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Article
Publication date: 23 May 2008

Bing‐Sheng Teng and T.K. Das

Strategic alliances have a variety of governance structures that can be broadly classified as joint ventures, minority equity alliances, and contractual alliances. This paper…

7449

Abstract

Purpose

Strategic alliances have a variety of governance structures that can be broadly classified as joint ventures, minority equity alliances, and contractual alliances. This paper seeks to empirically examine the roles of four key determinants of governance structure choice, namely, joint R&D and joint marketing objectives, alliance management experience, and international partners.

Design/methodology/approach

Several hypotheses are developed regarding governance structure choice and are tested with data from 765 alliances. A multinomial logistic regression (logit) model is used for statistical analysis, with five control variables.

Findings

All hypotheses are supported, so that the roles of alliance objectives, alliance management experience, and international partners are demonstrated as being significant as determinants of governance structure choice in alliances.

Research limitations/implications

Limitations stem from the data being from a single source, one that also relies on press announcements that may be biased toward larger alliances.

Practical implications

Briefly, alliance managers should find it useful to assess the relative presence of the four determinants of structural choice studied in this investigation in order to make an informed selection of the appropriate governance structure.

Originality/value

The study contributes to the knowledge of the key determinants of governance structure choice in strategic alliances by examining empirically, with a large sample of alliances from various industries, the significant roles of four factors, namely, joint R&D and joint marketing objectives, alliance management experience, and international partners.

Details

Management Decision, vol. 46 no. 5
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 3 October 2016

Frano Barbic, Antonio Hidalgo and Raffaella Cagliano

The purpose of this paper is to examine the dynamics of contractual and relational mechanisms during different phases of multi-partner R&D alliances.

Abstract

Purpose

The purpose of this paper is to examine the dynamics of contractual and relational mechanisms during different phases of multi-partner R&D alliances.

Design/methodology/approach

The paper uses a longitudinal single case study to gain in-depth understanding of which governance mechanisms are best suited for different phases of alliance collaboration. Applying a retrospective strategy for data collection, three rounds of interviews were conducted with representatives of all partner firms. The data were complemented by documentary analysis of both internal documents and publicly available information.

Findings

The findings suggest that the use of governance mechanisms in multi-partner alliances depends on the characteristics of alliance phases. Relational governance is most important in the exploration and development phases, while the importance of contractual governance comes to the fore during the development and finalization phases. Despite the predominance of one type of mechanism, the findings support a complementary perspective of governance mechanisms.

Research limitations/implications

The results of a single case study offer limited generalizability and should thus be treated with caution. More cross-industry, cross-national studies should be conducted to verify the applicability of the findings to other industries, cultures and geographical contexts.

Practical implications

Managers should be aware that different phases of the alliance life cycle have different control and coordination needs, and should rely on different mechanisms during different phases of the alliance.

Originality/value

The authors have synthesized insights from various perspectives (transaction cost economics, organization theory, social exchange theory), and developed a multidisciplinary approach to multi-partner collaborations.

Details

Baltic Journal of Management, vol. 11 no. 4
Type: Research Article
ISSN: 1746-5265

Keywords

Article
Publication date: 3 October 2008

Robert A.W. Kok and Paul A. Creemers

The purpose of this exploratory study is explaining the effects of control and interdependence on decision making at the level of product innovation projects in dyadic strategic…

2331

Abstract

Purpose

The purpose of this exploratory study is explaining the effects of control and interdependence on decision making at the level of product innovation projects in dyadic strategic alliances.

Design/methodology/approach

Drawing on alliance research, strategic decision‐making research and product innovation literature a conceptual framework is developed using a multiple case research methodology.

Findings

The empirical case results indicate that decision‐making effectiveness in product innovation projects is dependent on the nature of the decision‐making process which, in turn, is affected by alliance governance structure characteristics.

Research limitation/implications

The case research results only gives an in‐depth understanding of the nature of the effects. A large‐scale quantitative study is needed to arrive at generalizations taking into account industry‐specific and firm‐specific factors.

Practical implications

Managers may want to take the effects on decision making into account when deciding on the alliance governance structure for a new product innovation project.

Originality/value

This paper contributes to earlier research first, by viewing product innovation as a joint activity for which not only one organization is responsible, and second, by relating alliance governance structure to decision making beyond the strategic management level at the level of product innovation projects.

Details

European Journal of Innovation Management, vol. 11 no. 4
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 22 September 2023

Xinmin Peng, Lumin He, Shuai Ma and Martin Lockett

An alliance portfolio can help latecomer firms to acquire the necessary knowledge and resources to catch up with market leaders. However, how latecomer firms construct an alliance

Abstract

Purpose

An alliance portfolio can help latecomer firms to acquire the necessary knowledge and resources to catch up with market leaders. However, how latecomer firms construct an alliance portfolio in terms of the nature of windows of opportunity has not been fully analyzed. This paper aims to explore how latecomer firms can build appropriate coalitions according to the nature of the window of opportunity to achieve technological catch-up in different catch-up phases.

Design/methodology/approach

Based on a longitudinal case study from 1984 to 2018 of Sunny Group, now a leading manufacturer of integrated optical components and products, this paper explores the process of technological catch-up of latecomer firms building different types of alliance portfolio in different windows of opportunity.

Findings

This paper finds that there is a sequence when latecomers build an alliance portfolio in the process of catch-up. When the uncertainty of opportunity increases, the governance mechanism of the alliance portfolio will change from contractual to equity-based. Also, latecomer firms build market-dominated and technology-dominated alliance portfolios to overcome their market and technology disadvantages, respectively.

Originality/value

These conclusions not only enrich the theory of latecomer catch-up from the perspective of windows of opportunity but also expand research on alliance portfolio processes from a temporal perspective.

Details

Nankai Business Review International, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-8749

Keywords

Book part
Publication date: 22 September 2009

Joanne E. Oxley

A key argument in transaction cost economics (TCE) is that transactions are aligned with governance structures so as to effect a discriminating – mainly transaction cost…

Abstract

A key argument in transaction cost economics (TCE) is that transactions are aligned with governance structures so as to effect a discriminating – mainly transaction cost economizing – match (Williamson, 1991). The archetypical problem in TCE is the vertical integration or “make-versus-buy” decision, and the focus of transaction cost economizing in this context is on mitigation of “holdup” problems associated with investments in specific assets (Klein, Crawford, & Alchian, 1978; Williamson, 1985). However, this asset specificity condition in only one example (albeit a significant one) of a more general class of contractual hazards. Indeed, in his most recent discussion of the TCE agenda, Williamson (1996, p. 3) suggests that “identification, explication, and mitigation of contractual hazards – which take many forms, many of which long went unremarked – are central to the exercise.”

Details

Economic Institutions of Strategy
Type: Book
ISBN: 978-1-84855-487-0

Article
Publication date: 1 June 2015

Jun Jin, Max von Zedtwitz and Li Choy Chong

The purpose of this paper is to investigate how international R & D alliances are formed during industry transition from the point of view of the local Chinese partner…

Abstract

Purpose

The purpose of this paper is to investigate how international R & D alliances are formed during industry transition from the point of view of the local Chinese partner.

Design/methodology/approach

Review of industry data provided by Chinese Statistical Office coupled with four in-depth case studies.

Findings

The nature of the technology, the characteristics of partners and the previous cooperation experience between partners are significantly related to the R & D alliance formation. The research also suggests that during this fast-growing transition period, Chinese local firms preferred non-equity contractual agreements over equity joint venture such as R & D alliance modes, and Chinese local firms favoured American and European multinational corporations (MNCs) as their alliance partners over MNCs from other countries, including the highly developed Japan and Korea.

Research limitations/implications

Single-industry focus (telecommunications), and anonymization of cases because of confidentiality of case firms. Single-country focus (China).

Practical implications

Firms in China and other emerging countries can improve their technological capability (TC) by choice to facilitate future alliance formation to access and learn the latest technology from their alliance partners, especially during the transition period of an industry and when mature and emerging technologies co-exist.

Originality/value

This paper refines alliance theory by focusing on an industry in transition and analyses formation decision factors from the point of view of the smaller domestic partner – usually studies do not differentiate as to industry maturity and inequality between partners.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 8 no. 2
Type: Research Article
ISSN: 1754-4408

Keywords

Article
Publication date: 1 March 2004

Håkan Linnarsson and Andreas Werr

Alliances are an increasingly common way of organizing the uncertain exploration phase of radical innovation. It may, however, be argued that there is inherent tension between the…

2926

Abstract

Alliances are an increasingly common way of organizing the uncertain exploration phase of radical innovation. It may, however, be argued that there is inherent tension between the logic of alliances and the logic of innovation. Whereas innovation is generally argued to require flexibility, political protection and extensive communication, the commonly mentioned key characteristics of alliances are detailed contractual regulation, political struggles and limited information exchange. Based on an in‐depth case study of a largely successful alliance for innovation between a European bank and a European telecommunications operator, this paper argues that the tensions between an innovation logic and an alliance logic may be overcome by creating a multilevel governance structure for the alliance, with a learning agenda on both the operational and strategic levels. The different levels of the structure are described and their contribution to the success of the alliance discussed.

Details

European Journal of Innovation Management, vol. 7 no. 1
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 13 May 2014

Senthil Kumar Muthusamy

The alliance governance – whether equity or non-equity based – through which an alliance is governed serves as a mechanism to protect a firm from partner's opportunistic behavior…

Abstract

Purpose

The alliance governance – whether equity or non-equity based – through which an alliance is governed serves as a mechanism to protect a firm from partner's opportunistic behavior, manage resource dependence and facilitate knowledge sharing. Alliance governance structure also reflects the risk, reward and control that partners perceive in a relationship. In light of the conflicts and instabilities reported in strategic alliances, the purpose of this paper is to examine the interorganizational domain that affects the endurance and continuity of collaboration and explain how the alliance interface contexts determines the structuring of alliance governance.

Design/methodology/approach

An empirical examination of 179 strategic alliances, using survey and archival data conducted to test the hypothesized relationship between the choice of governance structure and the complexity of alliance task, balance of power and competitive scope between partners.

Findings

A multinomial logistic regression of the hypothesized variables revealed that the complexity of alliance task, balance of power, and competitive scope between partners are significantly related to the mode of alliance governance – whether non-equity, minority-equity, or joint venture.

Originality/value

This study makes a significant contribution to the understanding of the relationships between the contextual factors such as the alliance task, power dynamics, and competitive scope that shape the collaboration and structuring of appropriate alliance governance mode. Results of the study provide strong evidence for the hypotheses that the greater the task complexity, and greater the balance of power and scope of competition between partners, the alliance governance tends to be equity or joint venture based. Consistent with recommendations of several organizational scholars that the theory of alliance governance and performance must shift from individual partner firm to interaction domain and interface contexts (Luo, 2002; Gray and Wood, 1991; Oxley and Sampson, 2004), this study integrally examined the dyadic issues such as balance of power, task complexity, and the competitive scope and the dynamic role they play in decisions pertaining to alliance governance. While many extant studies on the choice of alliance governance structure have employed secondary data sources, the study employed data from survey measures (Gulati, 1995; Teng and Das, 2008; Oxley and Sampson, 2004) enhancing the validity of the results.

Details

Journal of Strategy and Management, vol. 7 no. 2
Type: Research Article
ISSN: 1755-425X

Keywords

Book part
Publication date: 22 September 2009

Joanne E. Oxley

This chapter provides a retrospective analysis of Oxley (1997), placing the article in context, highlighting its main contributions, describing its impact on the strategy…

Abstract

This chapter provides a retrospective analysis of Oxley (1997), placing the article in context, highlighting its main contributions, describing its impact on the strategy literature, and critiquing the research from the viewpoint of today. Recent advances in the analysis of alliance governance are surveyed, and opportunities for future research are suggested.

Details

Economic Institutions of Strategy
Type: Book
ISBN: 978-1-84855-487-0

Open Access
Article
Publication date: 9 August 2023

Ignacio Castro-Abancéns, Cristóbal Casanueva and Ángeles Gallego

Multinational enterprises (MNEs) establish a wide range of alliances to access the critical resources that they may need at any one time. Although inter-organizational…

Abstract

Purpose

Multinational enterprises (MNEs) establish a wide range of alliances to access the critical resources that they may need at any one time. Although inter-organizational relationships (IORs) constitute the channels through which social capital flows, MNEs should consider which mechanisms or characteristics of the relations facilitate their actual mobilization.

Design/methodology/approach

A definition of alliance types yielded the parameters for an ordinary least squares regression of a sample from top global-reach MNEs from the airline industry.

Findings

The results showed that certain kind of alliances favored the actual mobilization of social capital.

Practical implications

Managers of MNEs must select the type of IOR taking into account the objective they pursue and the type of activity they will include.

Originality/value

Analyzing the factors that influence the degree of mobilization of social capital and how MNEs actually use the resources of the partners require the establishment of a theoretical framework and the development of empirical evidence.

Propósito

las Empresas Multinacionales (MNEs) establecen una amplia gama de alianzas para acceder a los recursos críticos externos que puedan necesitar en cualquier memento. Las MNEs deben considerar qué mecanismos o características de las relaciones facilitan su movilización real.

Diseño/metodología/enfoque

una definición de los tipos de alianza produjo los parámetros para una regresión de mínimos cuadrados ordinarios de una muestra de las principales MNEs de alcance global de la industria de las aerolíneas.

Resultados

Los resultados mostraron que ciertos tipos de alianzas favorecieron la movilización real del capital social.

Originalidad/valor

Analizar los factores que influyen en el grado de movilización del capital social y cómo las MNEs utilizan en la práctica los recursos de sus socios, requiere del establecimiento de un marco teórico y el desarrollo de evidencia empírica.

1 – 10 of over 5000