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While it has long been established that social factors, such as housing, transportation, and income, influence health and health care outcomes, over the last decade, attention to this topic has grown dramatically. Reforms that promote high-quality care as well as responsibility for total cost of care have shifted focus among health care providers toward upstream determinants of health care outcomes. As a result, there has been a proliferation of activity focused on integrating and aligning social and medical care, many of which depend critically on cross-sector alliances. Despite considerable activity in this area, cross-sector alliances in health care remain largely undertheorized. Both literatures stand to gain from more attention to carefully knitting together the theoretical and management literature on alliances with the empirical, health policy and health services literature on cross-sector alliances in health care. In this chapter, we lay out what exists in the current scientific literature as well as a framework for considering much needed work in this area. We organize the literature and our commentary around the lifecycle of alliances: alliance formation, including factors prompting alliance formation, partner selection, and alliance goals; alliance maturity, including the work of these cross-sector alliances, governance, finance and contracts, staffing structure, and rewards; and critical crossroads, including alliance timelines, definitions of success, and dissolution. We also lay out critical areas for future inquiry, including better theorizing on cross-sector alliances, developing typologies of these cross-sector health care alliances, and the role of policy in cross-sector alliances.

This chapter highlights and examines the journey of strategic alliances, how alliances lead to the creation of new alliances, and whether alliances succeed or precede firms' market networks. Moreover, the chapter attempts to identify the market and environmental factors which impact the journey and the end result of alliances. The findings show that before the alliance and in the early strategic alliance phase, firms can have direct and indirect relationships/networks which can lead to the formation of strategic alliances. The other finding is that one of the main factors which determines the journey of strategic alliances is the degree of internationalization of the firm and the market. The journey of alliances was also found to be different in the various groups of Eastern and Central Europe (ECE) countries depending on the pace or degree of adaptation of those countries. It was also found that well-developed networks have a positive impact on the alliance results. Moreover, the chapter also provides evidence that alliances enable firms to defend and strengthen existing networks to build new networks and to penetrate partners' networks. It is finally observed that it is difficult to determine whether alliances succeed or precede networks.

The rate of alliance formation by firms has greatly increased over the past two decades. Congruently, firm interest in corporate social responsibility (CSR) initiatives has also increased. Signaling theory suggests that firms may be increasing their CSR strategies in an effort to signal their willingness to operate within social mores. However, firms are faced with the problem of how to communicate their social commitment objectively to stakeholders. We argue that firms are forming CSR alliances in an attempt to signal an objective message to stakeholders concerning their commitment to CSR. To provide insight into these explanations, we compare the Total CSR performance (TCSR) scores of firms that form CSR alliances with those firms that do not. We control for firm size, leverage, profitability, and industry. We find that firms that form CSR alliances generally have higher TCSR scores, which suggests that one of the reasons that firms form these alliances is to publicize their stronger social and environmental records to stakeholders.

This study examines the effect of domestic alliances on firms’ foreign divestment decisions. We argue that foreign subsidiaries face a higher risk of being divested when firms form new alliances with other firms in their home country. Alliances at home involve resources and may divert attention away from international operations. Also, opportunities emerging from entering into new relationships with other firms domestically may lead firms to reconfigure their value chain activities and resources across locations, thereby increasing the probability of foreign divestment. Using data from the electronic and electrical equipment industries in the USA over the period 2001–2008, we empirically investigate the link between domestic alliances and foreign divestment. We find that increases in domestic interfirm collaboration indeed significantly affect firms’ propensity to divest foreign operations.

In recent years, alliances have become even more popular than mergers and acquisitions. Alliance formation has led to the emergence of interconnected firms, which are embedded in alliance networks. This paper offers a theory of network resources to evaluate the competitive advantage of interconnected firms. It distinguishes shared resources from non-shared resources, identifies various types of rent, and illustrates how firm-, relation-, and partner-specific factors determine the contribution of network resources to the rents that interconnected firms extract from their alliance networks. This paper revisits traditional assumptions of the resource-based view and suggests that the nature of relationships may matter more than the nature of resources in creating and sustaining the competitive advantage of interconnected firms.

We propose that in addition to its resources and capabilities, a firm’s capital structure and financial health will act as an important determinant of its attractiveness as an alliance partner. Alliances with leveraged firms are prone to unplanned termination due to financial distress, which puts at risk the value embedded in the collaboration. As a result, ceteris paribus, highly leveraged firms will be viewed as less desirable partners in the market for interfirm collaboration when compared to low leverage firms. In support of this proposition, we find that when forming an alliance firms tend to partner with other firms with similar levels of leverage: low-leverage firms partner with other low-leverage firms while high-leverage firms partner with other high-leverage firms, as well as with lower quality ones. Furthermore, we show that alliances with highly leveraged firms are more likely to involve equity participation as a form of ex post protection, especially when they involve partners with relatively lower leverage. Finally, we show that leverage is negatively related to the intensity of alliance activity, suggesting that firms also maintain lower leverage in their capital structure in order to attract potential partners. Overall our results imply that financial policies regarding capital structure have an important role to play in alliancing activity.

The study this chapter reports focuses on how network theory contributes to the understanding of the internationalization process of SMEs and measures the effect of network capability on performance in international trade and has three research objectives.

The first objective of the study relates to providing new insights into the international market development activities through the application of a network perspective. The chapter reviews the international business literature to ascertain the development of thought, the research gaps, and the shortcomings. This review shows that the network perspective is a useful and popular theoretical domain that researchers can use to understand international activities, particularly of small, high technology, resource-constrained firms.

The second research objective is to gain a deeper understanding of network capability. This chapter presents a model for the impact of network capability on international performance by building on the emerging literature on the dynamic capabilities view of the firm. The model conceptualizes network capability in terms of network characteristics, network operation, and network resources. Network characteristics comprise strong and weak ties (operationalized as foreign-market entry modes), relational capability, and the level of trust between partners. Network operation focuses on network initiation, network coordination, and network learning capabilities. Network resources comprise network human-capital resources, synergy-sensitive resources (resource combinations within the network), and information sharing within the network.

The third research objective is to determine the impact of networking capability on the international performance of SMEs. The study analyzes 11 hypotheses through structural equations modeling using LISREL. The hypotheses relate to strong and weak ties, the relative strength of strong ties over weak ties, and each of the eight remaining constructs of networking capability in the study. The research conducts a cross-sectional study by using a sample of SMEs drawn from the telecommunications industry in Ireland.

The study supports the hypothesis that strong ties are more influential on international performance than weak ties. Similarly, network coordination and human-capital resources have a positive and significant association with international performance. Strong ties, weak ties, trust, network initiation, synergy-sensitive resources, relational capability, network learning, and information sharing do not have a significant association with international performance. The results of this study are strong (R2=0.63 for performance as the outcome) and provide a number of interesting insights into the relations between collaboration or networking capability and performance.

This study provides managers and policy makers with an improved understanding of the contingent effects of networks to highlight situations where networks might have limited, zero, or even negative effects on business outcomes. The study cautions against the tendency to interpret networks as universally beneficial to business development and performance outcomes.

In this chapter, six cases are presented, four from Poland and two from Hungary. The Polish cases are Partec Rockwool, PLM, Bulten Tools, and Vattenfall, while Svedala and Getinge belong to Hungary.

The cases have been described in different phases following the conceptual framework, developed in chapter six. All cases we present in three phases except Svedala where there are two phases. In the later case, neither the alliance nor the partners could be traced. Among the cases, level of performance varied. Getinge is the only case where the partners continued with the same alliance and the ownership structure remained unchanged. In Partec, the foreign partner acquired the local shares to establish a wholly owned subsidiary, and in Bulten Tool, the foreign partner became the major owner to have control over the company. Partec Rockwool and Vattenfall had been sold to other companies after amicable settlement between the partners.

Here we consider the various ways in which airlines integrate their business activities. The thin markets, long distances, poor infrastructure, and challenging terrain over which many airlines based in developing countries operate can make it difficult to reap the economies of scale, scope, and density that carriers in more developed nations enjoy. There also remain institutional barriers to cross border trade in airline services. As a response to this, airlines from developing regions “cooperate” in a number of ways. This may involve multinational ownership, code sharing, or joint ventures. The rationale for these actions, together with discussion of the outcomes of some of them, is considered here.