01-04-2010 | Research Article
Resource Dependence and Cross-border Constraint-absorption
A Study of Market Entry Strategies
Published in: Management International Review | Issue 2/2010
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Abstract
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This study applies resource dependence theory to understand the adoption of cross-border constraint-absorption strategies by firms. I examine how trade dependence drives these strategies in the form of interindustry mergers and acquisitions, joint ventures, and strategic alliances in U.S. manufacturing industries.
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Based on panel data between 1995 and 2000, results suggest that resource dependence theory provides a useful framework for predicting the adoption of various constraint-absorption strategies in an industry in a foreign country. Over time, however, the effect of trade dependence erodes.
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This paper also finds that the within-form imitation effect and the cross-form spillover effect diminish the impact of trade dependence on subsequent entry decisions.