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Alliances in international governmental organizations, regional trade agreement formation, and multinational enterprise regionalization strategy

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Abstract

Drawing from political science alliance theories, we explain why countries are likely to enter regional trade agreements. We argue that the probability that this will happen is higher if the countries are allies in the same international governmental organizations (IGOs), as such alliances can help build trust and reduce political risk. Our results show that IGO scope and also partner reliability and influence in the IGO network play important roles. Our findings provide guidance to multinational enterprises in formulating regionalization strategies.

Résumé

En nous appuyant sur les théories d’alliance en sciences politiques, nous expliquons pourquoi des pays sont susceptibles d’adhérer aux accords commerciaux régionaux. Nous démontrons que la probabilité que ceci arrive est plus élevée si les pays sont alliés dans les mêmes organisations gouvernementales internationales (OGI), ce type d’alliance pouvant aider à construire la confiance et à réduire le risque politique. Nos résultats montrent que le champ de l’OGI et que la fiabilité et l’influence des partenaires dans le réseau de l’IGO jouent des rôles importants. Nos résultats peuvent guider les entreprises multinationales dans la formulation de stratégies de régionalisation

Resumen

Con base en las teorías de alianza de la ciencia política, explicamos por qué los países son propensos a entrar en acuerdos comerciales. Argumentamos que la probabilidad que esto ocurra es mayor si los países son aliados en las mismas organizaciones intergubernamentales (OIG), puesto que estas alianzas pueden ayudar a construir confianza y reducir el riesgo político. Nuestros resultados muestran que alcance de las OIG y también la confiabilidad y la influencia de los socios en la red de las OIG juega roles importantes. Nuestros hallazgos dan orientación a las empresas multinacionales para la formulación de estrategias de regionalización.

Resumo

Com base nas teorias de aliança da ciência política, explicamos por que países provavelmente entram em acordos comerciais regionais. Argumentamos que a probabilidade de que isso aconteça é maior se os países são aliados nas mesmas organizações governamentais internacionais (IGO), pois tais alianças podem ajudar a construir confiança e reduzir risco político. Nossos resultados mostram que desempenham papéis importantes o escopo das IGO, bem como a confiabilidade e influência do parceiro na rede de IGO. Nossos resultados fornecem orientação para empresas multinacionais na formulação de estratégias de regionalização.

摘要

借鉴政治学的联盟理论,我们解释为什么各国有可能参加区域贸易协定。我们认为,如果这些国家是同一个国际政府组织(IGO)的盟友,这种情况发生的可能性会较高,因为这样的联盟有助于建立信任并降低政治风险。我们的研究结果表明,IGO范围以及合作伙伴在IGO网络中的可靠性和影响力起了重要的作用。我们的发现为跨国企业制定区域化战略提供了指导。

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Authors and Affiliations

  1. School of Management, University of Michigan-Flint, 303 E. Kearsley, Flint, MI, 48503, USA

    Yener Kandogan

  2. School of Human and Social Sciences, Bergische Universität Wuppertal, Wuppertal, Germany

    Jens Hiller

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  1. Yener Kandogan
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  2. Jens Hiller
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Correspondence to Yener Kandogan.

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Accepted by Arjen van Witteloostuijn, Area Editor, March 19, 2018. This paper has been with the authors for four revisions.

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Kandogan, Y., Hiller, J. Alliances in international governmental organizations, regional trade agreement formation, and multinational enterprise regionalization strategy. J Int Bus Stud 49, 729–742 (2018). https://doi.org/10.1057/s41267-018-0152-x

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