TY - JOUR
T1 - Formation of cross-border corporate strategic alliances
T2 - The roles of trust and cultural, institutional, and geographical distances
AU - Jha, Anand
AU - Kim, Young Jun
AU - Gutierrez-Wirsching, Sandra
N1 - Publisher Copyright:
© 2018 Elsevier B.V.
PY - 2019/3
Y1 - 2019/3
N2 - We investigate the effects of four macro variables (trust and cultural, institutional, and geographical distances) on the propensity to form a strategic alliance. From a set of 26 countries, we construct 315 country pairs over the period from 1996 to 2004. We collect our data from the SDC platinum database that identifies how many cross-border strategic alliances occurred between the firms in the country pairs in each year. For each country pair we construct measurements for the macro variables. Then in a multivariate framework, we examine their effects on the number of cross-border alliances. We find that the cross-border alliances are more likely to occur between firms from countries that have higher trust and shorter cultural and geographical distances—the institutional distance does not have an effect. Additional tests show that greater trust lessens the adverse effect of geographical distance, but a shorter cultural distance does not.
AB - We investigate the effects of four macro variables (trust and cultural, institutional, and geographical distances) on the propensity to form a strategic alliance. From a set of 26 countries, we construct 315 country pairs over the period from 1996 to 2004. We collect our data from the SDC platinum database that identifies how many cross-border strategic alliances occurred between the firms in the country pairs in each year. For each country pair we construct measurements for the macro variables. Then in a multivariate framework, we examine their effects on the number of cross-border alliances. We find that the cross-border alliances are more likely to occur between firms from countries that have higher trust and shorter cultural and geographical distances—the institutional distance does not have an effect. Additional tests show that greater trust lessens the adverse effect of geographical distance, but a shorter cultural distance does not.
KW - Cultural distance
KW - Geographical distances trust
KW - Institutional distance
KW - Strategic alliance
KW - Transaction cost
UR - http://www.scopus.com/inward/record.url?scp=85055891721&partnerID=8YFLogxK
U2 - 10.1016/j.jbef.2018.10.003
DO - 10.1016/j.jbef.2018.10.003
M3 - Article
AN - SCOPUS:85055891721
SN - 2214-6350
VL - 21
SP - 22
EP - 38
JO - Journal of Behavioral and Experimental Finance
JF - Journal of Behavioral and Experimental Finance
ER -