ePrints

Foreign Ownership Share and Strategic Alliance Formation: The Larger the Better?

Lookup NU author(s): Dr Jungho KimORCiD

Downloads

Full text for this publication is not currently held within this repository. Alternative links are provided below where available.

Abstract

This study investigates how a firm’s foreign ownership share influences its likelihood of strategic alliance formation, by integrating predictions of the resource-based view into those of transaction cost economics. We hypothesize that a moderate level of foreign ownership share increases the likelihood of alliance formation, indicating a foreign-owned firm’s possession of qualified resources; however, high foreign ownership share is negatively associated with this likelihood due to an increased risk of opportunism. By analyzing a unique panel data set of Korean firms over the period 2006–2016, we find that foreign ownership share has an inverted U-shaped relationship with the likelihood of strategic alliance formation, as expected. We also find that the negative effect of high levels of foreign ownership share on strategic alliance formation is relatively greater for firms with higher levels of intangible assets or firms operating in high-technology industries.

Publication metadata

Author(s): Cho Y, Kim J

Publication type: Conference Proceedings (inc. Abstract)

Publication status: Published

Conference Name: Academy of Management Conference (AOM 2019)

Year of Conference: 2019

Print publication date: 01/08/2019

Online publication date: 01/08/2019

Acceptance date: 01/06/2019

ISSN: 0065-0668

Publisher: Academy of Management

URL: https://doi.org/10.5465/AMBPP.2019.11370abstract

DOI: 10.5465/AMBPP.2019.11370abstract

Share