Business Strategy

Lecture 15
Networks & Joint Ventures

Dunning’s eclectic OLI paradigm

modes of entry
Licensing/ franchising
Joint venture
Wholly owned subsidiary
Networks.

Control
Resource Commitment
Dissemination Risk

Strategy
Multi-domestic
Global

Environment
Level of country risk
Location familiarity
Demand conditions
Competitive conditions

Transaction Specificity
Market contracting
Non-market hierarchy

A typology of governance structures

Reliance on trust Risk
among the parties
Low High
Low Markets Hierarchy
High Recurrent contract Relational contract
Joint venture
 Equity
Non-equity
Strategic networks
Trust
Longevity.
Dis-integration in food retailing.

Williamson’s Governance Structure