Structuring International Cooperative Ventures

Noe, Thomas H.; Rebello, Michael J.; Shrikhande, Milind

doi:10.1093/rfs/15.4.1251

Cited by 15 publications

(10 citation statements)

References 22 publications

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“…Therefore, Italian SMEs opted for this choice as powerful partner firms can offer access to useful tangible and intangible resources leading to increased competitiveness (Perks and Moxey, 2011;Gomes et al, 2011;Rabelo et al, 2016). This choice further reduces the threat of potential of opportunism by powerful host country partners of Italian SMEs due to equity sharing (e.g., Noe et al, 2002).…”

Section: Discussionmentioning

confidence: 99%

Influences of cognitive dimensions on the collaborative entry mode choice of small- and medium-sized enterprises

Giudice

Arslan

Scuotto

et al. 2017

IMR

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Purpose-Our paper addresses internationalisation of small and medium-sized enterprises (SMEs) by specifically focusing on collaborative entry modes. Despite significant research done on market entry strategies of firms, the use of collaborative entry modes by SMEs during internationalisation has not received a lot of attention. We contribute to foreign market entry literature by analysing the influences of cognitive dimensions on collaborative entry mode choice (equity vs. non-equity modes) of SMEs in their international markets. Design/methodology/approach-We analyse the influences of cognitive dimensions on the choice between equity-based vs. non-equity-based collaborative entry modes. Our empirical sample consists of 345 Italian SMEs, where we used a questionnaire to collect the data. We use structural equation modelling (SEM) to analyse influences of factors like asymmetric information, informal institutional distance, time trends of country, perception of size and resources of potential host country partners, and perception of host country partners' power on this important market entry mode. Findings-Our results show that high informal institutional distance leads to preference of non-equity-based collaborative entry mode by Italian SMEs. We also find that positive time trends of the host country, positive perception of size and resource of the local partner, as well as the local partners' power leads to preference of equity-based collaborative entry mode by Italian SMEs. Originality/value-This study focuses on an ignored aspect of market entry strategies, i.e., equity vs. non-equity collaborative entry mode choice of SMEs. We use insights from resource based view and cognitive dimensions literature, to address the influences of five cognitive dimensions on the collaborative entry mode choice of SMEs during their internationalisation.

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Section: Discussionmentioning

confidence: 99%

Influences of cognitive dimensions on the collaborative entry mode choice of small- and medium-sized enterprises

Giudice

Arslan

Scuotto

et al. 2017

IMR

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“…The allocation of control rights is likely to depend upon the relative values of the relative contributions and bargaining positions of the partners (Noe, Rebello, and Shrikhande, ). A firm facing severe financial constraints with limited access to external financing may be in a weaker bargaining position during negotiations for the allocation of control rights in a JV.…”

Section: Jvs As Hybrid Structures Of Controlmentioning

confidence: 99%

The Control and Performance of Joint Ventures

Mantecon¹,

Song²,

Luo

2015

Financial Management

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We analyze the control and performance of assets operating in joint ventures (JVs). Control in JVs is determined by the allocation of voting rights and by the contracts that govern the JVs. This hybrid allocation of control seeks to reduce the potential for ex post opportunism. The results suggest that contractual provisions encourage collaboration and improve JV performance when one of the partners accepts a minority position on the board. The analysis also reveals that with the exception of JVs with contractual option provisions, assets operating in our sample of JVs generate higher returns than assets in fully controlled subsidiaries.

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“…The allocation of control rights is likely to depend upon the relative values of the relative contributions and bargaining positions of the partners (Noe, Rebello, and Shrikhande, 2002). A firm facing severe financial constraints with limited access to external financing may be in a weaker bargaining position during negotiations for the allocation of control rights in a JV.…”

Section: Table III Probit Analysis Of the Control Structure In Jvsmentioning

confidence: 99%