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DISCUSSIONANDRESEARCHIMPLICATIONS.docVIP

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DISCUSSIONANDRESEARCHIMPLICATIONS

DISCUSSION AND RESEARCH IMPLICATIONS The stability of cooperative agreements is a combination of the structural and social aspects of a relationship. The structural dimension underlying inter firm relationships is necessary but not sufficient, and needs to be complemented by a greater attention to the social component within which the relationship is embedded. The SWF studies were most original and insightful, and have made major contributions towards our understanding of multinational ownership preferences, especially in the environment of that time. Their focus, however, is primarily on the formal and structural aspects of the relationship and, consequently, the informal and social dimensions neglected. Both these dimensions have the common objective of obtaining flexibility and efficiency in the conduct of the multinational firm’s operations. The important issue perhaps is not that of ownershipperse but, rather, that of superior coordination and conflict resolution. Refocusing the pivotal issue away from ownership has important implications. The core of the argument shifts the emphasis from hierarchical governance mechanisms to relationship management. It extends the extant strategy-structure-ownership approach towards multinational operations to include the process of coordination and conflict resolution through micro level and process-oriented mechanisms. Furthermore, by deemphasizing ownership(the distinctive feature of JVs vis-à-vis other collaborative forms), and by encouraging deeper appreciation of relational dynamics, the basic under- lying arguments, revolving around notions of trust, reciprocity, forbearance, and opportunism, can be extended beyond JVs and applied to all collaborative relation- ships, such as strategic alliances. This takes on added importance in todays business environment where, in the face of the exigencies of technological complexity and global competition, firms are increasingly engaging in a wide variety of collaborative agree

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