The Role of Level of Country Development on Type of International Cooperative Arrangement Activities: A Survey of U.S. Based Manufacturing Multinationals

Abstract

ABSTRACT This study investigated the differences in the incidence of international cooperative arrangement (ICA) announcements by value-adding activity in different country environments defined by level of development (developed, newly industrializing, less developed and transition). Porter's value chain framework (1985) was employed to categorize the announcements of ICAs by U.S. manufacturing multinationals from 1987 through 1993. There was a significant difference in incidence of ICA announcements by value chain activity in different country environments. While the Logistics and Operations activity was the most common cooperative activity in all country environments, the disparities were most pronounced in newly industrializing, less developed and transition economies. Logistics and Operations was the dominant type of cooperative arrangement in these countries accounting for between 49–72% of all cooperative arrangements in different country environments.