IDEAS home Printed from https://ideas.repec.org/a/inm/ororsc/v15y2004i2p173-185.html
   My bibliography  Save this article

The Institutional Effects on Strategic Alliance Partner Selection in Transition Economies: China vs. Russia

Author

Listed:
  • Michael A. Hitt

    (Mays Business School, Texas A&M University, College Station, Texas 77843-4221)

  • David Ahlstrom

    (Department of Management, The Chinese University of Hong Kong, Shatin, NT Hong Kong)

  • M. Tina Dacin

    (Queen's School of Business, Queen's University, Kingston, Ontario, Canada K7L 3N6)

  • Edward Levitas

    (School of Business, University of Wisconsin-Milwaukee, Milwaukee, Wisconsin 53211)

  • Lilia Svobodina

    (St. Petersburg University of Economics and Finance, 21 Sadovaya Str., St. Petersburg 191023, Russia)

Abstract

China and Russia represent major economies in transition from command economies, yet their paths to the market have differed greatly. Their divergent approaches have helped create distinct institutional environments. This study focuses on a particularly important strategic decision firms face—alliance partner selection. The study's results suggest that China's more stable and supportive institutional environment has helped Chinese firms take a longer-term view of alliance partner selection, focusing more on the potential partner's intangible assets along with technological and managerial capabilities. In contrast, the less stable Russian institutional environment has influenced Russian managers to focus more on the short term, selecting partners that provide access to financial capital and complementary capabilities so as to enhance their firms—ability to weather that nation's turbulent environment. This study contributes to knowledge about the influence of the institutional environment on alliance partner selection decisions for firms domiciled in transition (and emerging) economies.

Suggested Citation

  • Michael A. Hitt & David Ahlstrom & M. Tina Dacin & Edward Levitas & Lilia Svobodina, 2004. "The Institutional Effects on Strategic Alliance Partner Selection in Transition Economies: China vs. Russia," Organization Science, INFORMS, vol. 15(2), pages 173-185, April.
    • Handle: RePEc:inm:ororsc:v:15:y:2004:i:2:p:173-185
    DOI: 10.1287/orsc.1030.0045
    as

    Download full text from publisher

    File URL: https://dx.doi.org/10.1287/orsc.1030.0045
    Download Restriction: no
    File URL: https://libkey.io/10.1287/orsc.1030.0045?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Wright, Mike & Filatotchev, Igor & Buck, Trevor & Bishop, Kate, 2002. "Foreign partners in the Former Soviet Union," Journal of World Business, Elsevier, vol. 37(3), pages 165-179, October.
    2. Prakash Loungani & Paolo Mauro, 2001. "Capital Flight from Russia," The World Economy, Wiley Blackwell, vol. 24(5), pages 689-706, May.
    3. Chung-Ming Lau & David K Tse & Nan Zhou, 2002. "Institutional Forces and Organizational Culture in China: Effects on Change Schemas, Firm Commitment and Job Satisfaction," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(3), pages 533-550, September.
    4. Witold J. Henisz & Bennet A. Zelner, 2001. "The Institutional Environment for Telecommunications Investment," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 10(1), pages 123-147, March.
    5. Albert N. Link & John T. Scott, 2013. "Introduction," Science, Technology, and Innovation Policy, in: Bending the Arc of Innovation: Public Support of R&D in Small, Entrepreneurial Firms, chapter 1, pages 1-5, Palgrave Macmillan.
    6. Buck, Trevor & Filatotchev, Igor & Nolan, Peter & Wright, Mike, 2000. "Different paths to economic reform in Russia and China: causes and consequences," Journal of World Business, Elsevier, vol. 35(4), pages 379-400, January.
    7. Klaus Uhlenbruck & Klaus E. Meyer & Michael A. Hitt, 2003. "Organizational Transformation in Transition Economies: Resource‐based and Organizational Learning Perspectives," Journal of Management Studies, Wiley Blackwell, vol. 40(2), pages 257-282, March.
    8. Oded Shenkar & Jiatao Li, 1999. "Knowledge Search in International Cooperative Ventures," Organization Science, INFORMS, vol. 10(2), pages 134-143, April.
    9. Jefferson, Gary H & Rawski, Thomas G & Yuxin, Zheng, 1992. "Growth, Efficiency, and Convergence in China's State and Collective Industry," Economic Development and Cultural Change, University of Chicago Press, vol. 40(2), pages 239-266, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yadong Luo & Huan Zhang & Juan Bu, 2019. "Developed country MNEs investing in developing economies: Progress and prospect," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 633-667, June.
    2. Lau, Chung-Ming & Yiu, Daphne W. & Yeung, Ping-Kwong & Lu, Yuan, 2008. "Strategic orientation of high-technology firms in a transitional economy," Journal of Business Research, Elsevier, vol. 61(7), pages 765-777, July.
    3. Lau, Chung-Ming, 2011. "Team and organizational resources, strategic orientations, and firm performance in a transitional economy," Journal of Business Research, Elsevier, vol. 64(12), pages 1344-1351.
    4. Mike Wright & Igor Filatotchev & Robert E. Hoskisson & Mike W. Peng, 2005. "Strategy Research in Emerging Economies: Challenging the Conventional Wisdom," Journal of Management Studies, Wiley Blackwell, vol. 42(1), pages 1-33, January.
    5. Jing Yang & Frank Tipton & Jiatao Li, 2011. "A review of foreign business management in China," Asia Pacific Journal of Management, Springer, vol. 28(3), pages 627-659, September.
    6. Ahlstrom, David & Levitas, Edward & Hitt, Michael A. & Dacin, M. Tina & Zhu, Hong, 2014. "The three faces of China: Strategic alliance partner selection in three ethnic Chinese economies," Journal of World Business, Elsevier, vol. 49(4), pages 572-585.
    7. Kalotay, Kalman, 2008. "Russian transnationals and international investment paradigms," Research in International Business and Finance, Elsevier, vol. 22(2), pages 85-107, June.
    8. Henri A. Schildt & Markku V.J. Maula & Thomas Keil, 2005. "Explorative and Exploitative Learning from External Corporate Ventures," Entrepreneurship Theory and Practice, , vol. 29(4), pages 493-515, July.
    9. Abasov, Muzaffar, 2017. "Comparison of Chinese reform experience with other transition economies (in the example of Russia)," MPRA Paper 79841, University Library of Munich, Germany.
    10. Carlo Cambini & Yossi Spiegel, 2016. "Investment and Capital Structure of Partially Private Regulated Firms," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 25(2), pages 487-515, April.
    11. Kristin J. Forbes, 2007. "The Microeconomic Evidence on Capital Controls: No Free Lunch," NBER Chapters, in: Capital Controls and Capital Flows in Emerging Economies: Policies, Practices, and Consequences, pages 171-202, National Bureau of Economic Research, Inc.
    12. Buckley, Peter J. & Cross, Adam & De Mattos, Claudio, 2015. "The principle of congruity in the analysis of international business cooperation," International Business Review, Elsevier, vol. 24(6), pages 1048-1060.
    13. Chen, Aimin, 1998. "Inertia in reforming China's state-Owned enterprises: The case of Chongqing," World Development, Elsevier, vol. 26(3), pages 479-495, March.
    14. Holz, Carsten A., 2006. "New capital estimates for China," China Economic Review, Elsevier, vol. 17(2), pages 142-185.
    15. Toru Yoshikawa & Lai Si Tsui-Auch & Jean McGuire, 2007. "Corporate Governance Reform as Institutional Innovation: The Case of Japan," Organization Science, INFORMS, vol. 18(6), pages 973-988, December.
    16. Seokbeom Kwon & Jan Youtie & Alan Porter & Nils Newman, 2024. "How does regulatory uncertainty shape the innovation process? Evidence from the case of nanomedicine," The Journal of Technology Transfer, Springer, vol. 49(1), pages 262-302, February.
    17. Li, Dan, 2013. "Multilateral R&D alliances by new ventures," Journal of Business Venturing, Elsevier, vol. 28(2), pages 241-260.
    18. Dedi Hadian, 2017. "The Relationship Organizational Culture and Organizational Commitment on Public Service Quality; Perspective Local Government in Bandung, Indonesia," International Review of Management and Marketing, Econjournals, vol. 7(1), pages 230-237.
    19. Andrews, Matt & Pritchett, Lant & Woolcock, Michael, 2013. "Escaping Capability Traps Through Problem Driven Iterative Adaptation (PDIA)," World Development, Elsevier, vol. 51(C), pages 234-244.
    20. Li, Huagang, 1999. "State factories in transition--openness, competition, and productivity," Journal of Development Economics, Elsevier, vol. 58(2), pages 429-462, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ororsc:v:15:y:2004:i:2:p:173-185. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.