Competing globally, allying locally: Alliances between global rivals and host-country factors

Abstract

An emerging literature highlights the relationship between competitive intensity and the likelihood that two rival firms will form an alliance. Placing this argument in an international context, we first suggest that the global competitive intensity between two rival multinationals positively affects the likelihood that they will ally in any host country. Additionally, we highlight how a number of host-country contextual factors moderate the relationship between global competitive intensity and alliance formation in a given host country. We test our hypotheses with a sample of 13 global automobile companies operating in 27 countries, and the results largely support our predictions.

Incumbents, technological change and institutions: How the value of complementary resources varies across markets

“…This result provides support for our Hypothesis 2. Similarly, Model 4 shows that, while political instability does are interesting from a theoretical point of view, the random effects model may be an appropriate alternative (Certo and Semadini, 2006;Yu, Subramaniam, and Canella, 2013). not have a direct significant impact on firm performance, it reduces the effect of complementary assets on performance in that its interaction term is negative.…”

“…A time‐invariant variable, the stock of complementary assets, is the basis of our first hypothesis. Extant literature argues that, in cases in which the time‐invariant variables are interesting from a theoretical point of view, the random effects model may be an appropriate alternative (Certo and Semadini, 2006; Yu, Subramaniam, and Canella, ).…”

Competing in (and out of) transition economies

“…Second, given our assumptions, we have not considered alternative scenarios, such as (1) the possible collaboration between the DF and the MNE (Williams & Du, 2014;Yu, Subramaniam, & Cannella, 2013), (2) the possibility that the MNE acquires the DF (Uhlenbruck, 2004), (3) the possibility that the DF buys the MNE's operations in the transition economy (Lin et al, 2009), and/or (4) the scenario that the DF may even acquire the MNE in its entirety . While our stylized and focused framework has allowed us to capture the essence of the dynamics between MNEs and DFs, rach above boundary conditions is a realistic scenario that needs to be explored in future work.…”

Cooperative or competitive in alliance formation: Alliance patterns with respect to rivals

“…Other approaches directly consider rivalry in alliances. For example, coopetition studies focus on alliances between competitors and explore the emergence (Gnyawali, He, & Madhavan, ; Yu, Subramaniam, & Cannella, ) or outcome (Park & Ungson, ; Tong & Reuer, ) of such alliances. Based on the literature on competitive dynamics, scholars have recently viewed strategic alliances as a type of competitive action and investigated how the strategic alliance of a particular firm influences the behaviour and performance of its rivals.…”