Competition in Global Industries
01 Jun 1987-Journal of International Business Studies (Palgrave Macmillan UK)-Vol. 18, Iss: 2, pp 104-106
About: This article is published in Journal of International Business Studies.The article was published on 1987-06-01. It has received 348 citations till now. The article focuses on the topics: New business development & Competition (economics).
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TL;DR: In this paper, a measure of changes in alliance partners' technological capabilities, based on the citation patterns of their patent portfolios, is used to analyze changes in the extent to which partner firms' technological resources overlap as a result of alliance participation.
Abstract: This paper examines interfirm knowledge transfers within strategic alliances. Using a new measure of changes in alliance partners' technological capabilities, based on the citation patterns of their patent portfolios, we analyze changes in the extent to which partner firms' technological resources ‘overlap’ as a result of alliance participation. This measure allows us to test hypotheses from the literature on interfirm knowledge transfer in alliances, with interesting results: we find support for some elements of this ‘received wisdom’—equity arrangements promote greater knowledge transfer, and ‘absorptive capacity’ helps explain the extent of technological capability transfer, at least in some alliances. But the results also suggest limits to the ‘capabilities acquisition’ view of strategic alliances. Consistent with the argument that alliance activity can promote increased specialization, we find that the capabilities of partner firms become more divergent in a substantial subset of alliances.
3,355 citations
TL;DR: In this article, the authors review the history of the social scientific study of leadership and the prevailing theories of leadership that enjoy empirical support and identify the contributions of the trait, behavioral, contingency and neocharismatic paradigms and the results of empirical research on prevailing theories.
1,789 citations
Cites background from "Competition in Global Industries"
...Michael Porter’s books (Porter, 1985; 1986) are perhaps the most frequently used and best examples of this focus of scholarship....
[...]
TL;DR: In this article, the authors examined how external network ties determine a board's ability to contribute to the strategic decision-making process and found that the simple number of director appointments to other boards is not a good predictor of board performance.
Abstract: This study examines how external network ties determine a board's ability to contribute to the strategic decision making process. Although the simple number of director appointments to other boards...
1,117 citations
Cites methods from "Competition in Global Industries"
...We measured relatedness across four different strategic dimensions which have been studied extensively in the strategy literature (e.g., Kim, 1989; Porter, 1986 & 1998; Rumelt, 1974): First, board appointments related by product market were measured by developing a count variable equal to the…...
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TL;DR: This article decompose the institutional distance between the host and home countries into distances on the regulative, normative, and cognitive dimensions of institutions, and match these with firm-level attributes to produce propositions regarding host country selection and foreign market entry strategies.
Abstract: We draw from the recently developed construct of institutional distance to propose a framework that explains foreign direct investment by the multinational enterprise. We decompose the institutional distance between the host and home countries into distances on the regulative, normative, and cognitive dimensions of institutions, and match these with firm-level attributes to produce propositions regarding host country selection and foreign market entry strategies.
1,024 citations
Cites background from "Competition in Global Industries"
...In the case of the MNE, the level of global integration is determined by the structural characteristics of its industry (Kobrin, 1991; Porter, 1986), as well as home country characteristics (Duysters & Hagedoorn, 2001); the adopted strategy, in turn, will influence the choice of host market (Ohmae, 1985)....
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...MNE strategies have often been encapsulated as ranging from "global" to "multidomestic" (Ghoshal & Westney, 1993; Porter, 1986), or from high to low integration....
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...In the case of the MNE, the level of global integration is determined by the structural characteristics of its industry (Kobrin, 1991; Porter, 1986), as well as home country characteristics (Duysters & Hagedoorn, 2001); the adopted strategy, in turn, will influence the choice of host market (Ohmae,…...
[...]
TL;DR: A central theme of much of the recent literature on the strategy of the multinational corporation (MNC) is the increasingly important role played by subsidiary companies as contributors to the development of firm-specific advantages.
Abstract: A central theme of much of the recent literature on the strategy of the multinational corporation (MNC) is the increasingly important role played by subsidiary companies as contributors to the development of firm-specific advantages. Traditional academic models that viewed subsidiaries as either ‘market access’ providers or as recipients of the parent company’s technology transfers (Vernon, 1966) gave way in the 1980s to richer conceptualizations in which subsidiaries tapped into leading-edge ideas, undertook important research and development work, and became active participants in the formulation and implementation of strategy (Bartlett and Ghoshal, 1986; Hedlund, 1986; Gupta and Govindarajan, 1994). The generation of firm-specific advantages, correspondingly, shifted from being the sole concern of the parent company to a collective responsibility for the corporate network.
973 citations
Cites background from "Competition in Global Industries"
...At one end of the spectrum are ‘pure global’ industries (Porter, 1986) in which the subsidiary’s activities are integrated with the rest of the corporate network....
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References
More filters
TL;DR: In this paper, a measure of changes in alliance partners' technological capabilities, based on the citation patterns of their patent portfolios, is used to analyze changes in the extent to which partner firms' technological resources overlap as a result of alliance participation.
Abstract: This paper examines interfirm knowledge transfers within strategic alliances. Using a new measure of changes in alliance partners' technological capabilities, based on the citation patterns of their patent portfolios, we analyze changes in the extent to which partner firms' technological resources ‘overlap’ as a result of alliance participation. This measure allows us to test hypotheses from the literature on interfirm knowledge transfer in alliances, with interesting results: we find support for some elements of this ‘received wisdom’—equity arrangements promote greater knowledge transfer, and ‘absorptive capacity’ helps explain the extent of technological capability transfer, at least in some alliances. But the results also suggest limits to the ‘capabilities acquisition’ view of strategic alliances. Consistent with the argument that alliance activity can promote increased specialization, we find that the capabilities of partner firms become more divergent in a substantial subset of alliances.
3,355 citations
TL;DR: In this article, the authors review the history of the social scientific study of leadership and the prevailing theories of leadership that enjoy empirical support and identify the contributions of the trait, behavioral, contingency and neocharismatic paradigms and the results of empirical research on prevailing theories.
1,789 citations
TL;DR: In this article, the authors examined how external network ties determine a board's ability to contribute to the strategic decision-making process and found that the simple number of director appointments to other boards is not a good predictor of board performance.
Abstract: This study examines how external network ties determine a board's ability to contribute to the strategic decision making process. Although the simple number of director appointments to other boards...
1,117 citations
TL;DR: This article decompose the institutional distance between the host and home countries into distances on the regulative, normative, and cognitive dimensions of institutions, and match these with firm-level attributes to produce propositions regarding host country selection and foreign market entry strategies.
Abstract: We draw from the recently developed construct of institutional distance to propose a framework that explains foreign direct investment by the multinational enterprise. We decompose the institutional distance between the host and home countries into distances on the regulative, normative, and cognitive dimensions of institutions, and match these with firm-level attributes to produce propositions regarding host country selection and foreign market entry strategies.
1,024 citations
TL;DR: A central theme of much of the recent literature on the strategy of the multinational corporation (MNC) is the increasingly important role played by subsidiary companies as contributors to the development of firm-specific advantages.
Abstract: A central theme of much of the recent literature on the strategy of the multinational corporation (MNC) is the increasingly important role played by subsidiary companies as contributors to the development of firm-specific advantages. Traditional academic models that viewed subsidiaries as either ‘market access’ providers or as recipients of the parent company’s technology transfers (Vernon, 1966) gave way in the 1980s to richer conceptualizations in which subsidiaries tapped into leading-edge ideas, undertook important research and development work, and became active participants in the formulation and implementation of strategy (Bartlett and Ghoshal, 1986; Hedlund, 1986; Gupta and Govindarajan, 1994). The generation of firm-specific advantages, correspondingly, shifted from being the sole concern of the parent company to a collective responsibility for the corporate network.
973 citations