Title

Internal and External Networks: Balancing the Incentives to Collaborate with the Control Requirements of a Global Strategy

Document Type

Article

Publication/Presentation Date

5-2007

Academic Year

2007-2008

Abstract/Description

This paper suggests that balancing the collaboration incentives and the control requirements of a global strategy leads to an inverse U-shape relation between the internalization of value-added activities through subsidiaries and the intensity of collaboration. Statistical results using a negative binomial regression in a sample of 112 U.S. firms and 453 international alliances support this non-linear relationship.

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