Strategic Management Journal · 2010 · 207 citations · 76 references
ManagementStrategic ManagementStrategyForeign Direct InvestmentInternational TradeStrategic AlliancesAlliance ManagementAlliance TerminationCross-border AlliancesInternational Strategic AlliancesPartner SelectionResource ComplementarityAlliance DurabilityCross-border PartnershipsInternational AlliancesMutual DependenceMutual DependencyPartner DependenceResource Dependence Analysis
Resource dependence theory frames cross‑border alliances as responses to environmental and partner dependencies. The study tests whether alliance survival adapts to both environmental and partner dependencies independently and jointly. Across a longitudinal sample of cross‑border alliances, mutual trade dependence with the host country increases survival, partner substitutability lowers it, repeated partnership boosts it, and mutual dependence mitigates the negative impact of substitutability, confirming resource dependence theory as a useful framework. © 2010 John Wiley & Sons, Ltd.
Abstract Drawing on the resource dependence perspective, this study suggests that alliance survival is an adaptive response to both environmental dependence and partner dependence independently and jointly. Based on a sample of cross‐border alliances formed and terminated by local and foreign firms in a longitudinal setting, the results suggest that the mutual trade dependence between a home country and a host country is positively related to the survival of cross‐border alliances in the host country. Whereas partner substitutability reduces the probability of alliance survival, repeated partnership increases the probability. Moreover, mutual trade dependence reduces the negative effect of partner substitutability on alliance survival. The findings support the idea that resource dependence theory provides an important framework for the study of cross‐border alliances. Copyright © 2010 John Wiley & Sons, Ltd.
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