DOMESTIC VERSUS CROSS-BORDER ALLIANCES: AN EXPLORATORY STUDY OF RELATIONSHIP DIFFERENCES
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International alliances predominate the literature (Terpstra and Simonin 1993), even though almost one-half ofstrategic alliancesformed by U.S. firms in the late 1980s involveddomestic partners (Cu/pan and Kostelac 1993). This study compares domestic and cross-border alliances in two areas: the structural framework (linkage, form, mode, coverage, and motive) and performance (perceived effectiveness) of the relationship. The findings indicate that though significant differences exist in the structural framework of domestic and cross-border alliances, these differences do not precipitate divergent levels o f relationship effectiveness. Alliances, regardless o f partner origin, appear effective at meeting the expectations created by such a cooperative venture.
Abstract
International alliances predominate the literature (Terpstra and Simonin 1993), even though almost one-half ofstrategic alliancesformed by U.S. firms in the late 1980s involveddomestic partners (Cu/pan and Kostelac 1993). This study compares domestic and cross-border alliances in two areas: the structural framework (linkage, form, mode, coverage, and motive) and performance (perceived effectiveness) of the relationship. The findings indicate that though significant differences exist in the structural framework of domestic and cross-border alliances, these differences do not precipitate divergent levels o f relationship effectiveness. Alliances, regardless o f partner origin, appear effective at meeting the expectations created by such a cooperative venture.