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Article
Publication date: 9 August 2023

Ignacio Castro-Abancéns, Cristóbal Casanueva and Ángeles Gallego

Multinational enterprises (MNEs) establish a wide range of alliances to access the critical resources that they may need at any one time. Although inter-organizational…

Abstract

Purpose

Multinational enterprises (MNEs) establish a wide range of alliances to access the critical resources that they may need at any one time. Although inter-organizational relationships (IORs) constitute the channels through which social capital flows, MNEs should consider which mechanisms or characteristics of the relations facilitate their actual mobilization.

Design/methodology/approach

A definition of alliance types yielded the parameters for an ordinary least squares regression of a sample from top global-reach MNEs from the airline industry.

Findings

The results showed that certain kind of alliances favored the actual mobilization of social capital.

Practical implications

Managers of MNEs must select the type of IOR taking into account the objective they pursue and the type of activity they will include.

Originality/value

Analyzing the factors that influence the degree of mobilization of social capital and how MNEs actually use the resources of the partners require the establishment of a theoretical framework and the development of empirical evidence.

Propósito

las Empresas Multinacionales (MNEs) establecen una amplia gama de alianzas para acceder a los recursos críticos externos que puedan necesitar en cualquier memento. Las MNEs deben considerar qué mecanismos o características de las relaciones facilitan su movilización real.

Diseño/metodología/enfoque

una definición de los tipos de alianza produjo los parámetros para una regresión de mínimos cuadrados ordinarios de una muestra de las principales MNEs de alcance global de la industria de las aerolíneas.

Resultados

Los resultados mostraron que ciertos tipos de alianzas favorecieron la movilización real del capital social.

Originalidad/valor

Analizar los factores que influyen en el grado de movilización del capital social y cómo las MNEs utilizan en la práctica los recursos de sus socios, requiere del establecimiento de un marco teórico y el desarrollo de evidencia empírica.

Article
Publication date: 13 April 2023

Luis Miguel Bolivar, Cristóbal Casanueva and Ignacio Castro Abancéns

Multinational enterprises (MNEs) strive to expand into new markets either by exploiting their resource base or by gaining access to partner companies that own the required…

Abstract

Purpose

Multinational enterprises (MNEs) strive to expand into new markets either by exploiting their resource base or by gaining access to partner companies that own the required resources. Thus, companies face the compete–cooperate–coopete decision. The purpose of this study is to determine the effect of MNEs’ networks of interorganisational alliances, and their interaction with resource ownership, and market attractiveness, on the choice of international expansion modes, whether they are sole venture (competitive) or collaboration agreements (cooperative) or both (coopetitive).

Design/methodology/approach

A biprobit model is used to analyse more than 50,000 new international operations by 164 MNEs in a five-year window. A moderation analysis is carried out to reveal the interaction between network centrality, resource ownership and market size.

Findings

The results show the extent to which the competitive–collaborative contradictory forces attenuate each other in different market scenarios. This study’s contribution advances the resolution of the resource allocation dilemma by recognising the conditions for the selection of each expansion mode: sole venture, cooperation and coopetition.

Originality/value

Mainstream international business theory claims that firm’s own resources and transaction outcomes are generally sufficient to explain their international expansion decisions, whereas network and social capital theories focus on the role of relationships and network embeddedness. Both perspectives seem to neglect the fact that firms frequently develop both factors simultaneously. This study bridges these perspectives and reveals the interplay between resource ownership, alliance network centrality and market size for MNEs’ expansion mode choice.

Details

Multinational Business Review, vol. 31 no. 2
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 31 March 2021

Luis Miguel Bolivar, Ignacio Castro-Abancéns, Cristóbal Casanueva and Angeles Gallego

The purpose of this study is to examine how access and mobilisation of network resources influence a firm's performance. It has been established that alliance portfolio (AP…

Abstract

Purpose

The purpose of this study is to examine how access and mobilisation of network resources influence a firm's performance. It has been established that alliance portfolio (AP) network parameters shape the access to network resources; however, resource access understood as value creation differs from resource mobilisation understood as value capture. Hence, the paper contributes towards the comprehension of AP performance by examining the extent to which a firm's level of network resource mobilisation (NRM) plays a role in improving financial performance and how this strategy conditions the benefits obtained from a firm's AP.

Design/methodology/approach

This study employs an interorganisational network approach to describe the APs of firms; subsequently, it examines how AP network parameters and resource mobilisation determine financial performance. To this end, sequential multiple regression models are applied to a sample from the Top International Airlines database, covering 135 portfolios that correspond to 1117 codeshare partnerships.

Findings

The analyses show that the NRM level has an inverted U-shaped relationship with revenue performance, thereby revealing the limitations and considerations in the strategic alliance strategy. In addition, the authors show how the resource mobilisation decision moderates the faculty of AP parameters to influence a firm's financial performance, thereby exposing the nuanced relationship between AP size, diversity and redundancy. The findings convey strategic and practical implications for managers regarding how to capture value from their APs.

Practical implications

The findings suggest the need for NRM to form part of a firm's AP management capability, so that, by acquiring superior strategic knowledge in NRM, the firm is able to extract value from its AP through the optimal exploitation of complementary assets.

Originality/value

Previous research has highlighted the multidimensional nature of APs at the theoretical level; however, no simultaneous empirical analysis of various AP parameters has yet been produced. The research empirically analyses an AP network and how its parameters affect financial performance in the presence of a resource mobilisation strategy. Not only do the authors introduce the analysis of the curvilinear relationship between the level of NRM and a firm's performance, but also of its role in advancing the AP literature.

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