Showing papers on "Strategic alliance published in 1999"

Interorganizational Endorsements and the Performance of Entrepreneurial Ventures

Abstract: This paper investigates how the interorganizational networks of young companies affect their ability to acquire the resources necessary for survival and growth. We propose that, faced with great uncertainty about the quality of young companies, third parties rely on the prominence of the affiliates of those companies to make judgments about their quality and that young companies “endorsed” by prominent exchange partners will perform better than otherwise comparable ventures that lack prominent associates. Results of an empirical examination of the rate of initial public offering (IPO) and the market capitalization at IPO of the members of a large sample of venture-capital-backed biotechnology firms show that privately held biotech firms with prominent strategic alliance partners and organizational equity investors go to IPO faster and earn greater valuations at IPO than firms that lack such connections. We also empirically demonstrate that much of the benefit of having prominent affiliates stems from the ...

Network location and learning: the influence of network resources and firm capabilities on alliance formation

Abstract: This paper presents a dynamic, firm-level study of the role of network resources in determining alliance formation. Such resources inhere not so much within the firm but reside in the interfirm networks in which firms are placed. Data from extensive fieldwork show that by influencing the extent to which firms have access to information about potential partners, such resources are an important catalyst for new alliances, especially because alliances entail considerable hazards. This study also assesses the importance of firms’ capabilities with alliance formation and material resources as determinants of their alliance decisions. I test this dynamic framework and its hypotheses about the role of time-varying network resources and firm capabilities with comprehensive longitudinal multi-industry data on the formation of strategic alliances by a panel of firms between 1970 and 1989. The results confirm field observations that accumulated network resources arising from firm participation in the network of accumulated prior alliances are influential in firms’ decisions to enter into new alliances. This study highlights the importance of network resources that firms derive from their embeddedness in networks for explaining their strategic behavior. Copyright © 1999 John Wiley & Sons, Ltd.

Ambiguity and the process of knowledge transfer in strategic alliances

Abstract: This research examines the role played by the ‘causally ambiguous’ nature of knowledge in the process of knowledge transfer between strategic alliance partners. Based on a cross-sectional sample of 147 multinationals and a structural equation methodology, this study empirically investigates the simultaneous effects of knowledge ambiguity and its antecedents—tacitness, asset specificity, prior experience, complexity, partner protectiveness, cultural distance, and organizational distance—on technological knowledge transfer. In contrast to past research that generally assumed a direct relation between these explanatory variables and transfer outcomes, this study’s findings highlight the critical role played by knowledge ambiguity as a full mediator of tacitness, prior experience, complexity, cultural distance, and organizational distance on knowledge transfer. These significant effects are further found to be moderated by the firm’s level of collaborative know-how, its learning capacity, and the duration of the alliance. Copyright © 1999 John Wiley & Sons, Ltd.

Cooperative or Controlling? The Effects of CEO-Board Relations and the Content of Interlocks on the Formation of Joint Ventures

Abstract: This study examines the influence of the social network of board interlocks on strategic alliance formation. Our theoretical framework suggests how board interlock ties to other firms can increase ...

Corporate Equity Ownership, Strategic Alliances and Product Market Relationships

Abstract: This paper examines long-term block ownership by corporations and performance changes in firms with corporate block owners. We also examine potential reasons for corporate ownership including benefits in product market relationships, alleviation of financing constraints, and board monitoring by corporate owners. We find the largest significant increases in targets' stock prices, investment, and operating profitability when ownership is combined with product market relationships between purchasing and target firms, especially in industries with high research and development. Our findings are consistent with the conclusion that block ownership by corporations has significant benefits in product market relationships.

Cooperative Strategy: Competing Successfully Through Strategic Alliances

Abstract: What is a Strategic Alliance? The Era of Strategic Alliances. Interfirm Cooperation: Theoretical Contributions. The Main Types of Alliance. International Expansion Joint Ventures. Vertical Partnerships. Cross--Industry Agreements. Shared--Supply Alliances. Quasi--Concentration Alliances. Complementary Alliances. Conclusion: Anticipating the Evolutions and Outcomes of Strategic Alliances. Bibliography. Index.

Interorganizational Endorsements and the Performance of Entrepreneurial Ventures

Abstract: Examines how the performance of young firms is influenced by their interorganizational exchange networks and whether the prominence of business partners affects the ability to acquire critical resources, particularly capital. The following four hypotheses are posited: (1) the greater the prominence of the strategic alliance partners of a young company, the better the performance of the new venture; (2) the greater the prominence of the organizations that have acquired ownership stakes in a young company, the better the performance of the new venture; (3) the greater the prominence of the investment bank of a young company, the better the performance of the new venture; and (4) the greater the uncertainty about the quality of the company, the larger the impact of the prominence of the firm's exchange partners on its performance. Data used to test these hypotheses were gathered from 301 young, venture-capital-backed biotechnology firms. Results from the empirical analysis provide strong evidence that the characteristics and prominence of organizations affiliated with young firms have a direct affect on performance. Firms launch IPOs faster and the IPOs earn greater market value with reputable partners. In addition, the advantage of having prominent affiliates is contingent on the level of uncertainty about the startup's quality. The greater the uncertainty, the more that outside evaluators depend upon the prominence of affiliates to draw inferences about the firm's quality. It is clearly demonstrated that sponsorship has the capacity to substitute for accomplishment and experience as a basis for young firms' success. However, experience and accomplishments take on added significance for firms that lack notable sponsors. (SFL)

Dangers of Dependence: The Impact of Strategic Alliance Use by Small Technology-Based Firms

Abstract: As managers confront a competitive environment that is increasingly complex, globally centered, and technologically uncertain, there is a critical need for dynamic, flexible, and proactive responses. As a result, many companies are turning to strategic alliances. Evidence suggests that this is a reasonable choice. Properly utilized, alliances can provide a number of advantages over traditional organizational arrangements including faster market penetration (Gomes-Casseres 1989), the sharing of financial risk (Jorde and Teece 1989), possibilities for technology transfer (Lei and Slocum 1992), and increased production efficiencies (Datta 1988). Such arrangements may be particularly suited to early stage, technology-based firms (ESTBFs). These firms generally have innovative ideas and products but often lack the resources and experience to fully capitalize on them in a timely fashion. Alliances can work to benefit ESTBFs by allowing them to build on their strengths and overcome their weaknesses. Despite these proposed advantages and the increased use of alliances, however, little insight has been gained regarding the overall impact of alliance use on firm success. To date, most research on alliances has focused on issues related to the success or failure of the alliance itself (see, for example, Tyler and Steensma 1995; Zaheer and Venkatraman 1995; Lyons 1991). While this work has been beneficial in helping our understanding of alliances, it still leaves unanswered questions regarding how firms can gain the greatest benefits from alliance relationships. Accordingly, this study examines the use of strategic alliances by ESTBFs and explores several factors that might indicate how and when alliances might benefit such firms. The study begins by reviewing the relevant literature to develop hypotheses regarding the use and benefit of alliance arrangements. Of particular importance in this regard is work from the resource dependence perspective (Pfeffer and Salancik 1978). Attention then turns to the details of a study that tests these hypotheses. Results are reported and implications of these results explored. Literature Review and Hypotheses Alliance Use by ESTBFs ESTBFs bring a unique set of competencies to the competitive arena. Unencumbered by established processes and routines, such firms typically have great success in the innovative application of new technology (Knight 1989). As a result, these firms often provide the starting point for radical change within industries and serve as a source of inspiration and revitalization (Moore and Garnsey 1993). As a byproduct, ESTBFs also benefit society through higher paying jobs, increased national competitiveness, and increasing community tax bases. At the same time, however, ESTBFs face a unique set of challenges. Financially, they often fall between the cracks of traditional funding sources (Miles and Preece 1995). As well, they are often limited in their managerial expertise, which tends to focus on technological rather than general business concerns. While their technologies are often innovative, the firms do not always have the necessary production capabilities to leverage them to the fullest potential. Furthermore, the innovative nature of their products often means that large, readily accessible markets have not yet been established, and the firm may need to seek out a number of smaller market niches if it wants to be successful and recoup its investment. Taken together, this combination of strengths and weaknesses should make ESTBFs prime candidates for strategic alliances (Kirni 1995). While it is clear that ESTBFs have something to bring to a relationship, it is also clear that they have deficiencies that might be addressed by an alliance partner (Brown and Butler 1995). The independence-oriented owner/managers of ESTBFs may appreciate having the ability to build on their core competencies and capabilities while retaining their existence as an autonomous entity. …

A stakeholder win–win approach to software engineering education

Abstract: We have been applying the stakeholder win–win approach to software engineering education. The key stakeholders we are trying to simultaneously satisfy are the studentss the industry recipients of our graduatess the software engineering community as parties interested in improved practicess and ourselves as instructors and teaching assistants. In order to satisfy the objectives or win conditions of these stakeholders, we have formed a strategic alliance with the USC Libraries to have software engineering student teams work with Library clients to define, develop, and transition USC digital library applications into operational use. This adds another set of key stakeholders: the Library clients of our class projects. This paper summarizes our experience in developing, conducting, and iterating the course. It concludes by evaluating the degree to which we have been able to meet the stakeholderddetermined course objectives.

Formation of Strategic Alliances in Business Services: Towards a New Client-Oriented Conceptual Framework

Abstract: Interjlrm collaboration has become an increasingly common organisational form in the pursuit of competitive advantage. Since most previous research has concentrated upon the manufacturing sector; we seek to redress this imbalance by considering business services. We review several theoretical frameworks, and argue that the static network theory literature fails to recognise that relations between partners and with the client are as crucial as the hybrid-environment interjiace and, therefore, cannot explain the emergence of hybrid organisational forms. Most fundamentally we argue that the client must be incorporated within the conceptual framework. Two stages of the evolution of the strategic alliance (SA)-client relationship are important: (i) formation and (ii) subsequent development. The key decision for the firms in the SA is how to enter into joint production with the client. The peflormance of a SA cannot be judged purely in terms of the participants since a vital dimension of success is how well the...

Dynamic strategic resources : development, diffusion and integration

Abstract: The Development and Use of Strategic Resources (M. Hitt, et al.). ORGANIZATIONAL RESOURCES: OUTCOMES AND STRATEGY. Core Competencies and the Knowledge of the Firm (M. Oliveira Junior). Why Resources Matter: An Empirical Study of the Influence of Knowledge--Based Resources on New Market Entry (S. Marsh & A. Ranft). The Relative Contributions of Inimitable, Non--Transferable and Non--Substitutable Resources to Profitability and Market Performance (R. Durand). The Evolution of Strategy in a Newly Transformed Organization: The Interplay Between Strategy Development and Corporate Culture (M. Schwarz & J. Nandhakumar). Different Industries and Different Customer Values Require Different Resources: Towards the Marriage of Strategic Positioning Theory and the Resource--Based View of the Firm (J. Wilson). Does Sticking to the Knitting Unravel Your Corporate Reputation? (S. Carter & Wm. G. Sanders). Getting There by Lurches: The Rugged Road to Globalization (P. Dubini & I. MacMillan). ORGANIZATIONAL RESOURCES: DEVELOPMENT, COMMITMENT AND GOVERNANCE. Transition Processes Towards the N--Form Corporation: Strategic Implications for Knowledge Flows (F. van den Bosch & R. van Wijk). "Creative Destruction" or "Creative Cooperation"?: A Tale of Two Industries (F. Rothaermel). Design as a Strategic Alliance: Expanding the Creative Capability of the Firm (B. Jevnaker & M. Bruce). The Timing of Strategic Alliances (P. Bierly & E. Kessler). Governance of RTransaction Cost, Resources, Inertia and Social Capital (T. Keil). Salient Options: Strategic Resource Allocation Under Uncertainty (R. McGrath & P. Dubini). The Influence of Leveraging Tacit Overseas Knowledge for Global New Product Development Capability: An Empirical Examination (M. Subramaniam & N. Venkatraman). What is the Role of Performance Goals in Product Development?: A Study of Japanese Camera Manufacturers (K. Koga & A. Davila). Unnatural Acts: Building the Mature Firma s Capability for Breakthrough Innovation (R. Leifer & M. Rice). Subject Index.

Metrics for strategic alliance control

Abstract: The paper develops a feedback control model of product development alliance management. The model allows us to place alliance review, and the metrics for this review, in the context of the control problems facing the alliance manager. We then specify a set of alliance review metrics, and outline the characteristics which they must have. Managers have a pressing need for such metrics, given the management challenges of alliances and the difficulties companies face in making them work effectively. The control model is then expanded to allow for changes in the nature of the alliance itself and inter-project learning. The development of the models and of the metrics is guided by the experiences of a large electronic systems manufacturer in alliances with a number of smaller strategic technology suppliers.

Strategic alliance and dependency in design and manufacture: The Rover‐Honda case

Abstract: The movement of firms towards joint ventures and collaborative projects has been a feature of the 1990s. Such agreements allow a means of spreading the costs and risks associated with new product development, sharing costly manufacturing capacity and facilities, and may also provide access to new capabilities. However, there are examples when the relationship is not a success for one of the parties involved. If firms enter joint ventures from a position of weakness or without a concerted strategy, they can become reliant on their partner. This was the case with Rover and its links to Honda. Because of financial weakness Rover’s design and manufacturing capabilities were eroded as the majority of its products were replaced with Honda developed models. This case provides important lessons and warnings for other firms seeking strategic alliances, and gives researchers an insight into the complex interaction between firms involved in such a relationship.

Technological Prestige and the Accumulation of Alliance Capital

Abstract: In this chapter, I argue that the prestige of an actor is a primary determinant of its ability to access resources held by others. The reason for this is that relationships with prestigious actors are inherently valuable because they convey status to affiliates, and so prestigious actors have many opportunities to form new relationships in which they exchange status for other kinds of resources. The chapter contains an empirical analysis that shows that high prestige semiconductor firms establish many license alliances in which they gain the rights to produce and sell the proprietary technologies of competing organizations. If we conceive of a portfolio of interorganizational access relationships as a component of corporate social capital, the findings show that social capital accrues at a high rate to high status organizations.

Strategic Alliances and New Product Development: An Empirical Study of the U.S. Semiconductor Start-Up Firms

Abstract: INTRODUCTION A growing number of studies have begun to probe the impact of strategic alliance activities on technological learning and product development (e.g., Brown & Eisenhardt, 1997; Deeds & Hill, 1996; Kotabe & Swan, 1995; Lei, 1997; Mowery, Oxley & Silverman, 1996; Senker & Sharp, 1997; Steensma, 1996). This increased attention is long overdue given the importance of both strategic alliances (Barley, Feeman & Hybels, 1992; Contractor & Lorange, 1988; Gomes-Casseres, 1996; Hamel, Doz & Prahalad, 1989; Moore, 1996; Mowery et al., 1996; Nohria & Eccles, 1992; Ohmae, 1989; Teece, 1992); and new product development (Brown & Eisenhardt, 1995, 1997; Eisenhardt & Tabrizi, 1995; Kotabe & Swan, 1995; Lei, 1997). So far, our knowledge of the linkage between strategic alliances and product development is still limited. Scholars disagree on whether strategic alliances enable firms to learn and to facilitate product development (e.g., Grant & Baden-Fuller, 1995; Kogut, 1988; Lei, 1997). Empirical studies also present a conflicting picture of the impact of strategic alliances on new product development (e.g., Brown & Eisenhardt, 1997; Deeds & Hill, 1996; Kotabe & Swan, 1995; Mowery et al., 1996). To untangle the confusion in the extant literature, it is important to differentiate between different sources of learning in strategic alliances. A firm may learn from its alliance partners' organizational capabilities in different functional areas, such as new technologies, marketing skills, and manufacturing abilities (we call this content knowledge and learning). A firm may also gain knowledge from the management process of alliance activities (we call this process knowledge and learning). In the current study we used the difference between content and process learning as a departure point in an effort to extend our understanding of the impact of strategic alliances on new product development.(1) Using US semiconductor industry startup firms in the 1980s, we empirically assess the impact of strategic alliances on new product development. This study finds that content learning in technological fields has a positive impact on product development while content learning in manufacturing and marketing areas shows no impact on product development. In addition, this study finds that process learning, measured by the comprehensiveness of alliance activities, appears to enable firms to gain valuable managerial process knowledge and in turn enhance their new product development. The following section provides a literature review that forms the basis for the theoretical rationale and hypotheses developed in this paper. The method section details the study sample and its relevance and the research strategy. The results section presents empirical findings. The paper concludes with a discussion of the study's findings and future research directions. In this research, strategic alliances are defined as interfirm collaboration with or without shared equity. Such activities include joint RD Pisano and Teece, 1988; Shan, 1990). LITERATURE REVIEW AND THEORY DEVELOPMENT Previous studies on strategic alliances point out that turbulent external environments (e.g., Emery & Trist, 1965; McCann & Selsky, 1984), shrinking product life cycles, exploding RD Hamel et al. …

A national initiative to set priorities for R&D in nursing, midwifery and health visiting: Investigating the method

Abstract: The aim of this paper is to provide a report of the progress made in the first phase of the national initiative established to identify priorities for R&D for the nursing professions, which was reported earlier in this journal (Kitson et al., 1997). Here we describe how the methods were used, discuss the primary and secondary results achieved in the first phase of the initiative and present an outline of how it is proposed to take these results forward in a second and more strategic phase. The aim of the first phase was to explore the feasibility of establishing a national systematic process for identifying priorities for R&D in the nursing professions*. It is now proposed to establish a strategic alliance for research in nursing, midwifery and health visiting and these proposals are summarised at the end of the paper.

Survival of the biggest: business policy, managerial discourse, and uncertainty in a global business alliance

Abstract: By virtue of their crossing national and cultural borders as a matter of normal practice and growth, transnational corporations' internal arrangements are constitutive of institutional, commercial, and cultural transnational flows simultaneously. This article examines ethnographically a visible instance of such growth, in the formation of a "global strategic alliance" between an American and a French advertising agency. The article illustrates how certain managerial notions (for example, globalization, flexibility, customer orientation) are employed as "regularizing" tools within the corporation; they are self-consciously adopted by managers for purposes of reducing uncertainty in the face of rapid institutional growth. The author then discusses how the managerial terminology employed by corporate executives in this instance are representatives in a transnationalizing lexicon of managerial culture. [transnational corpo

Business innovation through joint ventures supported by major businesses: Case study on US‐Japan joint venture businesses

Abstract: In the last few years, Japan has seen rapid growth in the multipoint connection service market involved in videoconferencing systems represented by multimedia. The trend depicts the background scenario of the birth and major growth of the multipoint video communications market initiated by NTT, Japan’s largest telecommunications carrier, in alliance with joint venture business (NTT Phoenix Network Communication Inc.) comprising heterogeneous US‐Japan joint businesses. This article introduces the world’s largest multipoint connection venture business followed by a review on how to create an emerging market for new video network services in Japan through partnerships bolstered by a close strategic alliance between the original investing businesses and the venture business plus the strategic assistance of the investing businesses.

Modes of Corporate Internationalization: Japanese FDI Strategies in Asia-Pacific

Abstract: The conventional wisdom among large Japanese companies has been to import raw materials and components to produce value-added goods for the world market. In the face of global competition, this export-oriented strategy is giving way to a FDI-oriented approach. The internal evolution of Japanese companies means previously immobile production factors are now being located in the most efficient overseas production base: The closed corporate groupings (keiretsu) are giving way to strategic alliances. Economies of network are complementing economies of scale and scope. The internal evolution of Japanese companies is providing a partial answer to the business challenges they face in the 21st century.

Using the Multiview2 Framework for Internet-Based Information System Development

Abstract: Internet-based information system development is booming. There is the possibility that traditional IS analysts will be left behind, marooned with their structured (and even Object-Oriented methods) while technophiles and graphic designers join forces to hack out Internet applications at an ever increasing rate using technologies that change and grow week on week. Using the Multiview2 framework as an organizing scheme, this paper considers the role and relevancy of traditional methodologies for Internet-based IS development. The first stages of an action research project are used to illustrate how Multiview2 could contribute to the development of a strategic Internet marketing application.

The research on future images and visions: Need for a strategic alliance between futures studies and social sciences

Abstract: (1999). The research on future images and visions: Need for a strategic alliance between futures studies and social sciences. International Review of Sociology: Vol. 9, No. 3, pp. 333-347.

Developing Strategic Partnerships: How to Leverage More Business from Major Customers

Abstract: Part 1 Making strategy choices: degrees of freedom real competitive differential strategic partnerships. Part 2 Planning for a strategic alliance: gaining internal approval profiling and selecting a partner strategic partnership initiatives. Part 3 Implementing and sustaining an alliance: gaining customer commiment the technical and commercial study the SPI team approach evaluating strategic partnerships sustaining strategic partnerships.

New Strategic Alliances Between Islamic Financial Institutions, International University Students and Entrepreneurs to Implement Musharakah Financing to Meet the Challenges of the 21st Century

Abstract: The end of the cold war era has made us (individuals and institutions) think and act globally and strategically. A new dimension has been introduced, this being the fact that the role of the market has gained dominance over the role of the state. Competition, efficiency (in terms of performance and service to clients), and strategic alliances are the language of the world today. These rapid changes in the world economic scenario will force us to make changes in our behaviour and to strategise with others in order to meet the challenges of the twenty-first century to implement the musharakah method of finance. This article sets out to analyse the concept of strategic alliances and why it is important to the new proposed triangular relationship between Islamic financial institutions (IFIs), small and medium industry entrepreneurs (SMIEs) and international university students (IUS). This article intends to assess the current practices of Islamic financial institutions in order to establish whether there is a need to take a shift in their paradigm. The problems that face the SMIEs in Malaysia and the new role of the business university students are evaluated. Finally, the challenges to implement the strategic alliance are examined and a conclusion consisting of recommendations is formed.

Strategic Alliances - An Alternative Schema

Abstract: The analysis of strategic alliances has developed from a number of perspectives both theoretical and pragmatic. This has led to a diversity of definitions of what constitutes a strategic alliance. The authors consider the existing definitions and highlight inconsistencies. Furthermore the authors consider the conditions necessary for strategic alliances in the areas of Form, Nature, Purpose and Strategic Importance and propose an alternative definition of a strategic alliance.