Interfirm Diversity, Organizational Learning, and Longevity in Global Strategic Alliances

Organizational theorists have correctly argued that the emergence and maintenance of robust cooperation between global strategic alliance partners is related to the diversity in the partners' characteristics. Yet previous research has failed to systematically delineate the important dimensions of interfirm diversity and integrate the dimensions into a unified framework of analysis. This paper develops a multilevel typology of interfirm diversity and focuses on organizational learning and adaptation as critical processes that dynamically moderate diversity's impact on alliance longevity and effectiveness.© 1991 JIBS. Journal of International Business Studies (1991) 22, 579–601

Understanding trust in international alliances

Many firms are discovering that formal contracts, while necessary, are not a substitute for informal understandings. Trust plays in important (often dominant) role in successful alliances, and managers often cite lack of trust as a key reason for failed alliances. This paper attemps to deepen our understanding of trust, by systematically examining the psychological, sociological, and economic components of trust, intercultural differences in the notion of trust, and the various mechanisms through which trust may be generated. A follow-up paper, "Building Trust in International Alliances," shows how partners can proactively manage an alliance relationship in order to develop trust.

Building trust in international alliances

Two facts stand out unambiguously in today's global business. One, international alliances are proliferating, underscoring the strategic importance managers increasingly attach to "competition through cooperation." Two, trust is key to successful international alliances. Together, these two facts point to the need to better understand trust, a task that was attempted in an earlier article (Parkhe, 1998). Yet such understanding, while necessary, is not sufficient. This article, the second of a two-part series, shows how partners can proactively manage an alliance relationship in order to develop trust. Toward this goal, the discussion includes trust generation through process-based, characteristic-based, and institutional-based mechanisms, which are to a significant degree within alliance managers' control. Managers must also be mindful of several critical features of alliance dynamics. These are described in some detail, as is the need to appropriately "calibrate" trust level in an alliance to the lifecycle stage of the alliance. With proper management attention, too much and too little trust can be avoided.

Importer Behavior: the neglected Counterpart of International Exchange

International exchange is a two-sided coin, involving exporters and importers. However, a systematic search of the academic literature reveals a striking imbalance: while exporter behavior has been extensively studied, importer behavior remains a largely neglected area of study, even though importers are playing an even more important (often dominant) role in consummating trade transactions. In this article, we assert that this neglect stems from two critical – but flawed – assumptions. The first is that exporters are the driving force behind international trade transactions, and the second is that importers follow the neoclassical economics theory of “rational choice” in international sourcing.We offer an integrated exporter/importer decision framework, a critical review and synthesis of extant studies of importer behavior, and suggestions for future research directions. Evidence shows that much international exchange is better conceptualized as buyer-coordinated importing rather than producer-initiated exporting. Furthermore, the revealed behavior of importers is different from what can be expected of them from the rational choice paradigm, and is messier than what is commonly assumed of them in the export management literature. From a cognitive perspective, our study also suggests that there may exist a fundamental behavioral difference between domestic and IB decisionmaking.© 1997 JIBS. Journal of International Business Studies (1997) 28, 495–530

Patterns in the Expansion of U.S. Banks' Foreign Operations

Combining foreign direct investment theory with data on 32 countries from the Federal Reserve Board, the study examines U.S. banks' patterns of foreign operations, including their levels of banking services and choice of organizational forms in host countries. Results generally supported predictions, but only in developed countries. The lack of support in rapidly growing markets of Asia and Latin America raises serious theoretical concerns, and presents fresh research opportunities into the global banking industry.© 1998 JIBS. Journal of International Business Studies (1998) 29, 359–388