The coevolution of alliances and industries: How industry transformation influences alliance formation and vice versa

Abstract

The paper investigates the role of alliances in periods of industry transformation. It addresses the research question why firms ally in dynamic environments. This takes place with an interactive qualitative research design and fieldwork in the changing German health care sector between 2004 and 2007, primarily using qualitative longitudinal data from a focus group panel. From the theoretical side, the resource- and competence-based views have proven useful for alliance research. For our theory-driven investigation we applied the perspective of the competence-based theory of the firm and extended this view by insights from the Austrian School in order to cover developments on multiple levels of analysis in an integrated way.

On an aggregated level we elaborate a taxonomy of three categories reflecting motivations and alliance types against the background of industry transformation:(1)closing resource and competence gaps in so-called “gap-closing alliances,”(2)preparing for unexpected developments in so-called “option networks,” and(3)intending to proactively exert influence on the relevant business environment in so-called “steering alliances” as an alternative way to enhance fit.

For each alliance type, propositions are derived and validated. Summarizing the findings from a meta point of view, a twofold role of collaborative arrangements turned out: On the one hand agents are pushed into cooperation with others in order to manage change and uncertainty in transforming business environments. But on the other hand joint forces themselves act as an accelerator of industry transformation and thereby as a jolt to other economic agents.

Citation

Goeke, C., Gersch, M. and Freiling, J. (2010), "The coevolution of alliances and industries: How industry transformation influences alliance formation and vice versa", Sanchez, R., Heene, A. and Ede Zimmermann, T. (Ed.) A Focussed Issue on Identifying, Building, and Linking Competences (Research in Competence-Based Management, Vol. 5), Emerald Group Publishing Limited, Leeds, pp. 79-109. https://doi.org/10.1108/S1744-2117(2010)0000005007