Choosing international linkage strategies in electronics industry. The role of multinational experience

Davide Castellani, University of Urbino
Antonello Zanfei, University of Urbino

Abstract

This paper examines how different aspects of multinational experience affect the choice of international linkage strategy. Integrating transaction cost and dynamic efficiency considerations, we empirically test the determinants of the choice between acquisitions, joint ventures, and strategic alliances for the world’s largest electronics corporations in 1993-1997. We show that “country specific experience” increases the probability of commitment-intensive linkage modes. We also find a positive effect on strategic alliances caused by “variety experience”, deriving from the heterogeneity of international contexts, and by “internationalisation experience” reflecting overall involvement in international markets on strategic alliances.

JEL classification: F23, L22, O33