Host Country Network, Experiences, and International Alliances Formation in Emerging Markets
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Citation of Original PublicationZhang, J., & Pezeshkan, A. (October 20, 2014). "Host Country Network, Experiences, and International Alliances Formation in Emerging Markets". Academy of Management Proceedings, 2014, 1, 16087.
We theorize that a foreign firm’s position in alliance networks in a host country and its experience in the industry in general and in the host country in particular, jointly influences its attractiveness and willingness to form strategic partnership with firms from the home and host country for different reasons. Through a longitudinal analysis of a population of U.S. venture capital (VC) firms that invested in mainland China during 1997 and 2010, we find that their network centrality in China has an inverted U-shaped relationship with the likelihood of syndication with Chinese/the other U.S. VC firms. Moreover, their experience moderates this relationship. While their general experience in the VC industry moderates their partnership with the other U.S. firms, their host country experience moderates their partnership with Chinese firms.