Strategic Business Alliances: An Examination of the Core Dimensions (New Horizons in International Business Series)

223 Pages·2004·0.47 MB·English

by  Keith W. Glaister

Strategic Business Alliances
NEWHORIZONS IN INTERNATIONALBUSINESS
Series Editor:PeterJ.Buckley
Centre for International Business,
University of Leeds (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 academics, business strategists and policy
makers alike.
Titles in the series include:
Alliance Capitalism and Corporate Management
Entrepreneurial Cooperation in Knowledge Based Economies
Edited by John H. Dunning and Gavin Boyd
The New Economic Analysis of Multinationals
An Agenda for Management, Policy and Research
Edited by Thomas L. Brewer, Stephen Young and Stephen E. Guisinger
Transnational Corporations, Technology and Economic Development
Backward Linkages and Knowledge Transfer in South East Asia
Axèle Giroud
Alliance Capitalism for the New American Economy
Edited by Alan M. Rugman and Gavin Boyd
The Structural Foundations of International Finance
Problems of Growth and Stability
Edited by Pier Carlo Padoan, Paul A. Brenton and Gavin Boyd
The New Competition for Inward Investment
Companies, Institutions and Territorial Development
Edited by Nicholas Phelps and Philip Raines
Multinational Enterprises, Innovative Strategies and Systems of Innovation
Edited by John Cantwell and José Molero
Multinational Firms’Location and the New Economic Geography
Edited by Jean-Louis Mucchielli and Thierry Mayer
Free Trade in the Americas
Economic and Politicial Issues for Governments and Firms
Edited by Sidney Weintraub, Alan M. Rugman and Gavin Boyd
Economic Integration and Multinational Investment Behaviour
European and East Asian Experiences
Edited by Pierre-Bruno Ruffini
Strategic Business Alliances
An Examination of the Core Dimensions
Keith W. Glaister, Rumy Husan and Peter J. Buckley
Investment Strategies in Emerging Markets
Edited by Saul Estrin and Klaus E. Meyer
Strategic Business
Alliances
An Examination of the Core Dimensions
Keith W. Glaister,
Professor of International Strategic Management, Centre for
International Business, Leeds University Business School,
University of Leeds, UK
Rumy Husan,
Senior Lecturer in the Business Development of Emerging
Markets, Centre for International Business, Leeds University
Business School, University of Leeds, UK
and
Peter J. Buckley,
Professor of International Business and Director of the Centre
for International Business, Leeds University Business School,
University of Leeds (CIBUL), UK
NEWHORIZONS IN INTERNATIONALBUSINESS
Edward Elgar
Cheltenham, UK • Northampton, MA, USA
©Keith W. Glaister, Rumy Husan and Peter J. Buckley 2004
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
Acatalogue record for this book
is available from the British Library
Library of Congress Cataloguing in Publication Data
Strategic business alliances: an examination of the core dimensions / edited by Keith
W. Glaister, Rumy Husan, and Peter J. Buckley.
p. cm.
Includes bibliographical references and index.
1. Strategic alliances (Business)–Management. 2. Joint ventures–Management.
3. Investments, Foreign–Management. I. Glaister, Keith W. II. Husan, Rumy.
III. Buckley, Peter J., 1949–
HD69.S8S78 2004
658′.044–dc22
2003069119
ISBN 1 84376 177 7
Typset by Cambrian Typesetters, Frimley, Surrey
Printed and bound in Great Britain by MPG Books Ltd, Bodmin, Cornwall
Contents
Acknowledgements vi
List of figures viii
List of tables ix
1. Introduction: What do we know about international joint
ventures? 1
2. Strategic motives and performance 18
3. The nature of partner selection 31
4. Management control 53
5. Decision-making autonomy 77
6. Learning to manage international joint ventures 100
7. Partnering skills and cross-cultural issues 120
8. Performance assessment in IJVs: The relationship between
subjective and objective methods and the influence of culture 138
9. Culture and the management of IJVs 157
10. Summary and conclusions 175
Appendix 1 Research methods and sample characteristics 179
Appendix 2 Case vignettes: outlines of the sample IJVs 185
References 195
Index 207
v
Acknowledgements
The authors and publisher gratefully acknowledge permission for use of the
following material:
Chapter 1: A large part of this chapter is based on P.J. Buckley and K.W.
Glaister, ‘What do we know about international joint ventures?’, in F. Contrac-
tor and P. Lorange (eds.) (2002), Co-operative Strategies and Alliances, Else-
vier Science: UK. Ch. 3, 49–69, with permisison from Elsevier.
Chapter 2: An earlier version of this chapter was presented at the
Australia–New Zealand Academy of International Business Annual Confer-
ence, University of New South Wales, Sydney, October 1999.
Chapter 3: An earlier version of this chapter was presented at the Academy of
Management Annual Meeting, Toronto, August 2000.
Chapter 4: An earlier version of this chapter was presented at the British
Academy of Management Annual Conference, Manchester Metropolitan
University, September 1999.
Chapter 5: This chapter is based on K.W. Glaister, R. Husan and P.J. Buckley
(2003), ‘Decision making autonomy in UK international joint ventures’,
British Journal of Management, Vol. 14, with permission from Blackwell
Publishing.
Chapter 6: This chapter is based on K.W. Glaister, R. Husan and P.J. Buckley
(2003), ‘Learning to manage international joint ventures’, International Busi-
ness Review, Vol. 12, No. 1, pp. 83–108, with permission from Elsevier.
Chapter 7: This chapter is based on P.J. Buckley, K.W. Glaister and R. Husan
(2002), ‘Partnering skills and cross-cultural issues’, Long Range Planning,
Vol. 35, No. 2, pp. 113–134, with permission from Elsevier.
Chapter 8: An earlier version of this chapter was presented at the European
International Business Academy (EIBA) Annual Conference, ESCP-EAP,
Paris, December 2001.
vi
Acknowledgements vii
The work in this book forms part of an ESRC project An Investigation of the
Core Dimensions of UK International Joint Venture Activity with European
Partners(R000236676).
Every effort has been made to trace all the copyright holders but if any have
been inadvertently overlooked the publishers will be pleased to make the
necessary arrangements at the first opportunity.
Figures
1.1 IJVs: the time window of observation 14
5.1 Dimensions of IJVdecision making 96
6.1 Lessons in the management of IJVs 109
7.1 IJVskills set 123
viii
Tables
1.1 Relevance of received theory 4
1.2 Special theories of IJVs 6
1.3 Key issues in IJVresearch 7
1.4 Control 12
2.1 Market entry motives: questionnaire data 23
2.2 Non-market entry motives: questionnaire data 24
2.3 IJVsatisfaction by strategic motivation: interview data 26
2.4 IJVperformance measures: questionnaire data 26
2.5 IJVsatisfaction by strategic motivation: questionnaire data 27
3.1 Task-related selection criteria: questionnaire data (1) 39
3.2 Task-related selection criteria: questionnaire data (2) 43
3.3 Prior relationships and favourable past association as a partner
selection criterion: interview data 45
3.4 Importance of partner selection criteria: questionnaire data 46
3.5 Status indicators – quantitative summary: interview data 49
4.1 Control mechanisms 56
4.2 Mechanisms of control used by partners to influence IJV
management: interview data 60
4.3 Mechanisms of control used by partners to influence IJV
management: questionnaire data 64
4.4 Extent of partner control: interview data 66
4.5 IJVpartners’extent of control: questionnaire data 69
4.6 Partner involvement in functional areas: interview data 71
4.7 More active partner in regard to the functional management
of the IJV: questionnaire data 73
5.1 Perceptions of IJVautonomy 83
5.2 IJVdecision-making autonomy: questionnaire data 84
5.3 Extent of joint decision-making: questionnaire data 85
5.4 Nature of IJVdecision-making: interview data 87
5.5 Correlation between satisfaction and autonomy: questionnaire
data (Spearman’s rho) 91
5.6 Correlation between (i) Satisfaction with performance and
perception of IJVautonomy (ii) Age of JVand perception of
IJVautonomy: interview data (Spearman’s rho) 93
ix