Corporate collaborative activity: exploratory evidence on the determinants of vehicle choice

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    Abstract

    This exploratory study analyses the factors that affect the selection of a contract, alliance or joint venture for collaborative activity. The findings, based on a sample of 441 announcements made by UK firms, reveal that although no unequivocal support exists for either the agency- or transaction cost economics-based explanations of vehicle choice, the decision does appear to have a strategic element. In addition, the results suggest that while the three forms of inter-firm arrangement are often viewed as points on a continuum, the key decision relates to whether or not to establish a joint venture. In the light of these initial findings, future research might most usefully investigate decision-making of this type on a case-by-case basis, rather than attempting to induce pervasive explanations of the process.

    Original languageEnglish
    Pages (from-to)201-225
    Number of pages25
    JournalEuropean Journal of Finance
    Volume16
    Issue number3
    DOIs
    Publication statusPublished - 2010

    Keywords

    • joint venture
    • alliance
    • contract
    • collaboration
    • agency
    • transaction cost economics
    • INTERNATIONAL JOINT VENTURES
    • TRANSACTION-COST ECONOMICS
    • RESEARCH-AND-DEVELOPMENT
    • STRATEGIC ALLIANCES
    • INVESTMENT OPPORTUNITIES
    • EARNINGS ANNOUNCEMENTS
    • KNOWLEDGE TRANSFER
    • CAPITAL STRUCTURE
    • SUPPORT EXCHANGE
    • MARKET VALUATION

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