Joint ventures or non‐equity alliances? Evidence from Italian firms
Abstract
Purpose
The purpose of this paper is to investigate the factors affecting the choice between joint ventures and non‐equity alliances, when firms enter foreign markets.
Design/methodology/approach
Using a database of Italian firms compiled by the authors with 879 observations, the paper tests the possible effects of firm specific characteristics, host country institutional characteristics and cultural distance on alliance mode choice.
Findings
Using both transaction cost analysis and the resource based view, the findings demonstrate the crucial role played by firm size as well as by institutional and political features of host countries. The results concerning the role of functional activities involved and the industrial sector are mixed.
Originality/value
Overall, the analysis shows that it is necessary to develop a more integrated approach to understand this complex choice made by firms when expanding abroad.
Keywords
Citation
Majocchi, A., Mayrhofer, U. and Camps, J. (2013), "Joint ventures or non‐equity alliances? Evidence from Italian firms", Management Decision, Vol. 51 No. 2, pp. 380-395. https://doi.org/10.1108/00251741311301876
Publisher
:Emerald Group Publishing Limited
Copyright © 2013, Emerald Group Publishing Limited