Quotation Müllner, Jakob, Lindner, Thomas, Dorobantu, Sinziana. 2017. Interorganizational Diversity and the Formation of Partnerships in Lending Syndicates. Academy of Management Proceedings. Nov


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Abstract

We examine how interorganizational diversity measured across all the organizations participating in a multipartner alliance affects the formation of the multipartner banking syndicates that come together to finance the world's largest infrastructure projects. Previous studies have argued that interorganizational diversity negatively affects the formation of alliances because diversity increases the costs of coordination and the probability of conflict among the partners. We extend this research and argue that the negative relationship between interorganizational diversity and alliance formation is moderated by the institutional content in the country where the infrastructure project is built. Diverse syndicates allow partners to pool resources and knowledge that can be useful in managing local institutional risks. We compare 1,110 realized multipartner syndicates with 26,552 randomly generated unrealized syndicates to provide evidence that more diverse alliances are likely to form when the project is located in a high-risk institutional context than when the project is located in a low-risk country.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Academy of Management Proceedings
Language English
Title Interorganizational Diversity and the Formation of Partnerships in Lending Syndicates
Volume Nov
Year 2017
Reviewed? Y
URL https://journals.aom.org/doi/10.5465/ambpp.2017.15332abstract
DOI https://doi.org/10.5465/AMBPP.2017.15332abstract
Open Access N

Associations

People
Müllner, Jakob (Details)
Lindner, Thomas (Details)
External
Dorobantu, Sinziana (NYU Stern School of Business, United States/USA)
Organization
Institute for International Business (Details)
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