search query: @author Chi, T. / total: 4
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| Author: | Chi, T. McGuire, D. J. |
| Title: | Collaborative ventures and value of learning: integrating the transaction cost and stratategic option perspectives on the choice of market entry modes. |
| Journal: | Journal of International Business Studies
1996 : VOL. 27:2, p. 285-307 |
| Index terms: | JOINT BUSINESS VENTURES MULTINATIONAL COMPANIES STRATEGIC MANAGEMENT TRANSACTION COSTS |
| Language: | eng |
| Abstract: | The paper employs a simple stochastic model to investigate how transaction cost and strategic option considerations interact to influence a firm's evaluation of collaborative venturing as a market entry mode. After demonstrating how uncertainty about the market and about the potential partner can add to the value of a collaborative venture, the paper explicates a condition under which the option to acquire or sell out generates a positive economic value for both of the partners. The interaction of transaction cost and strategic option considerations is then examined, and a number of testable hyphoteses are proposed based on the theoretical analyses of the paper. The main contribution of the framework is that it allows a dynamic assessment of CVs and the transaction cost problems to which they may be subject. |
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