Returns to US firms from strategic alliances in China: A knowledge-based view

Drawing on the knowledge-based view (KBV) of the firm, this study compares value creation between US manufacturing and service firms entering China through strategic alliances. Using an event study applied on a sample of 192 manufacturing and 105 service firms, the results indicate that value creation for manufacturing and service firms differ. For service firms, having a Chinese state-owned-enterprise as a partner, marketing agreement, and/or Chinese partner creates greater value. These findings highlight the significance of knowledge acquisition versus accession in US–Chinese partnerships.