International Strategic Alliance and Its Performance in China: The Resource-Based View


  •  Yuhua Li    

Abstract

This paper uses resource-based view to examine whether different resource complementary degree contributes todifferent international strategic alliance performance in China’s banking sector. This paper uses strategicalliances established in China’s banking sector from 2001 to 2008, and its alliance performance is fromagreement date to December 31, 2010. Through Ordinary Least Squares regression and probit regressionanalyses, this paper found that resource complementary has positive but insignificant impact on allianceperformance in China’s banking sector. Two potential reasons could explain the results. First, the existence ofliability of foreignness leads to the mismatch resources between Chinese banks and foreign banks. Second, thepotential competition between foreign banks and Chinese banks hinder foreign banks to contribute their 100percent resources. In addition, the case study on strategic alliance between China Minsheng Bank and Temasekalso shows that high resource complementary doesn’t contribute to high alliance performance.


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