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The Cooperative Venture Formation Process: A Latent Variable Structural Modeling Approach

Author

Listed:
  • Claes Fornell

    (School of Business Administration, University of Michigan, Ann Arbor, Michigan 48109)

  • Peter Lorange

    (Norwegian School of Management, Oslo, Norway, N-1300)

  • Johan Roos

    (Norwegian School of Management, Oslo, Norway, N-1300)

Abstract

This article addresses management process issues for forming cooperative ventures with an increased likelihood of subsequent success. Based on Roos (1989) the cooperative venture formation process is conceptualized in terms of three theoretical constructs: the extent of sufficient "internal push" for the project, the breadth and depth of "analytical scope," and the strength of key "stakeholder support." These constructs are related to subsequent perceived performance. Data from sixty seven firms were collected and analyzed via latent variable structural modeling a partial least square (PLS). One key contribution of this article is the modeling approach to strategic formation process. It contributes to an existing, but not very well developed, theory regarding strategy formation processes. The PLS method used in this study is quite unique within strategy research. As such, it contributes to methodology development in the strategy research field. The main managerial implication is that the process by which a cooperative venture is formed should largely be seen as a step-by-step approach---not a discrete decision. If the three fundamentals discussed in the article are thoroughly addressed, we can up the ante for success during implementation and, therefore, subsequent performance.

Suggested Citation

  • Claes Fornell & Peter Lorange & Johan Roos, 1990. "The Cooperative Venture Formation Process: A Latent Variable Structural Modeling Approach," Management Science, INFORMS, vol. 36(10), pages 1246-1255, October.
    • Handle: RePEc:inm:ormnsc:v:36:y:1990:i:10:p:1246-1255
    DOI: 10.1287/mnsc.36.10.1246
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    2. Buckley, Peter J. & Cross, Adam & De Mattos, Claudio, 2015. "The principle of congruity in the analysis of international business cooperation," International Business Review, Elsevier, vol. 24(6), pages 1048-1060.
    3. Streukens, Sandra & Leroi-Werelds, Sara, 2016. "Bootstrapping and PLS-SEM: A step-by-step guide to get more out of your bootstrap results," European Management Journal, Elsevier, vol. 34(6), pages 618-632.
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    9. Ainuddin, R. Azimah & Beamish, Paul W. & Hulland, John S. & Rouse, Michael J., 2007. "Resource attributes and firm performance in international joint ventures," Journal of World Business, Elsevier, vol. 42(1), pages 47-60, March.
    10. Belaya, Vera & Hanf, Jon, 2016. "Conflict Resolution in Vertical Collaborations in the Agri-food Sector," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 7(1), pages 1-12, February.
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    12. Johan Wiklund & Holger Patzelt & Dean Shepherd, 2009. "Building an integrative model of small business growth," Small Business Economics, Springer, vol. 32(4), pages 351-374, April.
    13. Reinartz, Werner & Haenlein, Michael & Henseler, Jörg, 2009. "An empirical comparison of the efficacy of covariance-based and variance-based SEM," International Journal of Research in Marketing, Elsevier, vol. 26(4), pages 332-344.
    14. Claver-Cortés, Enrique & Pertusa-Ortega, Eva M. & Molina-Azorín, José F., 2012. "Characteristics of organizational structure relating to hybrid competitive strategy: Implications for performance," Journal of Business Research, Elsevier, vol. 65(7), pages 993-1002.
    15. Banerjee, Shantanu & Venaik, Sunil & Brewer, Paul, 2019. "Analysing corporate political activity in MNC subsidiaries through the integration-responsiveness framework," International Business Review, Elsevier, vol. 28(5), pages 1-1.
    16. van den Heuvel, Frank P. & Rivera, Liliana & van Donselaar, Karel H. & de Jong, Ad & Sheffi, Yossi & de Langen, Peter W. & Fransoo, Jan C., 2014. "Relationship between freight accessibility and logistics employment in US counties," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 91-105.
    17. Ringle, Christian M., 2006. "Segmentation for path models and unobserved heterogeneity: The finite mixture partial least squares approach," MPRA Paper 10734, University Library of Munich, Germany.
    18. Robson, Matthew J. & Paparoidamis, Nicholas & Ginoglu, Dimitrios, 2003. "Top management staffing in international strategic alliances: a conceptual explanation of decision perspective and objective formation," International Business Review, Elsevier, vol. 12(2), pages 173-191, April.
    19. Rezaei, Sajad, 2015. "Segmenting consumer decision-making styles (CDMS) toward marketing practice: A partial least squares (PLS) path modeling approach," Journal of Retailing and Consumer Services, Elsevier, vol. 22(C), pages 1-15.
    20. Helgesen, Øyvind & Ivar Håvold, Jon & Nesset, Erik, 2010. "Impacts of store and chain images on the “quality–satisfaction–loyalty process†in petrol retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 17(2), pages 109-118.
    21. Rafael Robina-Ramírez & Marcelo Sánchez-Oro & Mª Teresa Cabezas-Hernández & Margarita Calleja-Aldana, 2020. "Host and Guest Social Exchange in Developing Tourist Sites: The Case of the International Tagus Natural Park," Sustainability, MDPI, vol. 12(18), pages 1-18, September.
    22. Isabel Pizarro & Juan C.Real & M.Dolores de la Rosa, 2009. "The role of entrepreneurial culture and human capital in innovation," Working Papers 09.02, Universidad Pablo de Olavide, Department of Business Administration.
    23. Wynne W. Chin & Barbara L. Marcolin & Peter R. Newsted, 2003. "A Partial Least Squares Latent Variable Modeling Approach for Measuring Interaction Effects: Results from a Monte Carlo Simulation Study and an Electronic-Mail Emotion/Adoption Study," Information Systems Research, INFORMS, vol. 14(2), pages 189-217, June.
    24. Nakamura, Masao & Shaver, J. Myles & Yeung, Bernard, 1996. "An empirical investigation of joint venture dynamics: Evidence from U.S.-Japan joint ventures," International Journal of Industrial Organization, Elsevier, vol. 14(4), pages 521-541, June.
    25. Hsiu‐Yi Lin & Meng‐Hsiang Hsu, 2015. "Using Social Cognitive Theory to Investigate Green Consumer Behavior," Business Strategy and the Environment, Wiley Blackwell, vol. 24(5), pages 326-343, July.

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