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

Author

Listed:
  • Tieying Yu

    (Management and Organization Department, Carroll School of Management, Boston College, Chestnut Hill, USA)

  • Mohan Subramaniam

    (Management and Organization Department, Carroll School of Management, Boston College, Chestnut Hill, USA)

  • Albert A Cannella Jr

    (Arizona State University, Department of Management, Tempe, USA.)

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.

Suggested Citation

  • Tieying Yu & Mohan Subramaniam & Albert A Cannella Jr, 2013. "Competing globally, allying locally: Alliances between global rivals and host-country factors," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(2), pages 117-137, February.
    • Handle: RePEc:pal:jintbs:v:44:y:2013:i:2:p:117-137
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    Citations

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    Cited by:

    1. Lucio Fuentelsaz & Elisabet Garrido & Juan P. Maicas, 2015. "Incumbents, technological change and institutions: How the value of complementary resources varies across markets," Strategic Management Journal, Wiley Blackwell, vol. 36(12), pages 1778-1801, December.
    2. Canan Mutlu & Wu Zhan & Mike Peng & Zhiang Lin, 2015. "Competing in (and out of) transition economies," Asia Pacific Journal of Management, Springer, vol. 32(3), pages 571-596, September.
    3. Anne-Sophie Fernandez & Paul Chiambaretto & Mathieu Chauvet & Juliane Engsig, 2021. "Why do MNEs both make and coopete for innovation?," Post-Print hal-03514740, HAL.
    4. Kotler, Philip & Manrai, Lalita A. & Lascu, Dana-Nicoleta & Manrai, Ajay K., 2019. "Influence of country and company characteristics on international business decisions: A review, conceptual model, and propositions," International Business Review, Elsevier, vol. 28(3), pages 482-498.
    5. Fiona Kun Yao & Ming-Jer Chen & Jiatao Li & Danielle Combs & Qiang Li, 2024. "A review of 50 years of research since Knickerbocker (1973): competitive dynamics in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(5), pages 522-550, July.
    6. Fernandez, Anne-Sophie & Chiambaretto, Paul & Chauvet, Mathieu & Engsig, Juliane, 2021. "Why do MNEs both make and coopete for innovation?," Technovation, Elsevier, vol. 106(C).
    7. Tang, Ryan W. & Buckley, Peter J., 2022. "Outward foreign direct investment by emerging market multinationals: The directionality of institutional distance," Journal of Business Research, Elsevier, vol. 149(C), pages 314-326.
    8. Runhui Lin & Yuan Gui & Zaiyang Xie & Lu Liu, 2019. "Green Governance and International Business Strategies of Emerging Economies’ Multinational Enterprises: A Multiple-Case Study of Chinese Firms in Pollution-Intensive Industries," Sustainability, MDPI, vol. 11(4), pages 1-32, February.
    9. Amankwah-Amoah, Joseph, 2020. "Talent Management and Global Competition for Top Talent: A Co-Opetition-Based Perspective," MPRA Paper 101113, University Library of Munich, Germany.
    10. Mohan Subramaniam, 2020. "Digital ecosystems and their implications for competitive strategy," Journal of Organization Design, Springer;Organizational Design Community, vol. 9(1), pages 1-10, December.
    11. Wonsang Ryu & Jeffrey J. Reuer & Thomas H. Brush, 2020. "The effects of multimarket contact on partner selection for technology cooperation," Strategic Management Journal, Wiley Blackwell, vol. 41(2), pages 267-289, February.
    12. Subramaniam, Mohan & Iyer, Bala & Venkatraman, Venkat, 2019. "Competing in digital ecosystems," Business Horizons, Elsevier, vol. 62(1), pages 83-94.
    13. Craig C. Julian, 2018. "The theoretical underpinnings of government policy, turbulence and performance in the service sector: a conceptual framework," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 23(1), pages 1-11, March.
    14. Michela Matarazzo & Gabriele Barbaresco & Resciniti Riccardo, 2016. "Effects of cultural distance on foreign acquisitions: evidence from italian acquired firms," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2016(3), pages 159-181.
    15. Choi, Jeongho & Yeniyurt, Sengun, 2015. "Contingency distance factors and international research and development (R&D), marketing, and manufacturing alliance formations," International Business Review, Elsevier, vol. 24(6), pages 1061-1071.
    16. Gomes, Emanuel & Barnes, Bradley R. & Mahmood, Tehmina, 2016. "A 22 year review of strategic alliance research in the leading management journals," International Business Review, Elsevier, vol. 25(1), pages 15-27.
    17. Orcos, Raquel & Pérez-Aradros, Beatriz & Blind, Knut, 2018. "Why does the diffusion of environmental management standards differ across countries? The role of formal and informal institutions in the adoption of ISO 14001," Journal of World Business, Elsevier, vol. 53(6), pages 850-861.

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