| HOME | HELP | FEEDBACK | SUBSCRIPTIONS | ARCHIVE | SEARCH | TABLE OF CONTENTS |
|
|
|
|||||||
|
|||||||||
Department of Industrial Engineering and Engineering Management, Stanford University, Stanford, California 94305
Why do firms form strategic alliances? The traditional theoretical answer has been transaction cost explanations. Yet, these explanations which center on transaction characteristics, static efficiency, and routine situations do not capture the strategic and social factors which propel many firms into alliance formation. In this study, however, we combine these alternative social and strategic explanations for alliance formation. Consistent with these explanations, we find that alliances form when firms are in vulnerable strategic positions either because they are competing in emergent or highly competitive industries or because they are attempting pioneering technical strategies. We also find that alliances form when firms are in strong social positions such that they are led by large, experienced, and well-connected top management teams. The underlying logic of alliance formation is, thus, strategic needs and social opportunities.
We develop these findings by extending the resource-based view of the firm to alliance formation and then examining the resulting hypotheses using product development alliances. The study is longitudinal and focuses on entrepreneurial semiconductor firms. Overall, strategic and social explanations of organizational phenomena as well as industry, firm, and top management team factors emerge as central in the paper. This suggests that these factors are relevant for predicting alliance formation, especially in high-velocity industries such as semiconductors. We conclude that failure to include social and strategic explanations creates an impoverished view of alliance formation.
The Amos Tuck School of Business, Dartmouth College, Hanover, New Hampshire 03755
This article has been cited by other articles:
|
|
 |
|
  S. Dorado, D. E. Giles Jr, and T. C. Welch Delegation of Coordination and Outcomes in Cross-Sector Partnerships: The Case of Service Learning Partnerships Nonprofit and Voluntary Sector Quarterly, June 1, 2009; 38(3): 368 - 391. [Abstract] [PDF]
|
|
|
|
 |
|
 J. Hagedoorn, S. Lorenz-Orlean, and H. van Kranenburg Inter-firm technology transfer: partnership-embedded licensing or standard licensing agreements? Ind. Corp. Change, June 1, 2009; 18(3): 529 - 550. [Abstract] [Full Text] [PDF]
|
|
|
|
 |
|
 A. Van Gils and P. S. Zwart Alliance Formation Motives in SMEs: An Explorative Conjoint Analysis Study International Small Business Journal, February 1, 2009; 27(1): 5 - 37. [Abstract] [PDF]
|
|
|
|
|
|
K. Babiak and L. Thibault Challenges in Multiple Cross-Sector Partnerships Nonprofit and Voluntary Sector Quarterly, February 1, 2009; 38(1): 117 - 143. [Abstract] [PDF]
|
|
|
|
 |
|
 D. Lavie and S. R. Miller Alliance Portfolio Internationalization and Firm Performance Organization Science, July 1, 2008; 19(4): 623 - 646. [Abstract] [PDF]
|
|
|
|
 |
|
 R. Salomon and X. Martin Learning, Knowledge Transfer, and Technology Implementation Performance: A Study of Time-to-Build in the Global Semiconductor Industry Management Science, July 1, 2008; 54(7): 1266 - 1280. [Abstract] [PDF]
|
|
|
|
 |
|
 K. D. Brouthers, L. E. Brouthers, and S. Werner Resource-Based Advantages in an International Context{dagger} Journal of Management, April 1, 2008; 34(2): 189 - 217. [Abstract] [PDF]
|
|
|
|
 |
|
 J. Ferdinand and D. Simm Re-theorizing External Learning: Insights from Economic and Industrial Espionage Management Learning, July 1, 2007; 38(3): 297 - 317. [Abstract] [PDF]
|
|
|
|
|
|
Q. Cao, L. M. Maruping, and R. Takeuchi Disentangling the Effects of CEO Turnover and Succession on Organizational Capabilities: A Social Network Perspective Organization Science, September 1, 2006; 17(5): 563 - 576. [Abstract] [PDF]
|
|
|
|
|
|
S. Shane, V. Shankar, and A. Aravindakshan The Effects of New Franchisor Partnering Strategies on Franchise System Size Management Science, May 1, 2006; 52(5): 773 - 787. [Abstract] [PDF]
|
|
|
|
|
|
D. H. Hsu Venture Capitalists and Cooperative Start-up Commercialization Strategy Management Science, February 1, 2006; 52(2): 204 - 219. [Abstract] [PDF]
|
|
|
|
|
|
H. Neergaard Networking Activities in Technology-based Entrepreneurial Teams International Small Business Journal, June 1, 2005; 23(3): 257 - 278. [Abstract] [PDF]
|
|
|
|
|
|
W. Boeker and R. Wiltbank New Venture Evolution and Managerial Capabilities Organization Science, March 1, 2005; 16(2): 123 - 133. [Abstract] [PDF]
|
|
|
|
|
|
M. A. Carpenter, M. A. Geletkanycz, and Wm. G. Sanders Upper Echelons Research Revisited: Antecedents, Elements, and Consequences of Top Management Team Composition Journal of Management, December 1, 2004; 30(6): 749 - 778. [Abstract] [PDF]
|
|
|
|
|
|
M. S. Feldman Resources in Emerging Structures and Processes of Change Organization Science, May 1, 2004; 15(3): 295 - 309. [Abstract] [PDF]
|
|
|
|
|
|
N. K. Park, J. M. Mezias, and J. Song A Resource-based View of Strategic Alliances and Firm Value in the Electronic Marketplace Journal of Management, February 1, 2004; 30(1): 7 - 27. [Abstract] [PDF]
|
|
|
|
 |
|
 M. D. Michalisin, S. J. Karau, and C. Tangpong Top Management Team Cohesion and Superior Industry Returns: An Empirical Study of the Resource-Based View Group Organization Management, February 1, 2004; 29(1): 125 - 140. [Abstract] [PDF]
|
|
|
|
|
|
R. D. Ireland, M. A. Hitt, and D. G. Sirmon A Model of Strategic Entrepreneurship: The Construct and its Dimensions Journal of Management, December 1, 2003; 29(6): 963 - 989. [Abstract] [PDF]
|
|
|
|
|
|
A. G. L. Romme Making a Difference: Organization as Design Organization Science, September 1, 2003; 14(5): 558 - 573. [Abstract] [PDF]
|
|
|
|
|
|
D. R. King, J. G. Covin, and W. H. Hegarty Complementary Resources and the Exploitation of Technological Innovations Journal of Management, August 1, 2003; 29(4): 589 - 606. [Abstract] [PDF]
|
|
|
|
|
|
L. Rosenkopf and P. Almeida Overcoming Local Search Through Alliances and Mobility Management Science, June 1, 2003; 49(6): 751 - 766. [Abstract] [PDF]
|
|
|
|
|
|
M. C. Higgins and R. Gulati Getting Off to a Good Start: The Effects of Upper Echelon Affiliations on Underwriter Prestige Organization Science, May 1, 2003; 14(3): 244 - 263. [Abstract] [PDF]
|
|
|
|
|
|
X. Martin and R. Salomon Tacitness, Learning, and International Expansion: A Study of Foreign Direct Investment in a Knowledge-Intensive Industry Organization Science, May 1, 2003; 14(3): 297 - 311. [Abstract] [PDF]
|
|
|
|
 |
|
 A. W. Joshi and A. J. Campbell Effect of Environmental Dynamism on Relational Governance in Manufacturer-Supplier Relationships: A Contingency Framework and an Empirical Test Journal of the Academy of Marketing Science, April 1, 2003; 31(2): 176 - 188. [Abstract] [PDF]
|
|
|
|
 |
|
 H. Mitsuhashi Effects of the Social Origins of Alliances on Alliance Performance Organization Studies, February 1, 2003; 24(2): 321 - 339. [Abstract] [PDF]
|
|
|
|
 |
|
 U. Staber and J. Sydow Organizational Adaptive Capacity: A Structuration Perspective Journal of Management Inquiry, December 1, 2002; 11(4): 408 - 424. [Abstract] [PDF]
|
|
|
|
|
|
R. Montealegre A Process Model of Capability Development: Lessons from the Electronic Commerce Strategy at Bolsa de Valores de Guayaquil Organization Science, September 1, 2002; 13(5): 514 - 531. [Abstract] [PDF]
|
|
|
|
|
|
M. A. Schilling and H. K. Steensma Disentangling the Theories of Firm Boundaries: A Path Model and Empirical Test Organization Science, July 1, 2002; 13(4): 387 - 401. [Abstract] [PDF]
|
|
|
|
|
|
R. D. Ireland, M. A. Hitt, and D. Vaidyanath Alliance Management as a Source of Competitive Advantage Journal of Management, June 1, 2002; 28(3): 413 - 446. [Abstract] [PDF]
|
|
|
|
|
|
P. Almeida, J. Song, and R. M. Grant Are Firms Superior to Alliances and Markets? An Empirical Test of Cross-Border Knowledge Building Organization Science, March 1, 2002; 13(2): 147 - 161. [Abstract] [PDF]
|
|
|
|
|
|
M. Schneider A Stakeholder Model of Organizational Leadership Organization Science, March 1, 2002; 13(2): 209 - 220. [Abstract] [PDF]
|
|
|
|
|
|
J. J. Reuer and A. Arino Contractual Renegotiations in Strategic Alliances Journal of Management, February 1, 2002; 28(1): 47 - 68. [Abstract] [PDF]
|
|
|
|
|
|
C. Jones Co-Evolution of Entrepreneurial Careers, Institutional Rules and Competitive Dynamics in American Film, 1895-1920 Organization Studies, November 1, 2001; 22(6): 911 - 944. [Abstract] [PDF]
|
|
|
|
|
|
P. Olk and M. Elvira Friends and Strategic Agents: The Role of Friendship and Discretion in Negotiating Strategic Alliances Group Organization Management, June 1, 2001; 26(2): 124 - 164. [Abstract] [PDF]
|
|
|
|
|
|
J. B. Thomas, S. W. Sussman, and J. C. Henderson Understanding "Strategic Learning": Linking Organizational Learning, Knowledge Management, and Sensemaking Organization Science, May 1, 2001; 12(3): 331 - 345. [Abstract] [PDF]
|
|
|
|
|
|
S. H. Park and G. R. Ungson Interfirm Rivalry and Managerial Complexity: A Conceptual Framework of Alliance Failure Organization Science, January 1, 2001; 12(1): 37 - 53. [Abstract] [PDF]
|
|
|
|
|
|
T. K. Das and B.-S. Teng A Resource-Based Theory of Strategic Alliances Journal of Management, February 1, 2000; 26(1): 31 - 61. [Abstract] [PDF]
|
|
|
|
|
|
T. K. Das and B.-S. Teng Instabilities of Strategic Alliances: An Internal Tensions Perspective Organization Science, January 1, 2000; 11(1): 77 - 101. [Abstract] [PDF]
|
|
|
|
|
|
M. Grabowski and K. H. Roberts Risk Mitigation in Virtual Organizations Organization Science, November 1, 1999; 10(6): 704 - 721. [Abstract] [PDF]
|
|
|
|
|
|
M. T. Dacin, M. J. Ventresca, and B. D. Beal The Embeddedness of Organizations: Dialogue & Directions Journal of Management, June 1, 1999; 25(3): 317 - 356. [Abstract] [PDF]
|
|
|
|
 |
|
 S. L. Jarvenpaa and D. E. Leidner An Information Company in Mexico: Extending the Resource-Based View of the Firm to a Developing Country Context Information Systems Research, December 1, 1998; 9(4): 342 - 361. [Abstract] [PDF]
|
|
|
|
|
|
J. Sydow and A. Windeler Organizing and Evaluating Interfirm Networks: A Structurationist Perspective on Network Processes and Effectiveness Organization Science, May 1, 1998; 9(3): 265 - 284. [Abstract] [PDF]
|
|
|
|
|
|
A. Madhok and S. B. Tallman Resources, Transactions and Rents: Managing Value Through Interfirm Collaborative Relationships Organization Science, May 1, 1998; 9(3): 326 - 339. [Abstract] [PDF]
|
|
|
|
|
|
T. K. Das and B.-S. Teng Resource and Risk Management in the Strategic Alliance Making Process Journal of Management, February 1, 1998; 24(1): 21 - 42. [Abstract] [PDF]
|
|
| HOME | HELP | FEEDBACK | SUBSCRIPTIONS | ARCHIVE | SEARCH | TABLE OF CONTENTS |
