This paper examines the choice of mode for a multinational enterprise and a local firm to exploit their complementary capabilities. We develop a combined real options and game-theoretic model of modal choice by incorporating a range of factors drawn from the dynamic capabilities theory and...

This paper employs a simple stochastic model to investigate how transaction cost and strategic option considerations interact to influence a firm's evaluation of collaborative venturing as a market entry mode. After demonstrating how uncertainty about the market and about the potential partner...

This study investigates the effect of transaction cost considerations on the apportionment of residual bearing, and the assignment of managerial control between two firms involved in the exchange of business know-how. Data were collected from contractual agreements between multinational...

This paper applies a comparative institutional perspective to the organizational design called matrix structure. After discussing the motivations for a multidimensional form of organization, the paper compares the transaction cost characteristics of the matrix (MX-form) structure with those of...

This paper develops and tests a theoretical model of the structural choice by multinational corporations (MNCs). The model draws on three research streams: the contingency framework, integration-responsiveness (IR) framework, and organizational economics. Insights from the three streams of work...

This paper studies the problem of contracting between two firms when they try to exploit their complementary resources in a collaborative venture (CV), but their performance in the CV cannot be precisely verified by the other party or by a third-party arbiter. Using a mathematical model that...

Recent changes in the legal environment faced by US corporations suggest that the shareholder-manager conflict of interest, and the effectiveness of mechanisms to narrow this divergence, are issues of continuing importance. This study examines the linkages between institutional, market and legal...