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The effect of alliance network diversity on multinational enterprise performance
Author(s) -
Goerzen Anthony,
Beamish Paul W.
Publication year - 2005
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.447
Subject(s) - alliance , multinational corporation , transaction cost , diversity (politics) , industrial organization , sample (material) , business , economic geography , structural equation modeling , economics , computer science , political science , finance , law , chemistry , chromatography , machine learning
This paper examines the impact of alliance network diversity on multinational enterprise (MNE) economic performance. We consider competing hypotheses derived, alternatively, from transaction cost theory and network theory. Using a latent variable structural equation modeling approach on a sample of 580 large MNEs, we find that MNEs with more diverse alliance networks experience lower economic performance on average than those with less diverse alliance networks. Copyright © 2005 John Wiley & Sons, Ltd.