Anticipated duration of international joint ventures: A transaction cost perspective

Prior to reshoring: A duration analysis of foreign manufacturing ventures

“…Most of the aforementioned empirical studies are a-theoretical in nature, with three notable exceptions: Jiang et al (2011) explains duration in terms of transaction costs offshore; Mata and Portugal (2000) link it to the ownership advantages of the eclectic paradigm, i.e., the ability of firms to maintain or develop offshore non-imitable firm-specific assets; and Goo et al (2007) integrate several theoretical perspectives, among which knowledge acquisition (absorptive capacity and organizational learning), strategic importance of activity (resource dependence theory), and supplier opportunism (transaction cost economics).…”

“…In particular, evidence exists of a significant impact of firm and investment characteristics. For instance, both asset specificity and high irreversibility of the investments are expected to lead to longer durations (Goo et al, 2007;Jiang et al, 2009Jiang et al, , 2011.…”

“…Likewise, captive forms of offshoring are expected to give rise to longer offshoring durations with respect to offshore outsourcing, due to the larger direct investments involved (Jiang et al, 2011;Mata & Portugal, 2000). In addition, since firm size captures a whole wealth of firm's resources that the company can deploy in offshore locations (personnel, human capital, R&D capacity, control), size is expected to be positively linked to duration (Jiang et al, 2009).…”

Capital Structure of Foreign Affiliates and the Investment Decision: Two Questions to Consider

“…with local partners as well as the perceived risk by foreign investors (Yamin, Golesorkhi 2010). In this case, it can also be viewed as an opposite relationship: as country differences increase, the incorporation of local partners is expected to reduce (for example Hennart and Zeng (2002), conclude that cross-cultural differences between partners reduce the longevity of foreign subsidiaries in the US, Jiang et al 2011 do the same for subsidiaries in China). Summing up, TCE can justify opposite views of the relationship between countries' differences and the participation of foreign affiliates.…”

Planning the Impossible with Lighting Solutions: A Strategy to Enter Brazil

“…To further determine the competitive intensity and attractiveness of the transportation and infrastructure sector (Jiang, Chu and Pan, 2011).Factors analyzed include the threat of substitute products, the threat of established rivals, the threat of new entrants, the bargaining power of suppliers, and the bargaining power of customers.…”