & D alliances: Knowledge-based and transaction cost perspectives. Managerial and Decision Economics, 25(6-7): 421-436
70. Santoro, M. D., & McGill, J. P. (2005). The effect of uncertainty and asset co-specialization on governance in biotechnology alliances. Strategic Management Journal, 26(13): 1261-1269
71. Schwens, C., Eiche, J., & Kabst, R. (2011). The moderating impact of informal institutional distance and formal institutional risk on SME entry mode choice. Journal of Management Studies, 48(2): 330-351
72. Shenkar, O. (2012). Cultural distance revisited: Towards a more rigorous conceptualization and measurement of cultural differences. Journal of International Business Studies, 43(1): 1-11
73. Sosa, M. L. (2009). Application-specific R & D capabilities and the advantage of incumbents: Evidence from the anticancer drug market. Management Science, 55(8): 1409-1422
74. Steensma, H. K., Marino, L., & Dickson, P. H. (2000). The influence of national culture on the formation of technology alliances by entrepreneurial firms. Academy of Management Journal, 43(5): 951-973
75. Tapon, F., & Thong, M. (1999). Research collaborations by multinational research oriented pharmaceutical firms: 1988-1977. R & D Management, 29(3): 219-231
76. Teece, D. (1981). The market for know-how and the efficient international transfer of technology. 458th Annals of the American Academy of Political and Social Science: 81-96
77. Thompson, J. D. (1967). Organizations in action: Social science bases of administrative theory. New Brunswick: Transaction Publishers
78. Tse, D. K., Pan, Y., & Au, K. Y. (1997). How MNCs choose entry modes and form alliances: The China experience. Journal of International Business Studies, 28(4): 779-805
79. von Zedtwitz, M., & Gassman, O. (2002). Market versus technology drive in R & D internationalization: Four different patterns of managing research and development. Research Policy, 31(4): 569-588
80. Vrande, V. V., Vanhaverbeke, W., & Duysters, G. (2009). External technology sourcing: The effect of uncertainty on governance mode choice. Journal of Business Venturing, 24(1): 62-80
81. Westney, D. E. (1990). Internal and external linkages in the MNC: The case of R & D subsidiaries in Japan. In C. A. Bartlett, Y. Doz, & G. Hedlund (Eds), Managing the global firm 279-300. London: Business Press
82. Williamson, O. E. (1979). Transaction-cost economics: The governance of contractual relations. Journal of Law and Economics, 22(2): 233-261
83. Yamin, M., & Golesorkhi, S. (2010). Cultural distance and the pattern of equity ownership structure in international joint ventures. International Business Review, 19(5): 457-467
84. Zaheer, A., & Venkatraman, N. (1995). Relational governance as an interorganizational strategy: An empirical test of the role of trust in economic exchange. Strategic Management Journal, 16(5): 373-392
85. Zaheer, S. (1995). Overcoming the liability of foreignness. Academy of Management Journal, 38(2): 341-363
86. Zhou, K. Z., Poppo, L., & Yang, Z. (2008). Relational ties or customized contracts? An examination of alternative governance choices in China. Journal of International Business Studies, 39(3): 526-534