Title: Country-governance quality and signals in the alliance formation process: a meta-analytic approach

Authors: Oliver Rossmannek; Felix Bosch; Katharina Fink

Addresses: Albert-Ludwigs-University of Freiburg, Rempartstraße 16, 79098 Freiburg, Germany ' Albert-Ludwigs-University of Freiburg, Rempartstraße 16, 79098 Freiburg, Germany ' Albert-Ludwigs-University of Freiburg, Rempartstraße 16, 79098 Freiburg, Germany

Abstract: This meta-analysis examines how signals in the alliance formation process affect alliance network centrality. In the hypotheses, it is argued that the age of a firm and its technical capital help to increase its attractiveness and therefore its centrality. However, the value of signals in the alliance formation process is dependent on the quality of a firm's home country-governance (e.g., level of property protection or degree of corruption). The age of a firm represents a signal of trust, which is more important in countries with a low governance quality. In contrast, the technical capital of a firm signals an attractive resource endowment, which is more important in high governance countries. Overall, hypotheses are supported (in a meta-analysis of 85 independent studies). The study contributes to the literature by showing how home country institutions have severe effects on alliance strategies and the behaviour of multinational firms.

Keywords: strategic alliances; meta-analysis; firm age; technical capital; network centrality; institution-based view.

DOI: 10.1504/IJBE.2022.120337

International Journal of Business Environment, 2022 Vol.13 No.1, pp.60 - 87

Received: 09 Mar 2021
Accepted: 25 Jun 2021
Published online: 14 Jan 2022 *

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