Reciprocity in International Business: A Study of Telecommunications Alliances and Contracts

An examination of the relationships between JIT and financial performance

“…To address concerns that the data are likely to exhibit violations to the classical linear regression model assumptions of homoscedasticity and autocorrelation, a generalized least squares (GLS) cross-sectionally heteroscedastic and timewise autoregressive model (Kmenta, 1986) is estimated. This approach, which is frequently used in time-series studies (Droms and Walker, 1994;Hill and Phan, 1991;Kashlak et al, 1998;Krishnan and Largay, 2000), combines the assumptions made about cross-sectional observations (regression disturbances are mutually independent, but heteroscedastic) with those made about time-series (disturbances are autoregressive, but not heteroscedastic). The observations are subjected to a double transformation for removing both autocorrelation and heteroscedasticity, before applying the conventional ordinary least squares methodology (Kmenta, 1986, p. 509).…”

A quarter century of Culture's Consequences: a review of empirical research incorporating Hofstede's cultural values framework

“…However, Brouthers and Brouthers (2001) showed that investment risk moderated this relationship such that as risk increases, higher cultural distance is related to preferences for wholly owned entry modes rather than JVs. Also, as cultural distance increased, Japanese firms were more likely to choose greenfields (Anand and Delios, 1997) or wholly owned subsidiaries (Padmanabhan and Cho, 1996) over shared ownership; the tendency to choose licensing over JVs or wholly owned subsidiaries increased (Kim and Hwang, 1992); the tendency to choose a greenfield over an acquisition increased (Harzing, 2002); wholly owned subsidiaries were less preferred than either shared-equity ventures (Barkema and Vermeulen, 1998;Hennart and Larimo, 1998) or technology licensing (Arora and Fosfuri, 2000); the tendency to choose management-service contracts over franchising increased (Erramilli et al, 2002); a greater proportion of incentive-based compensation was used for subsidiary managers of host-country foreign affiliates (Roth and O'Donnell, 1996); equity JV partners were more likely to acquire an equal or majority (rather than minority) share (Pan, 1996;Erramilli et al, 1997); greater structural changes in alliance and contracts took place (Kashlak et al, 1998); firms engaged in less R&D (Richards and De Carolis, 2003); and a greater number of TMTs departed from US companies acquired by foreign firms (Krug and Nigh, 1998).…”

Developing a model of reciprocity in the importer–exporter relationship: The relative efficacy of economic versus social factors

“…Studies have found that reciprocity is influenced by cultural distance, economic nearness, country level risk, and governance mechanisms (Kashlak, Chandran, & Di Benedetto, 1998). It has also been found that perception of reciprocity influences customer's commitment to purchase especially in the eastern culture (Merrilees & Miller, 1999).…”