The Role of Level of Country Development on Type of International Cooperative Arrangement Activities: A Survey of U.S. Based Manufacturing Multinationals

An Examination of Inter-Firm Cooperative Arrangements of U.S. Manufacturing Firms

“…Cooperative arrangements can take a range of different structural forms (see Ramaya & Khayum, 2002;Ramaya & Smith, 2003) that affect the pattern of decision making, responsibilities, and the control of capabilities within an organization considering strategic cooperation. Jointly owned ventures, licensing relationships, joint R&D programs, co-marketing programs, and partial equity investments qualify as cooperative arrangements by this definition.…”

“…Porter and Fuller (1986) stress that cooperative arrangements should be treated as a class of transactions, and analyzed from the standpoint of their purpose. Using this same method, Ramaya 1997, andRamaya andSmith (2003), noted that cooperative arrangements in most studies are classified as equity or nonequity ventures, or distinguished as a legal entity. Although the legal structure is important, Ramaya and Smith go on to state that the purpose for the arrangement cannot be identified by its legal structure In addition, they discuss that an equity-based R&D joint venture could have the same purpose as a cross-licensing agreement.…”

“…As outlined in Ramaya 1997, andRamaya andSmith (2003), Porter and Fuller (1986) propose four types of benefits from cooperative arrangements:…”

“…TECHNOLOGY DEVELOPMENT (TD) Although cited in greater detail in Ramaya (1997) and Ramaya and Smith (2003), for the purposes of this paper it is sufficient to note that cooperative 18 K. Ramaya et al arrangements with respect to technology development may obtain benefits from risk reduction, economies of scale, and shaping competition. (Ramaya, 1997, andRamaya &Smith, 2003).…”

“…Specifically, research is lacking in areas of preferences to cooperate and locate cooperation in particular regions of the world. This paper is an extension of an earlier study (Ramaya & Smith, 2003) and investigates the potential existence of trends, on the incidences of cooperative arrangements over time classified by origin: domestic, regional (Asian and European) and other international arrangements.…”