Resumen de Domestic alliance network to attract foreign partners: : Evidence from international joint ventures in China
Weilei (Stone) Shi, Sunny Li Sun, Brian C. Pinkham, Mike W. Peng
Partner selection is a critical issue in building international joint ventures (IJVs). We argue that foreign firms are more likely to select local firms with unique network structural advantages within a local alliance network. We frame structural advantages as two network position traits: centrality and brokerage. Specifically, network centrality acts as a stronger network trait than brokerage in attracting foreign IJV partners. However, such a relationship may be moderated by foreign firms� local experience and perceived capabilities. We contend that when foreign firms have a high level of local market experience and perceived capabilities, they may prefer a local broker over a centrally located local firm. Data on the domestic alliance network in China�s electronics and information technology (IT) industries largely support our hypotheses. We conclude that as foreign investors become strategic insiders, they may not only seek a local partner�s capability attributes, but also more critically pay attention to a local partner�s domestic network.
