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Ali, Tahir
Publications (10 of 12) Show all publications
Khalid, S. & Ali, T. (2017). An integrated perspective of social exchange theory and transaction cost approach on the antecedents of trust in international joint ventures. International Business Review, 26(3), 491-501
Open this publication in new window or tab >>An integrated perspective of social exchange theory and transaction cost approach on the antecedents of trust in international joint ventures
2017 (English)In: International Business Review, ISSN 0969-5931, E-ISSN 1873-6149, Vol. 26, no 3, p. 491-501Article in journal (Refereed) Published
Abstract [en]

This study investigates the antecedents of trust in International Joint Ventures (IJVs). Building on social exchange theory (SET) and transaction cost theory (TCT), we develop an integrated framework in which trust development requires two sets of antecedents: (1) social antecedents (prior alliance experience with partner, partner’s cultural sensitivity and reputation, inter-partner communication, expected longevity of the IJVs), and (2) structural antecedents (interdependence, ownership share, resource complementary). The developed framework is tested using web-survey data collected from 89 IJVs established by Nordic firms in Asia, Europe and America. Empirical data analysis based on structural equation modelling suggests that a partner’s cultural sensitivity and reputation, inter-partner communication, and expected longevity are the social antecedents from SET that enhance trust. From TCA, the structural antecedent of resource complementary develops trust, while balanced interdepen- dence and balanced ownership are unrelated to trust. These findings have important implications for managers planning to form and manage IJVs.

Place, publisher, year, edition, pages
Elsevier, 2017
Keywords
Trust, Social antecedent, Structural antecedent, International joint venture, Social exchange theory, Transaction cost aproach
National Category
Economics and Business
Research subject
Economy, Business administration
Identifiers
urn:nbn:se:lnu:diva-61939 (URN)10.1016/j.ibusrev.2016.10.008 (DOI)000401389900007 ()
Available from: 2017-03-28 Created: 2017-03-28 Last updated: 2018-06-01Bibliographically approved
Ali, T. & Khalid, S. (2017). Trust-performance relationship in international joint ventures: the moderating roles of structural mechanisms. The journal of business & industrial marketing, 32(7), 962-973
Open this publication in new window or tab >>Trust-performance relationship in international joint ventures: the moderating roles of structural mechanisms
2017 (English)In: The journal of business & industrial marketing, ISSN 0885-8624, E-ISSN 2052-1189, Vol. 32, no 7, p. 962-973Article in journal (Refereed) Published
Abstract [en]

Purpose

This study investigates the relationship between trust and performance in international joint ventures with the moderating effects of the structural mechanisms from transaction cost approach.

Design/methodology/approach

Using web-survey data is collected from 89 IJVs of Northern European firms in Asia, Europe and America. Empirical data is analyzed with Structural Equation Modeling and estimates moderating effects of symmetric dependence, symmetric equity share and resource complementarity.

Findings

The findings offer some interesting insights for transaction cost and the social exchange theory. This study demonstrates that a symmetric equity share between IJV partners does not moderate the trust -performance relationship, while a symmetric dependence and resource complementarity between partners effect positively. Therefore, trust takes on greater importance in enhancing IJV performance under symmetric dependence and resource complementarity and symmetric equity share between IJV partners deprecates the importance of equity distribution.

Practical implications

A symmetric dependence prevents the deceit from either partner in trusting relationships. Further, a trustful relationship enhances IJV performance regardless of the equity share in IJVs. IJVs with asymmetric equity share can also be successful, provided that IJV partners develop inter-partner trust.

Originality/value

The extant research has not examined how the trust–performance relationship is contingent on structural mechanisms of IJVs that transaction cost economics deem necessary to prevent opportunistic behavior. Three structural mechanisms of symmetric dependence, symmetric equity share, and resource complementarity moderate the trust-performance relationship in IJVs.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2017
National Category
Economics and Business
Research subject
Economy
Identifiers
urn:nbn:se:lnu:diva-67438 (URN)10.1108/JBIM-02-2017-0025 (DOI)000408646800007 ()
Available from: 2017-08-25 Created: 2017-08-25 Last updated: 2017-09-14Bibliographically approved
Ali, T., Larimo, J. & Nguyen, H. L. (2017). Value creation in international joint ventures: Impact of inter-partner factors and location. In: Svetla Marinova, Jorma Larimo, Niina Nummela (Ed.), Value creation in International Business: Volume 1 : An MNC Perspective (pp. 15-53). Springer Publishing Company
Open this publication in new window or tab >>Value creation in international joint ventures: Impact of inter-partner factors and location
2017 (English)In: Value creation in International Business: Volume 1 : An MNC Perspective / [ed] Svetla Marinova, Jorma Larimo, Niina Nummela, Springer Publishing Company, 2017, p. 15-53Chapter in book (Refereed)
Abstract [en]

One key goal when establishing international joint ventures (IJVs) is to create value in different ways for the partnering firms. The value creation can be via new innovations, more effective production processes, taking benefit of the synergy effects in various functions, and so on (see e.g. Deeds and Hill 1996; Barringer and Harrison 2000). The literature on IJV research shows that internal partner factors (Brouthers and Bamossy 2006) and the interaction between partners often significantly influence the cooperation. In addition, the effect of location factors on the operations of firms has been emphasized in international business research (Miller and Eden 2006). However, the current literature related to value creation in strategic alliances and IJVs provides relatively limited empirical results about these influences. Lee et al. (2013) found that value creation differs between alliances located in developing and developed countries. Furthermore, prior research suggests that resource complementarity between partners enhances the value creation potential in IJVs (Kumar 2008). Previous studies (e.g. Pothukuchi et al. 2002) suggest that both national and organizational cultural differences also play a crucial role in the operation and effectiveness of IJVs. Some studies (e.g. Hennart and Zheng 2002; Pothukuchi et al. 2002) have found that cultural differences have a negative impact on IJV operations, and some others (e.g. Li et al. 2001) have found a positive influence. Besides, interactions between partners, such as inter-partner flexibility, communication, trust, and control mechanisms, seem to be important factors that impact upon IJV operations (Vaidya 2000). On the one hand, several IJVs do not reach the value creation goals set for them and the units are therefore subsequently terminated (Christoffersen 2013); on the other hand, the earlier results of the value creation effects of several variables are mixed. Therefore it is important to investigate more fully the impact of various inter-partner and location related variables on value creation in IJVs.

Place, publisher, year, edition, pages
Springer Publishing Company, 2017
National Category
Economics and Business
Research subject
Economy
Identifiers
urn:nbn:se:lnu:diva-61943 (URN)10.1007/978-3-319-30803-6_2 (DOI)978-3-319-30803-6 (ISBN)978-3-319-30802-9 (ISBN)
Available from: 2017-03-28 Created: 2017-03-28 Last updated: 2017-04-04Bibliographically approved
Huu Le, N., Larimo, J. & Ali, T. (2016). How do ownership control position and national culture influence conflict resolution strategies in international joint ventures?. International Business Review, 25, 559-568
Open this publication in new window or tab >>How do ownership control position and national culture influence conflict resolution strategies in international joint ventures?
2016 (English)In: International Business Review, ISSN 0969-5931, E-ISSN 1873-6149, Vol. 25, p. 559-568Article in journal (Refereed) Published
Abstract [en]

In this study, we investigate the relationship between ownership control position, national culture, and selection of conflict resolution strategies (CRS) of multinational corporations (MNCs) in their attempts to solve conflicts with local partners in international joint ventures (IJVs). The empirical evidence is based on a survey of 89 Nordic MNCs. The results show that MNCs select their CRS depending on their national culture and their ownership control position in IJVs. In addition, interesting results were found related to the interaction effects on the choice of CRS of national culture and ownership control position as well as of the trust between partners and national culture.

Keywords
National culture Ownership control position Conflict resolution strategy International joint venture
National Category
Economics and Business Business Administration
Research subject
Economy, Business administration
Identifiers
urn:nbn:se:lnu:diva-61935 (URN)10.1016/j.ibusrev.2015.09.006 (DOI)
Available from: 2017-03-28 Created: 2017-03-28 Last updated: 2017-11-29Bibliographically approved
Ali, T. & Larimo, J. (2016). Managing opportunism in international joint ventures: The role of structural and social mechanisms. Scandinavian Journal of Management, 32(2), 86-96
Open this publication in new window or tab >>Managing opportunism in international joint ventures: The role of structural and social mechanisms
2016 (English)In: Scandinavian Journal of Management, ISSN 0956-5221, E-ISSN 1873-3387, Vol. 32, no 2, p. 86-96Article in journal (Refereed) Published
Abstract [en]

Building on transaction cost economics (TCE) and social exchange theory (SET), we develop an integrated framework in which reducing opportunism requires two sets of mechanisms: (1) structural mechanisms of symmetric dependence, symmetric equity share and resource complementarity, and (2) social mechanisms of trust, communication and cultural adaptation. The framework is tested empirically using web-survey data collected from 89 IJVs established by Nordic firms in Asia, Europe and America. Empirical data analysis based on structural equation modelling shows that TCE proposed mechanisms of symmetric dependence and resource complementarity, and SET proposed mechanisms of trust, communication and cultural adaptation reduce opportunism. Contrary to expectation, the structural mechanism of symmetric equity share does not reduce opportunism. In addition, interesting results are found related to interaction effects between social and structural mechanisms in relation to reducing opportunism.

Keywords
Structural mechanisms, social mechanisms, Opportunism, International joint venture, Transaction cost economics, Social exchange theory
National Category
Business Administration
Research subject
Economy, Business administration
Identifiers
urn:nbn:se:lnu:diva-61934 (URN)10.1016/j.scaman.2016.03.002 (DOI)
Available from: 2017-03-28 Created: 2017-03-28 Last updated: 2017-11-29Bibliographically approved
Larimo, J., Nguyen, H. L. & Ali, T. (2016). Performance measurement choices in international joint ventures: What factors drive them?. Journal of Business Research, 69(2), 877-887
Open this publication in new window or tab >>Performance measurement choices in international joint ventures: What factors drive them?
2016 (English)In: Journal of Business Research, ISSN 0148-2963, E-ISSN 1873-7978, Vol. 69, no 2, p. 877-887Article in journal (Refereed) Published
Abstract [en]

How to evaluate performance of an organization and what factors influence the choices of performance measurements have remained unclear. The question is even more complicated for jointly managed organizations like international joint ventures (IJVs). This research investigates the determinant factors of performance measures used by Nordic firms in their IJVs. We tested our hypotheses with 89 IJVs established by Nordic firms. The results show that firms' motives, level of trust and cultural distance between foreign and local firms all have a strong influence on the choice of performance measures used. Furthermore, firms choose performance measures depending on the stage of the unit in the IJV life cycle. Interestingly target country experience influenced the choice of performance measurement, but previous IJV experience did not influence the measures used. The study offers several implications for managers to choose appropriate measures for their IJV performance evaluation as well as opportunities for further research.

Keywords
Nordic international joint ventures, Performance measurement, Non-financial measure, Financial measure
National Category
Business Administration
Research subject
Economy, Business administration
Identifiers
urn:nbn:se:lnu:diva-61936 (URN)10.1016/j.jbusres.2015.07.003 (DOI)
Available from: 2017-03-28 Created: 2017-03-28 Last updated: 2017-11-29Bibliographically approved
Shahzad, K., Takala, J., Helo, P. & Ali, T. (2016). Successfully managing business networks in supply chain: minimizing transaction costs and maximizing commitments in buyer-supplier relationships. In: 25th annual IPSERA Conference. Sunday 20 March - Wednesday 23 March 2016: Purchasing & Supply Management : From efficiency to effectiveness in an integrated Supply Chain Management. Paper presented at 25th annual IPSERA Conference. Sunday 20 March - Wednesday 23 March 2016 (pp. 1-16). Technical University of Dortmund
Open this publication in new window or tab >>Successfully managing business networks in supply chain: minimizing transaction costs and maximizing commitments in buyer-supplier relationships
2016 (English)In: 25th annual IPSERA Conference. Sunday 20 March - Wednesday 23 March 2016: Purchasing & Supply Management : From efficiency to effectiveness in an integrated Supply Chain Management, Technical University of Dortmund , 2016, p. 1-16Conference paper, Published paper (Refereed)
Abstract [en]

Based on transaction cost economics and social exchange theory, the purpose of this study is to investigate the significant relationship developing factors in supply chain that may help to reduce the transaction costs and to examine the impact on relational commitment. The integrated framework is tested by applying structural equation modeling for 170 Finnish SMEs. The results present the impact of economic and social factors on transaction cost and relational commitment. The findings indicate the important interaction effects between economic and social factors in relation to minimize transaction cost along with important implications for managers to develop long-term business relationships. 

Place, publisher, year, edition, pages
Technical University of Dortmund, 2016
Keywords
Transaction cost, relational commitment, buyer-supplier relationships, transaction cost economics, social exchange theory
National Category
Business Administration
Research subject
Economy, Business administration
Identifiers
urn:nbn:se:lnu:diva-61945 (URN)
Conference
25th annual IPSERA Conference. Sunday 20 March - Wednesday 23 March 2016
Available from: 2017-03-28 Created: 2017-03-28 Last updated: 2017-03-31Bibliographically approved
Nguyen, H. L., Larimo, J. & Ali, T. (2015). Control position strategy, cultural distance, conflict resolution strategies and performance of international joint ventures. In: Palitha Konara, Yoo Jung Ha, Frank McDonald, Yingqi Wei (Ed.), The rise of Multinationals from Emerging Economies: Achieving a New Balance (pp. 159-175). Palgrave Macmillan
Open this publication in new window or tab >>Control position strategy, cultural distance, conflict resolution strategies and performance of international joint ventures
2015 (English)In: The rise of Multinationals from Emerging Economies: Achieving a New Balance / [ed] Palitha Konara, Yoo Jung Ha, Frank McDonald, Yingqi Wei, Palgrave Macmillan, 2015, p. 159-175Chapter in book (Refereed)
Abstract [en]

Facing fierce global competition, firms often establish international joint ventures (IJVs) with foreign firms (Kwon, 2013). However, researchers notice a high rate of IJV failure (e.g. Hennart, Kim and Zeng, 1998). One of the key reasons is that firms often have different goals and ways of communications. Another reason is that inter-partner conflicts often lead to dissolution of partnership (Fey and Beamish, 1999; Pajunen and Fang, 2013). Thus, understanding conflict is crucial to organisations (Boonsathorn, 2007, Das and Kumar, 2010; Krone and Steimel, 2013) since conflict resolution strategies of parent firms affect IJV performance (Fey and Bearmish, 1999; Lu, 2006; Yavas, et al., 1994). Lin and Germain, 1998) suggest that foreign parent firms differ in their choice of conflict resolution strategies (CRS). Wang, Lin, Chang and Shi (2005) notice that conflict handling styles of partner firms becomes an important topic in IJV research, and White III, Joplin and Salama (2007) maintain that conflict resolution strategy is an underexplored area in the international business and management literature.

Place, publisher, year, edition, pages
Palgrave Macmillan, 2015
Series
The Academy of International Business
National Category
Business Administration
Research subject
Economy, Business administration
Identifiers
urn:nbn:se:lnu:diva-61944 (URN)10.1057/9781137473110_9 (DOI)978-1-349-50135-9 (ISBN)978-1-137-47311-0 (ISBN)
Available from: 2017-03-28 Created: 2017-03-28 Last updated: 2017-03-31Bibliographically approved
Imeri, S., Shahzad, K., Takala, J., Liu, Y., Sillanpää, I. & Ali, T. (2015). Evaluation and selection process of supplier through analytical framework: An empirical evidence of evaluation tool. Management and Production Engineering Review, 6(3), 10-20
Open this publication in new window or tab >>Evaluation and selection process of supplier through analytical framework: An empirical evidence of evaluation tool
Show others...
2015 (English)In: Management and Production Engineering Review, ISSN 2080-8208, E-ISSN 2082-1344, Vol. 6, no 3, p. 10-20Article in journal (Refereed) Published
Abstract [en]

The supplier selection process is very important to companies as selecting the right suppliers that fit companies strategy needs brings drastic savings. Therefore, this paper seeks to address the key area of supplies evaluation from the supplier review perspective. The purpose was to identify the most important criteria for suppliers’ evaluation and develop evaluation tool based on surveyed criteria. The research was conducted through structured questionnaire and the sample focused on small to medium sized companies (SMEs) in Greece. In total eighty companies participated in the survey answering the full questionnaire which consisted of questions whether these companies utilize some suppliers’ evaluation criteria and what criteria if any is applied. The main statistical instrument used in the study is Principal Component Analysis (PCA). Thus, the research has shown that the main criteria are: the attitude of the vendor towards the customer, supplier delivery time, product quality and price. Conclusions are made on the suitability and usefulness of suppliers’ evaluation criteria and in way they are applied in enterprises.

Keywords
supplier evaluation, suppliers performance management, supplier selection model, principal component analysis, supply chain management
National Category
Economics and Business
Research subject
Economy, Business administration
Identifiers
urn:nbn:se:lnu:diva-61938 (URN)10.1515/mper-2015-0022 (DOI)
Available from: 2017-03-28 Created: 2017-03-28 Last updated: 2017-11-29Bibliographically approved
Shahzad, K., Takala, J., Ali, T. & Sillanpää, I. (2015). Managing for success: The role of transactional and relational mechanisms in Buyer-Supplier relationships. Management, 10(1), 35-59
Open this publication in new window or tab >>Managing for success: The role of transactional and relational mechanisms in Buyer-Supplier relationships
2015 (English)In: Management, ISSN 1854-4223, E-ISSN 1854-4231, Vol. 10, no 1, p. 35-59Article in journal (Refereed) Published
Abstract [en]

Firms are collaborating more in supply chain network and identified the importance of business relationships. This idea was embraced by academic and empirical research in operations management since last decade. Therefore, the purpose of this study is to develop a comprehensive integrated conceptual and empirical framework which elaborates the role of transactional and relational factors to highlight buyer-supplier relationship performance. While, limited studies explored these factors separately neither provide the dynamic interactive role of transactional and relational factors in an integrated framework. Through multiple case studies, findings reveal that impact of relational factors of trust and communication has constructive influence in reducing the transaction cost and improving relationship performance. This study contributes to debate on managing complex business network relationships by providing a combined theoretical setting (transaction cost economics and social exchange theory) and empirically proven integrated model. Managers can enhance the operational performance by selecting the most suitable constructs.

Keywords
buyer-supplier relationship, transactional mechanism, relational mechanism, case study, operational performance, transaction cost
National Category
Business Administration
Research subject
Economy
Identifiers
urn:nbn:se:lnu:diva-61937 (URN)
Available from: 2017-03-28 Created: 2017-03-28 Last updated: 2017-11-29Bibliographically approved
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