Our new research article in Management International on the application of the Gravity Model to the formation of international alliances

December 17, 2018

 

With Juliane Engsig (University of Montpellier) and Frédéric Le Roy (University of Montpellier), we wrote a research article entitled "Gravity for Domestic and International Alliances: A CAGE Perspective" that just got published in Management International.

 

More precisely, this paper assesses the relevance of the Gravity model to investigations of alliance flows within and between countries. Accordingly we aim to identify how different distance dimensions impact the alliance partner choice. Inspired by economics research, we use the Gravity model to estimate and analyse bilateral alliance flows within countries and between country pairs. Our results show that the richer the companies’ home countries are, the more alliances are found between firms of these two countries. We also reveal that too much geographic and cultural distance between two countries decreases the number of alliances signed between firms of these countries.

 

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