Status and international alliance formation

Abstract

Purpose Evidence suggests that “single-market” alliances are more likely to form between firms in similar socially determined status positions. However, in international alliances, firms come from different status interfaces and foreign partners may become status competitors. Hence, the preference for partners with similar socially derived status positions in their respective markets, or status homophily, is unclear in ‘international’ partner selections. This analysis aims to better understand this issue. Design/methodology/approach This research explores status homophily in international alliance formation using a database of hand-collected tombstone announcements for US initial public offering syndicates involving Japanese securities firms from 1975 through 1984. Findings Results suggest that firms are attracted to partners who occupy similar socially derived status positions in their own home markets. Additionally, high-status host-country firms may signal status differences within alliances to reduce status competition from high-status foreign partners. Originality/value This research indicates that “international” alliance research needs to consider socially derived status positions. Additionally, academics and practitioners alike can benefit from the knowledge that status signaling within alliances can be a type of competitive behavior between cooperating firms.

Reordenação do status da cachaça de alambique: uma abordagem sob a ótica do trabalho institucional

“…As atenções estão focadas na mobilidade em espaço de mercados, enfatizando como posições verticais produzem oportunidades de mobilidade para alavancar o status de uma categoria para outra (Skvoretz & Fararo, 2016;Powell, Takahashi, & Roehl, 2017). Ressaltam-se ainda os estudos que se destinam às múltiplas posições no mercado, ilustrando como as fronteiras entre categorias afetam a mobilidade organizacional e como novas posições verticais emergem (Hsu, Koçak, & Hannan, 2009;Kim & Jensen, 2009;Brankovic, 2018).…”

Success factors influencing the selection of the location of international firms

“…Another line of research addressed the importance of the international partner selection in the successfulness and effectiveness of the location choice of international joint ventures and strategic alliances (Hitt et al, 2017;Powell et al, 2017;Hyder and Abraha, 2006;Luo, 2002;Silva et al, 2017). For instance, a recent comparative study by Hitt et al (2017) examined the importance of the international partner selection in the success of international strategic alliance in emerging and developed markets.…”