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The Structuring of Interfirm Exchanges in Business Know-How: Evidence from International Collaborative Ventures

✍ Scribed by Tailan Chi; Thomas W. Roehl


Publisher
John Wiley and Sons
Year
1997
Tongue
English
Weight
151 KB
Volume
18
Category
Article
ISSN
0143-6570

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✦ Synopsis


This study investigates the effect of transaction cost considerations on the apportionment of residual bearing, and the assignment of managerial control between two ®rms involved in the exchange of business know-how. Data were collected from contractual agreements between multinational enterprises and indigenous ®rms that formed collaborative ventures in developing countries. A simultaneous-equation model was employed to test hypotheses that were derived under a theoretical framework based on the new institutional economics. The empirical results are supportive of the hypotheses.