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We discuss the ‘gloomy’ side of firms’ embeddedness in networks of inter-firm partnerships. We propose a nested understanding of the effects of three levels of…
We discuss the ‘gloomy’ side of firms’ embeddedness in networks of inter-firm partnerships. We propose a nested understanding of the effects of three levels of overembeddedness – environmental, inter-organizational and dyadic overembeddedness – on subsequent inter-firm partnership formation and argue for a joint examination of these three levels and their interactions over time. As a whole, increases in firms’ embeddedness will generate decreasing returns to the firms involved, prompting (i) the search for and attachment to novel partners and (ii) the dissolution of extant partnerships. On the flipside, overembeddedness thus sparks network evolution – by cueing firms to look beyond their embedded partnerships.
Firms tend to transfer more knowledge in technology joint ventures compared to contractual technology agreements. Using insights from new institutional economics, this…
Firms tend to transfer more knowledge in technology joint ventures compared to contractual technology agreements. Using insights from new institutional economics, this chapter explores to what extent the alliance governance association with interfirm knowledge transfer is sensitive to an evolving industry norm of collaboration connected to the logic of open innovation. The chapter examines 1,888 dyad-year observations on firms engaged in technology alliances in the U.S. information technology industry during 1980–1999. Using fixed effects linear models, it analyzes longitudinal changes in the alliance governance association with interfirm knowledge transfer, and how such changes vary in magnitude across bilateral versus multipartner alliances, and across computers, telecommunications equipment, software, and microelectronics subsectors. Increases in industry-level alliance activity during 1980–1999 improved the knowledge transfer performance of contractual technology agreements relative to more hierarchical equity joint ventures. This effect was concentrated in bilateral rather than multipartner alliances, and in the software and microelectronics rather than computers and telecommunications equipment subsectors. Therefore, an evolving industry norm of collaboration may sometimes make more arms-length governance of a technology alliance a credible substitute for equity ownership, which can reduce the costs of interfirm R&D. Overall, the chapter shows that the performance of material practices that constitute innovation ecosystems, such as interfirm technology alliances, may differ over time subject to prevailing institutional norms of open innovation. This finding generates novel implications for the literatures on alliances, open innovation, and innovation ecosystems.
Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination…
Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.
There is a tension between the literatures on incomplete contracting and transactions cost economics regarding the importance of ex post governance and the extent to which…
There is a tension between the literatures on incomplete contracting and transactions cost economics regarding the importance of ex post governance and the extent to which formal theories of incomplete contracting capture salient aspects of exchange relations. In this paper, we empirically examine how firms structure joint R&D agreements to illuminate how contracts can be incomplete and how governance can matter. We employ a dataset of 96 contracts to construct a taxonomy of the types of mechanisms firms use in organizing collaborative R&D, and indicate how groups of mechanisms line up with various types of contracting hazards. The results suggest that the allocation of property rights over innovations at the time of contracting between R&D partners is an important aspect of contract design. But they also suggest that weak property rights admit scope for other dimensions of contract. In particular, the research indicates that while knowledge spillovers may give rise to appropriability hazards, efforts to contain or channel knowledge spillovers may enable joint venture members to strategically block other members’ follow-on commercialization or research. Firms design joint R&D governance mechanisms to balance spillover hazards and strategic blocking.
To maintain and enhance innovation performance, many firms nowadays look for resources from external sources such as strategic alliances and regional network embeddedness…
To maintain and enhance innovation performance, many firms nowadays look for resources from external sources such as strategic alliances and regional network embeddedness. While considering the important interdependencies among different alliances, research has established an alliance portfolio perspective. From an alliance portfolio perspective, firms can consciously configure the dimensions of their alliance portfolios such as partner characteristics, relational properties, or structural properties. However, within the context of alliance portfolio configuration, the role of regional networks has been largely overlooked. As most high-tech firms are regionally clustered, this is an important research gap. In addressing this gap, this study explores the link between regional network density, alliance portfolio configuration, and its contribution to firm innovation performance. We examine how regional network density and alliance partner diversity influences firm level innovation output. We also investigate the moderating effect of overall network partner status and partner diversity on the link between regional network density and innovation performance. Our empirical evidence is derived from a longitudinal quantitative study of 1,233 German biotechnology firms. We find that regional network density and alliance partner diversity has an inverted U-shape effect on firm level innovation performance. However, overall network status as well as alliance partner diversity negatively moderates the link between regional network density and innovation output. Thus, our study contributes to a better understanding of the link between regional networks, alliance portfolio configuration, and firm level innovation performance.
Strategic alliances involve uncertainty, interdependence, and vulnerability, which often create adverse situations. This paper seeks to understand how alliance managers…
Strategic alliances involve uncertainty, interdependence, and vulnerability, which often create adverse situations. This paper seeks to understand how alliance managers respond to these adverse situations by examining the influence of four exchange variables on response strategies.
A scenario‐based experiment provides empirical support for a typology consisting of seven conceptually and empirically distinct response strategies: exit, opportunism, aggressive voice, creative voice, considerate voice, patience, and neglect.
The results indicate that economic satisfaction, social satisfaction, alliance‐specific investments, and the availability of attractive alternatives differentially and interactively affect response strategies.
The study offers two main contributions to alliance literature. First, the seven response strategies accurately represent reactions that alliance managers use to deal with adverse situations. Second, the study findings validate and extend previous alliance research by highlighting that a comprehensive response strategy typology is necessary to disentangle the effects of the four exchange conditions on response strategy use, which fosters theory development and managers' ability to manage their alliances effectively.
The study contributes to the process perspective on strategic alliances by highlighting the various response strategies that alliance managers use to deal with adverse situations and their antecedents.
The purposes of this paper are to provide first a detailed description of the use of interfirm cooperation by a large sample of Dutch firms of different sizes and from…
The purposes of this paper are to provide first a detailed description of the use of interfirm cooperation by a large sample of Dutch firms of different sizes and from different industries, and second, to examine the governance role of financial managers in the management of cooperative arrangements.
Research questions are developed based on a review of previous literature and data were collected using a questionnaire administered to a large sample of Dutch firms.
The paper finds that the sample firms are generally well engaged in various types of interfirm cooperation, in particular in outsourcing arrangements and joint ventures. In addition, larger firms are on average involved in more types of cooperation than smaller firms are, and different cooperative activities and forms are frequently used in combination. On average, financial managers report to be actively involved in the management of interfirm cooperation, which ranges from monitoring yearly results, providing advice, supervising performance, to managing daily operations of the cooperation. In this management role, they mostly use frequent detailed financial and non‐financial performance information, which often not only relates to their own firm, but also to the partner firm.
This research provides evidence of the extensive use of interfirm cooperation in practice and identifies an important governance role of financial managers in the management of interfirm cooperation. An analysis of differences in this role across different types of cooperation and functional levels of financial managers is provided.
The findings provide new insights into firms' use of a broad range of interfirm cooperative activities and into the governance role financial managers in these activities. Consistent with prior studies that document an increasing propensity of firms to engage in cooperative arrangements, the results support that interfirm cooperation constitutes an important area for research in accounting. This paper provides several suggestions for future research aimed at improving researchers' and practitioners' understanding of the management of interfirm cooperation.