Host Country Network, Industry Experiences, and International Alliance Formation: Experience from the Venture Capital Industry

Journal of World Business, 51(2): 264-277 (2016)

14 Pages Posted: 5 Feb 2016 Last revised: 22 Nov 2017

See all articles by Jing Zhang

Jing Zhang

Old Dominion University

Amir Pezeshkan

University of Baltimore

Date Written: 2016

Abstract

Integrating resource dependence and social network theories, we investigate how foreign firms’ position in alliance network in host country influences their further allying with firms from the host and home countries. We introduce network centrality as a factor that influences two competing forces in alliance formation: willingness and attractiveness. Furthermore, we argue that foreign firms suffering from a low network centrality may find it easier to enhance their network position if they have industry experience. Our analysis of data on US venture capital firms’ investment in China supports our theoretical framework. Theoretical and managerial implications of our findings are discussed.

Keywords: International alliance formation; Network centrality; Venture capital; Industry experience; Resource dependence theory; Social network theory

Suggested Citation

Zhang, Jing and Pezeshkan, Amir, Host Country Network, Industry Experiences, and International Alliance Formation: Experience from the Venture Capital Industry (2016). Journal of World Business, 51(2): 264-277 (2016), Available at SSRN: https://ssrn.com/abstract=2727405

Jing Zhang (Contact Author)

Old Dominion University ( email )

Norfolk, VA 23529-0222
United States

Amir Pezeshkan

University of Baltimore ( email )

1420 N. Charles Street
Baltimore, MD 21201
United States

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