Domestic alliance network to attract foreign partners: Evidence from international joint ventures in China
Partner selection is a critical issue in building international joint ventures (IJVs). We argue that foreign firms are more likely to select local firms with unique network structural advantages within a local alliance network. We frame structural advantages as two network position traits: centralit...
| Main Authors: | , , , |
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| Format: | Journal Article |
| Published: |
Palgrave Macmillan
2014
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| Online Access: | http://hdl.handle.net/20.500.11937/50178 |
| _version_ | 1848758413783203840 |
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| author | Shi, W. Sun, S. Pinkham, B. Peng, Mike |
| author_facet | Shi, W. Sun, S. Pinkham, B. Peng, Mike |
| author_sort | Shi, W. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Partner selection is a critical issue in building international joint ventures (IJVs). We argue that foreign firms are more likely to select local firms with unique network structural advantages within a local alliance network. We frame structural advantages as two network position traits: centrality and brokerage. Specifically, network centrality acts as a stronger network trait than brokerage in attracting foreign IJV partners. However, such a relationship may be moderated by foreign firms' local experience and perceived capabilities. We contend that when foreign firms have a high level of local market experience and perceived capabilities, they may prefer a local broker over a centrally located local firm. Data on the domestic alliance network in China's electronics and information technology (IT) industries largely support our hypotheses. We conclude that as foreign investors become strategic insiders, they may not only seek a local partner's capability attributes, but also more critically pay attention to a local partner's domestic network. |
| first_indexed | 2025-11-14T09:43:36Z |
| format | Journal Article |
| id | curtin-20.500.11937-50178 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T09:43:36Z |
| publishDate | 2014 |
| publisher | Palgrave Macmillan |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-501782017-09-13T15:37:03Z Domestic alliance network to attract foreign partners: Evidence from international joint ventures in China Shi, W. Sun, S. Pinkham, B. Peng, Mike Partner selection is a critical issue in building international joint ventures (IJVs). We argue that foreign firms are more likely to select local firms with unique network structural advantages within a local alliance network. We frame structural advantages as two network position traits: centrality and brokerage. Specifically, network centrality acts as a stronger network trait than brokerage in attracting foreign IJV partners. However, such a relationship may be moderated by foreign firms' local experience and perceived capabilities. We contend that when foreign firms have a high level of local market experience and perceived capabilities, they may prefer a local broker over a centrally located local firm. Data on the domestic alliance network in China's electronics and information technology (IT) industries largely support our hypotheses. We conclude that as foreign investors become strategic insiders, they may not only seek a local partner's capability attributes, but also more critically pay attention to a local partner's domestic network. 2014 Journal Article http://hdl.handle.net/20.500.11937/50178 10.1057/jibs.2013.71 Palgrave Macmillan restricted |
| spellingShingle | Shi, W. Sun, S. Pinkham, B. Peng, Mike Domestic alliance network to attract foreign partners: Evidence from international joint ventures in China |
| title | Domestic alliance network to attract foreign partners: Evidence from international joint ventures in China |
| title_full | Domestic alliance network to attract foreign partners: Evidence from international joint ventures in China |
| title_fullStr | Domestic alliance network to attract foreign partners: Evidence from international joint ventures in China |
| title_full_unstemmed | Domestic alliance network to attract foreign partners: Evidence from international joint ventures in China |
| title_short | Domestic alliance network to attract foreign partners: Evidence from international joint ventures in China |
| title_sort | domestic alliance network to attract foreign partners: evidence from international joint ventures in china |
| url | http://hdl.handle.net/20.500.11937/50178 |