Sub‐National Institutional Contingencies, Network Positions, and IJV Partner Selection

25 Pages Posted: 12 Oct 2012

See all articles by Weilei (Stone) Shi

Weilei (Stone) Shi

City University of New York (CUNY) - Narendra Paul Loomba Department of Management

Sunny Li Sun

Mike W. Peng

University of Texas at Dallas - Naveen Jindal School of Management

Date Written: November 2012

Abstract

The differences in sub‐national institutions within large and complex emerging economies have been increasingly noted. Drawing on social network theory and the institution‐based view, we argue that two network structural attributes of domestic firms – centrality and structural holes – have distinctive values in different sub‐national regions where institutional contexts differ widely. In addition, these sub‐national institutional contingencies influence the attractiveness of different network attributes to foreign entrants seeking international joint venture (IJV) partners. Specifically, in regions where the degree of marketization is high, centrally positioned domestic firms are more likely to be selected by foreign entrants as IJV partners. In regions where the degree of marketization is low, domestic broker firms are more attractive IJV partners. Results from the electrical and information technology industries in 18 provinces in China largely support our hypotheses.

Keywords: alliance network, emerging economies, IJV, institution‐based strategy, sub‐national region

Suggested Citation

Shi, Weilei (Stone) and Sun, Sunny Li and Peng, Mike W., Sub‐National Institutional Contingencies, Network Positions, and IJV Partner Selection (November 2012). Journal of Management Studies, Vol. 49, Issue 7, pp. 1221-1245, 2012, Available at SSRN: https://ssrn.com/abstract=2160665 or http://dx.doi.org/10.1111/j.1467-6486.2012.01058.x

Weilei (Stone) Shi (Contact Author)

City University of New York (CUNY) - Narendra Paul Loomba Department of Management ( email )

NY
United States

Mike W. Peng

University of Texas at Dallas - Naveen Jindal School of Management ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States

No contact information is available for Sunny Li Sun

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