Alliance Capitalism and Corporate Management: Entrepreneurial Cooperation in Knowledge Based Economies (New Horizons in International Business)

329 Pages·2003·1.06 MB·English

by  John Dunning

Alliance Capitalism and Corporate
Management
NEW HORIZONS IN INTERNATIONAL BUSINESS
Series Editor:Peter J.Buckley
Centre for International Business,
University ofLeeds (CIBUL),UK
The New Horizons in International Business series has established itself as the world’s
leading forum for the presentation of new ideas in international business research.It
offers pre-eminent contributions in the areas of multinational enterprise – including
foreign direct investment,business strategy and corporate alliances,global competitive
strategies,and entrepreneurship.In short,this series constitutes essential reading for aca-
demics,business strategists and policy makers alike.
Titles in the series include:
Corporate Governance and Globalization
Long Range Planning Issues
Edited by Stephen S.Cohen and Gavin Boyd
The European Union and Globalisation
Towards Global Democratic Governance
Brigid Gavin
Globalization and the Small Open Economy
Edited by Daniel Van Den Bulcke and Alain Verbeke
Entrepreneurship and the Internationalisation ofAsian Firms
An Institutional Perspective
Henry Wai-chung Yeung
The World Trade Organization in the New Global Economy
Trade and Investment Issues in the Millennium Round
Edited by Alan M.Rugman and Gavin Boyd
Japanese Subsidiaries in the New Global Economy
Edited by Paul W.Beamish,Andrew Delios and Shige Makino
Globalizing Europe
Deepening Integration,Alliance Capitalism and Structural Statecraft
Edited by Thomas L.Brewer,Paul A.Brenton and Gavin Boyd
China and its Regions
Economic Growth and Reform in Chinese Provinces
Edited by Mary-Françoise Renard
Emerging Issues in International Business Research
Edited by Masaoki Kotabe and Preet S.Aulakh
Network Knowledge in International Business
Edited by Sarianna M.Lundan
Learning in the Internationalisation Process ofFirms
Edited by Anders Blomstermo and D.Deo Sharma
Alliance Capitalism and Corporate Management
Entrepreneurial Cooperation in Knowledge Based Economies
Edited by John H.Dunning and Gavin Boyd
Alliance Capitalism
and Corporate
Management
Entrepreneurial Cooperation in Knowledge
Based Economies
Edited by
John H. Dunning
Emeritus Esmee Fairbairn Professor of International
Investment and Business Studies,University of Reading,UK
and Emeritus State of New Jersey Professor of International
Business, Rutgers University,USA
and
Gavin Boyd
Honorary Professor,Political Science Department, Rutgers
University,Newark,New Jersey,USA,and Adjunct Professor,
Management Faculty,Saint Mary’s University,Halifax,
Canada
NEW HORIZONS IN INTERNATIONAL BUSINESS
Edward Elgar
Cheltenham,UK • Northampton,MA,USA
© John H.Dunning,Gavin Boyd 2003
All rights reserved.No part of this publication may be reproduced,stored in
a retrieval system or transmitted in any form or by any means,electronic,
mechanical or photocopying,recording,or otherwise without the prior
permission of the publisher.
Published by
Edward Elgar Publishing Limited
Glensanda House
Montpellier Parade
Cheltenham
Glos GL50 1UA
UK
Edward Elgar Publishing,Inc.
136 West Street
Suite 202
Northampton
Massachusetts 01060
USA
A catalogue record for this book is available from the British Library
Library ofCongress Cataloguing in Publication Data
Alliance capitalism and corporate management :entrepreneurial cooperation in
knowledge based economies / edited by John H.Dunning and Gavin Boyd.
p.cm.– (New horizons in international business)
Includes index.
1.Strategic alliances (Business) 2.International business enterprises–
Management.3.Investments,Foreign.4.Competition.5.Knowledge
management.I.Dunning,John H.II.Boyd,Gavin.III.Series.
HD69.S8 A434 2003
338.8(cid:2)7–dc21 2002029831
ISBN 1 84064 839 2
Printed and bound in Great Britain by MPG Books Ltd,Bodmin,Cornwall
Contents
List of figures vii
List of tables viii
List of contributors x
Foreword xii
Preface xiv
1 Relational assets,networks and international business activity 1
John H.Dunning
2 Alliance capitalism and macroeconomic policies 24
Gavin Boyd
3 Alliance capitalism and microeconomic policies 45
Gavin Boyd and Paul A.Brenton
4 Inter-firm R&D partnering in high technology industries 63
Nadine Roijakkers and John Hagedoorn
5 Financial liberalization,alliance capitalism and the changing
structure of financial markets 92
Nigel Pain and Desirée van Welsum
6 Corporate alliances in the world trading system 129
Gavin Boyd
7 Corporate alliances and competition policies 154
Gavin Boyd and Alan M.Rugman
8 Alliance capitalism in Europe 171
Sarianna M.Lundan
9 EU growth strategy and the new economy 192
Pierluigi Morelli,Pier Carlo Padoan and Lisa Rodano
10 American alliance capitalism 207
Claude E.Barfield and Cordula Thum
11 Japan’s network capitalism in evolution 230
Terutomo Ozawa
v
vi Alliance capitalism and corporate management
12 Alliance capitalism,FDI and developing countries 249
Stephen Young and Neil Hood
13 Alliance capitalism and collective management 275
Gavin Boyd
Index 309
Figures
1.1 The pyramid of corporate assets 4
1.2 Types of R-assets 9
4.1 Growth of newly established R&D partnerships,three-year
moving averages,1975–98 65
4.2 Share (%) of contractual modes in all newly established
R&D partnerships,three-year moving averages,1975–98 71
4.3 Share (%) of international and domestic (regional)
partnerships in newly established R&D partnerships,
three-year moving averages,1975–98 73
4.4a International distribution of R&D partnerships,1975–79 74
4.4b International distribution of R&D partnerships,1980–84 74
4.4c International distribution of R&D partnerships,1985–89 74
4.4d International distribution of R&D partnerships,1990–94 74
4.4e International distribution of R&D partnerships,1995–98 74
5.1 Mergers and acquisitions (% of GDP) 100
5.2 EU conglomerate transactions 104
5.3 OECD mergers and acquisitions by sector 1991–99 (%) 106
5.4 Proportion of short-term foreign bank loans (mid-year,%) 116
5.5 Stock market capitalization in 1990 and GDPgrowth in the
1990s 121
5.6 Deposit money bank assets in 1990 and growth in the 1990s 121
5.7 FDI stocks in 1990 and GDP growth in the 1990s 121
9.1 Factor analysis 195
9.2 Economic convergence 199
10.1 Regional distribution of strategic alliances (%),1990–99 212
10.2 Strategic alliances in the United States,1990–99 215
10.3 Types of US international alliances,1990–99 216
10.4 Purposes of US international alliances,1990–99 220
10.5 Sectoral distribution of US international alliances,1990–99 223
11.1 Trichotomy of economic coordination 231
11.2 Japan as a network society and its manifestations in business
organization 235
11.3 Japan’s catch-up in structural upgrading under different
forms of business organization 243
12.1 Alternative perspectives on MNE activities in host
developing countries 266
vii
Tables
1.1 The changing characteristics of income generating
assets 2
1.2 Some unique characteristics of R-assets 5
1.3 Selected ingredients of R-assets:what do they consist of? 7
1.4 Some measures of R-assets (or liabilities!) 10
4.1a The top ten companies with R&D partnerships,economic
regions,1975–79 79
4.1b The top ten companies with R&D partnerships,economic
regions,1980–84 80
4.1c The top ten companies with R&D partnerships,economic
regions,1985–89 81
4.1d The top ten companies with R&D partnerships,economic
regions,1990–94 82
4.1e The top ten companies with R&D partnerships,economic
regions,1995–98 83
5.1 The global foreign exchange and derivatives markets 99
5.2 Financial mergers and acquisitions (by country and sector
of acquiring firm) 101
5.3 Financial joint ventures and strategic alliances (by country
of acquiring firm) 105
5.4 Foreign bank lending by nationality of reporting bank in
2001Q3 107
5.5 Banks’distribution by size 111
5.6 Financial development and growth 120
9.1 Performance and policy indicators 193
9.2 Cluster analysis 197
9.3 Transition matrix 198
10.1 Regional distribution of strategic alliances,1990–99 (number
of deals) 213
10.2 Regional correlation:total alliances,1990–99 (number of
deals) 213
10.3 Strategic alliances in OECD countries,1990–99 (number of
deals) 215
10.4 Share of international alliances in US total alliances (share
of deals,%) 218
viii
Tables ix
10.5 Regional correlation:marketing alliances,1990–99 (number
of deals) 219
10.6 Regional correlation:R&D alliances,1990–99 (number of
deals) 219
10.7 Regional distribution of US international alliance partners
(number of deals) 221
10.8 Top ten countries of US international alliance partners
(number of deals) 221
10.9 Regional correlation:manufacturing alliances,1990–99
(number of deals) 222
10.10 Industrial distribution of US international alliances (%) 224
12.1 Potential issues for inclusion in alliance compact and MNE
affiliate involvement 267