The effect of nationalism on governance choices in cross-border collaborations

We examine how nationalism influences governance choice in cross-border collaborations. While nationalism has historically been within the purview of political scientists, we demonstrate its relevance to management scholars by theorizing how nationalist attitudes and behaviors among decision-makers...

Full description

Saved in:
Bibliographic Details
Main Authors: ERTUG, Gokhan, CUYPERS, Ilya R. P., DOW, Douglas, EDMAN, Jesper
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2024
Subjects:
Online Access:https://ink.library.smu.edu.sg/lkcsb_research/7190
https://ink.library.smu.edu.sg/context/lkcsb_research/article/8189/viewcontent/Effect_nationalism_governance_choices_pvoa_by_nc.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
Institution: Singapore Management University
Language: English
id sg-smu-ink.lkcsb_research-8189
record_format dspace
spelling sg-smu-ink.lkcsb_research-81892024-12-19T08:25:09Z The effect of nationalism on governance choices in cross-border collaborations ERTUG, Gokhan CUYPERS, Ilya R. P. DOW, Douglas EDMAN, Jesper We examine how nationalism influences governance choice in cross-border collaborations. While nationalism has historically been within the purview of political scientists, we demonstrate its relevance to management scholars by theorizing how nationalist attitudes and behaviors among decision-makers might shape strategic decisions about collaborations with foreign partners. Drawing on insights from the social psychology literature, we theorize how two attitudes commonly associated with nationalism, i.e., lower levels of trust and an unwillingness to work with foreigners, may increase decision-makers’ concerns about opportunistic behavior and invasiveness in cross-border collaborations. Integrating these insights into two key theories of governance choice, i.e., transaction cost economics (TCE) and resource dependence theory (RDT), we derive two competing effects of nationalism: TCE suggests that a heightened concern about opportunistic behavior will make equity alliances more preferable, whereas RDT predicts that a greater sensitivity to invasiveness would prioritize non-equity alliances. Examining 11,469 cross-border collaborations over a 25-year period, we find, in line with the RDT-based prediction, that firms from countries with stronger nationalist sentiments prefer non-equity alliances. We also find that cross-country dissimilarities and prior conflict between the firms’ home countries strengthen this negative association. Our findings advance research on cross-border collaborations by demonstrating why and when nationalism may influence governance mode choice. We also contribute to efforts to establish nationalism, specifically in the form of nationalist sentiments, as an important theoretical concept within the management literature. 2024-09-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/7190 info:doi/10.1177/01492063231172757 https://ink.library.smu.edu.sg/context/lkcsb_research/article/8189/viewcontent/Effect_nationalism_governance_choices_pvoa_by_nc.pdf http://creativecommons.org/licenses/by-nc/4.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Nationalism alliances collaborations cross border governance Business Law, Public Responsibility, and Ethics International Business Strategic Management Policy
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Nationalism
alliances
collaborations
cross border
governance
Business Law, Public Responsibility, and Ethics
International Business
Strategic Management Policy
spellingShingle Nationalism
alliances
collaborations
cross border
governance
Business Law, Public Responsibility, and Ethics
International Business
Strategic Management Policy
ERTUG, Gokhan
CUYPERS, Ilya R. P.
DOW, Douglas
EDMAN, Jesper
The effect of nationalism on governance choices in cross-border collaborations
description We examine how nationalism influences governance choice in cross-border collaborations. While nationalism has historically been within the purview of political scientists, we demonstrate its relevance to management scholars by theorizing how nationalist attitudes and behaviors among decision-makers might shape strategic decisions about collaborations with foreign partners. Drawing on insights from the social psychology literature, we theorize how two attitudes commonly associated with nationalism, i.e., lower levels of trust and an unwillingness to work with foreigners, may increase decision-makers’ concerns about opportunistic behavior and invasiveness in cross-border collaborations. Integrating these insights into two key theories of governance choice, i.e., transaction cost economics (TCE) and resource dependence theory (RDT), we derive two competing effects of nationalism: TCE suggests that a heightened concern about opportunistic behavior will make equity alliances more preferable, whereas RDT predicts that a greater sensitivity to invasiveness would prioritize non-equity alliances. Examining 11,469 cross-border collaborations over a 25-year period, we find, in line with the RDT-based prediction, that firms from countries with stronger nationalist sentiments prefer non-equity alliances. We also find that cross-country dissimilarities and prior conflict between the firms’ home countries strengthen this negative association. Our findings advance research on cross-border collaborations by demonstrating why and when nationalism may influence governance mode choice. We also contribute to efforts to establish nationalism, specifically in the form of nationalist sentiments, as an important theoretical concept within the management literature.
format text
author ERTUG, Gokhan
CUYPERS, Ilya R. P.
DOW, Douglas
EDMAN, Jesper
author_facet ERTUG, Gokhan
CUYPERS, Ilya R. P.
DOW, Douglas
EDMAN, Jesper
author_sort ERTUG, Gokhan
title The effect of nationalism on governance choices in cross-border collaborations
title_short The effect of nationalism on governance choices in cross-border collaborations
title_full The effect of nationalism on governance choices in cross-border collaborations
title_fullStr The effect of nationalism on governance choices in cross-border collaborations
title_full_unstemmed The effect of nationalism on governance choices in cross-border collaborations
title_sort effect of nationalism on governance choices in cross-border collaborations
publisher Institutional Knowledge at Singapore Management University
publishDate 2024
url https://ink.library.smu.edu.sg/lkcsb_research/7190
https://ink.library.smu.edu.sg/context/lkcsb_research/article/8189/viewcontent/Effect_nationalism_governance_choices_pvoa_by_nc.pdf
_version_ 1819113147193098240