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Resource Dependence and Cross-border Constraint-absorption

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  • Jun Xia

    (West Virginia University)

Abstract

This study applies resource dependence theory to understand the adoption of cross-border constraint-absorption strategies by firms. I examine how trade dependence drives these strategies in the form of interindustry mergers and acquisitions, joint ventures, and strategic alliances in U.S. manufacturing industries. Based on panel data between 1995 and 2000, results suggest that resource dependence theory provides a useful framework for predicting the adoption of various constraint-absorption strategies in an industry in a foreign country. Over time, however, the effect of trade dependence erodes. This paper also finds that the within-form imitation effect and the cross-form spillover effect diminish the impact of trade dependence on subsequent entry decisions.

Suggested Citation

  • Jun Xia, 2010. "Resource Dependence and Cross-border Constraint-absorption," Management International Review, Springer, vol. 50(2), pages 155-183, April.
    • Handle: RePEc:spr:manint:v:50:y:2010:i:2:d:10.1007_s11575-010-0030-7
    DOI: 10.1007/s11575-010-0030-7
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