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Resource Dependence and Cross-border Constraint-absorption

A Study of Market Entry Strategies

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Abstract

  • 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.

  • 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.

  • 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.

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  1. College of Business and Economics, West Virginia University, Morgantown, USA

    Jun Xia

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  1. Jun Xia
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Correspondence to Jun Xia.

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Xia, J. Resource Dependence and Cross-border Constraint-absorption. Manag Int Rev 50, 155–183 (2010). https://doi.org/10.1007/s11575-010-0030-7

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