Showing papers on "Strategic alliance published in 2013"

A Review of Antecedents of International Strategic Alliance Performance: Synthesized Evidence and New Directions for Core Constructs

Abstract: This paper provides a systematic review of 165 empirical studies on the antecedents of performance in international strategic alliances. It provides the most detailed display of definitions, rationales, measures and findings currently available. Hence, this state-of-the art literature review creates an accessible pool of knowledge that is highly relevant for future research on international strategic alliances. Further, it draws on this knowledge pool to build a model which highlights the quite different rationales advanced by researchers to explain associations between the antecedents and performance. The model makes the different rationales explicit and will aid researchers in identifying tests that can be performed to examine the links between antecedents and performance as well as the mechanisms through which such associations operate. Finally, the synthesized evidence is used to suggest that researchers should give increased attention to achieving congruence between measures of antecedents and performance.

The Effect of Information Technology--Enabled Flexibility on Formation and Market Value of Alliances

Abstract: This study investigates the effect of information technology IT architecture flexibility on strategic alliance formation and firm value. We first examine the effect of three dimensions of IT architecture flexibility open communication standards, cross-functional transparency, and modularity on formation of three types of alliances arm's-length, collaborative, and joint-venture alliances, respectively. Then, we examine how capabilities in IT flexibility can enhance the value derived from alliances. Our sample includes data from 169 firms that are publicly listed in the United States and that span multiple industries. We find that adoption of open communication standards is associated with the formation of arm's-length alliances, and modularity of IT architecture is associated with the formation of joint ventures. We also find that IT architecture flexibility enhances the value of arm's-length, collaborative, and joint-venture alliances. The contribution of IT flexibility to value is greater in the case of collaborative alliances than in arm's-length alliances. Taken together, these findings suggest that appropriate investments in IT can help to facilitate reconfiguration of resources and modification of processes in collaboration-intensive alliances. This paper was accepted by Ramayya Krishnan, information systems.

The management of industry–university joint research projects: how do partners coordinate and control R&D activities?

Abstract: Benefits derived from industry–university joint research projects (e.g., competitive advantages for firms, opportunities for field experimentation, the funding of academics’ activities and knowledge and technology transfer among partners) are strongly affected by the management system exploited to combine partners’ resources and tasks. Nevertheless, scholars have not paid great attention to management practices of collaborative research, leaving the best practices undefined. Aiming to fill this literature gap, this paper is a first attempt to open the black box of the management of the implementation stage of research and development (R&D) cooperation. The investigation, based on case studies, focuses on how participants of R&D cooperation coordinate and control their activities and what drives the selection of integrating mechanisms. The comparison of coordination and control systems implemented in six industry–university joint research projects highlights that planning and mutual adjustment practices are combined in different ways to manage R&D cooperation. Project and relationship characteristics affect the configuration of the management system. Task uncertainty leads to the decentralization of coordination and control practices, equivocality provides incentives for group coordination mode and reduces the need of informal ongoing monitoring and reciprocal interdependence among partners requires the exploitation of up-to-date project plans.

National Animosity and Cross-Border Alliances

Abstract: We extend the cross-border strategic alliance knowledge base by introducing dyad-specific antagonism (animosity between nation pairs) and hold that the formation and the type of firm-level cross-border alliances are nontrivially impacted by conflicting relations and animosity between their home nations. We examine the formation of alliances between firms among nation-dyads with and without a history of conflicts. The frequency and magnitude of conflicts increase the perception of likelihood of opportunism, and dyad-specific risks materially affect the context in which firms make alliance decisions. As animosity between two nations increases, the number and the probability of forming alliances within the dyad the nations form decreases. Conditional on the expected number of alliances, increased antagonistic actions of nations outside the dyad and dissimilarity in the historical conflicts that each nation has engaged in outside the dyad (i) increase the number of equity alliances and (ii) decrease the number of nonequity alliances as a proportion of total alliances. We find positive main effects of learning to contract through prior experience only for equity (vs. nonequity) alliances. The reputation effects of antagonism based on relationships with nations outside of the dyad negatively moderate the positive learning effects of prior equity alliance experience. [ABSTRACT FROM AUTHOR]

How Prior Corporate Venture Capital Investments Shape Technological Alliances: A Real Options Approach:

Abstract: This article investigates how prior corporate venture capital (CVC) relationships between two firms affect the likelihood of their subsequently entering a strategic alliance. Creating a portfolio of CVC investments provides the investing firm with a set of opportunities that can be pursued once the technological and market uncertainty have been reduced. If the technology appears to be promising, a follow-on investment, such as a strategic alliance, is made to ensure the transfer of the technological knowledge. This article shows that prior CVC investments can play a role in the formation of strategic alliances and investigates the conditions under which they are most likely to do so.

Greener Pastures: Outside Options and Strategic Alliance Withdrawal

Abstract: Departing from prior work that demonstrates the stickiness and stability of alliance networks resulting from embeddedness, we extend matching theory to study firms' withdrawal from alliances. Viewing alliance withdrawal as a result of firms' pursuit of more promising alternative partners outside options rather than failures in collaboration, we predict that a firm is more likely to withdraw from an alliance when there is a higher density of outside options that have better match quality than the current partners. We also propose that, because matching is two-sided, outside options have a greater impact on a firm's withdrawal when they are more likely to initiate new alliances. Using data on alliances in the global liner shipping industry, we show that, controlling for internal tensions in the alliance, outside options predict alliance withdrawals. Thus, despite the alliance stickiness and stability, firms alter their alliances in response to the availability of promising outside options, even leaving alliances that appear successful.

Strategic Alliances for Environmental Improvements

Abstract: This article articulates a conceptual framework characterizing strategic alliances for environmental improvements. Drawing on the integrative perspective of the resource-based view of the firm and institutional theory, this study examines firms’ varied motivation to form strategic alliances for environmental issues and suggests that these alliances are typically either competency- or legitimacy-oriented. The author characterizes the structural configurations of these alliance types from alliance learning, partner diversity, and governance structure dimensions. These variances in structural configurations explain why competency-oriented alliances, characterized by exploration learning, diverse partners, and nonequity structure, may facilitate firms to pursue more proactive environmental strategies. This conceptual framework is supported empirically by a sample of 74 firms that participated in 146 environmental alliances in the United States from 1991 to 2007.

Alliance competence: The moderating role of valence of alliance experience

Abstract: Purpose – The purpose of this paper is to investigate alliance formation competence and attitudes toward brand alliances as antecedents of the firm's propensity to brand ally. It aims to test the hypothesis that the relationship between alliance experience and alliance competence is moderated by the relative quality of the experience, which the authors call valence of alliance experience. Design/methodology/approach – Research hypotheses were empirically tested with a national sample of senior marketing executives and brand managers. Findings – The firm's propensity to engage in brand alliances is a function of well‐developed strategic alliance capabilities and positive managerial attitudes toward brand alliances. Importantly, when the firm's prior experience in alliances is relatively more positive the relationship between alliance experience and alliance competence is strengthened. Originality/value – Not all alliance experience is the same. This study, one of the first studies to examine the relative quality of alliance experience, confirms that the relationship between alliance experience and alliance competence is significantly stronger when that experience has been relatively more positive. This study also contributes to the strategic alliance literature by providing empirical evidence for the importance of managers' attitudes toward brand alliances in driving the firm's propensity to brand ally. By choosing brand alliances as the context for the study the paper contributes to the brand alliance literature by investigating the brand alliance phenomenon from the firm's perspective.

Information asymmetry and international strategic alliances

Abstract: This paper examines how information asymmetry affects cross-border strategic alliance formation by US firms over the period 2000–2008. We construct a measure, information costs, based on both geographical distance and the proportion of worldwide GDP the partner’s home country represents. Consistent with our expectations, we find an inverse association between information costs and cross-border strategic alliances. When considering the proportion of alliances formed with publicly quoted overseas partners, we find this is unaffected by the level of information costs but rather the level of stock market development, tax rate and general economic conditions. Information costs are, however, significantly negatively related to alliances with overseas private organizations. Our results offer clear support for the on-going importance of information asymmetry in corporate decision making.

The effects of strategic hospital alliances on hospital efficiency

Abstract: This study examines the effects of strategic alliances on the efficiency of hospitals controlled by the Department of Health in Taiwan. Overall, it is found that the efficiency of the hospitals improved after they formed strategic hospital alliances (SHAs). The results also indicate that smaller hospitals located in competitive areas are more efficient, as exemplified by shorter patient stays, higher occupancy rates, and lower mortality rates. Based on Taiwan's experience, it is inferred that SHAs do improve the performance of the participating hospitals. It is hoped that the results of this study will encourage health policy officials and healthcare organizations in other countries to consider implementing similar strategies for their hospitals.

China-Saudi Arabia Relations, 1990-2012: Marriage of Convenience or Strategic Alliance?

Abstract: This book focuses on the relationship established between China, the world’s second largest economy, and Saudi Arabia, the world’s top oil exporter. Due to Saudi Arabia’s dominance of the world oil market, China is increasingly focusing its attention on the Saudi Arabia as a reliable oil supplier while Saudi Arabia sees China as an enormous potential market and strategic trade partner. It investigates both countries’ motives for establishing a strategic relationship and outlines the potential for successful co-operation between them. It then goes on to address the wider implications for the United States in the Middle East.

Modelling critical elements of selection for strategic alliance partner for network managed services using interpretive structural modelling (ISM)

Abstract: Purpose – The aim of this paper is to investigate and model the issue of selection of strategic alliance partner for managing and implementation of an operations and maintenance centre for a large telecom service provider under a managed services contract. The alliance shall enhance capabilities of the telecom value chain. Design/methodology/approach – Experts of the domain participated in a brainstorming session to list out the key elements, followed by series of individual interviews. Key insights were finally obtained by developing an interpretive structural modelling (ISM) model for the set of elements so obtained. Findings – This paper illustrates the development of an ISM model for the evaluation of a strategic alliance partner in telecom operator space. Further, key elements of the model are classified into four categories, namely autonomous, driver, dependent, and linkage. This classification helps to understand their relative impact on the selection process. Practical implications – Telecom servi...

Supermarket power, own-labels, and manufacturer counterstrategies: international relations of cooperation and competition in the fruit canning industry

Abstract: Growing supermarket dominance and the expansion of own-label market share in Australia has put considerable pressure on agri-food manufacturers, and the recent movement of a number of manufacturing operations off-shore has attracted widespread attention. This paper examines the pursuit of an international manufacturing base by SPC Ardmona, one of Australia’s major fruit and vegetable processors, with a focus on strategic alliances formed with Siam Foods in Thailand and Rhodes Food Group in South Africa/Swaziland. Strategic horizontal alliances have become increasingly important for manufacturers seeking to counter retailer dominance, yet have received little attention in the agri-food literature. The two alliances examined in this paper illustrate the profound importance of prevailing societal and institutional environments in which production networks ‘touch-down’, and their influence on firm-level dynamics of trust, motivation, corporate values, and strategic objectives. Horizontal alliances can offer a promising alternative to cut-throat competition and a ‘race- to-the-bottom’ between agri-food manufacturers. However, with own-label sourcing strategies deepening competition between geographically-disparate manufacturers, identifying compatible alliance partners is likely to become an increasingly greater challenge.

Strategic alliances with suppliers and customers in a manufacturing supply chain: From a manufacturer's perspective

Abstract: Purpose – The main purposes of the study are to: test the strategic alliance framework developed by Sambasivan et al. on the strategic alliances with suppliers and customers, separately; and compare the factors influencing strategic alliances with suppliers and customers based on the results. The present study analyzes the effect of strategic alliance motives, environment, asset specificity, perception of opportunistic behavior, interdependence between supply chain partners, and relational capital on strategic alliance outcomes. Design/methodology/approach – A sample of 228 companies representing different industries in manufacturing in Malaysia participated in the study. The sampling frame used was Federation of Malaysian Manufacturers directory. A questionnaire was distributed to all the companies. The authors tested the structural model for 185 suppliers and 75 customers using structural equation modelling. Findings – Based on the results, the key differences in the strategic alliances with suppliers a...

Assessment of Business Development Strategies in the Nigerian Construction Industry

Abstract: Business continuity is bravery for the survival of any business. This paper examines the business development strategies in the Nigerian construction with a view to enhance the sustainability of firms of professionals and contracting organizations in the industry. Set of a well structured questionnaire was distributed to professionals in both the consulting and contracting organizations in Abuja, the Nigeria federal capital territory. Data collected were analysed using mean score to rank the responses of the professionals on the usage and level of effectiveness of business strategies and One-Way Analysis of Variance (ANOVA) was employed to test the level of significance of strategies identified by this study. The study established that the widely used strategies by the professionals for business development in Nigeria included market penetration and organization/internal development. Moreover, the most effective strategies was organization/internal development followed by products/services branding and packaging, financial partnership, market penetration and merger and acquisition. The most significant strategies was market penetration followed by products/services branding and packaging, people/staff/personnel development, financial partnership, diversification and strategies alliance which were equally ranked high. The study concluded that market penetration, firm’s internal development, financial partnership, diversification and strategic alliance are significant and essential strategies for firms of professionals and organizations to survive in the Nigeria competitive construction markets.

Delivering European Healthcare Infrastructure Through Public-Private Partnerships: The Theory and Practice of Contracting and Bundling

Abstract: This chapter reviews the European experience in delivering healthcare infrastructure and services through public-private partnerships (PPPs), a strategic alliance between public and private partners over extended time periods. We investigate the concepts of contracting and bundling public sector infrastructure and services and draw lessons learnt across European Union (EU) member states. If contracts could be “complete”, with all contingencies predictable, it would be easy to write a contract which maximized the benefits from the abilities of the respective public and private parties. In the real world, however, this condition is lacking. We explore payment to a private party for service provision, and sharing of risk with that private party, as conceptual features characterizing a public-private partnership. Both these features relate to the idea of “bundling” together capital asset development and output of various services. Bundling creates a particular profile of property rights, across time or services, and the effect is theoretically to internalize externalities. We explore whether more extensive bundling seems to be associated with improved outcomes – whether for example extensions beyond hospital accommodation to hospital medical services or additionally primary care services bring benefits. The policy recommendation to be drawn is that limited PPP models are inadequate to handle the dynamic quality and demand nature of health services, but there is no definitive answer as to whether extensive bundling models are optimal. Nevertheless, there is now a growing case for much greater roll-out of more encompassing models incorporating clinical services and franchises.

Information Systems for Competitive Advantages

Abstract: This chapter will review competitive forces and competitive information systems strategies for gaining competitive advantages, explain concepts of value chain, value web and business ecosystems & co-opetition, and discuss innovation strategy.

Ties that tear apart: The social embeddedness of strategic alliance termination

Abstract: Strategic alliances between firms are inherently unstable, and many alliances fail before the planned termination date. Most studies of the instability of strategic alliances focus on internal factors, such as tensions between alliance partners. In the present study social networks, in particular the centrality of firms in an alliance network, are considered as factors explaining alliance instability. The study examines 1061 ICT-alliances that were formed in the period 1975–1989. As expected, it was found that differences in centrality increase alliance instability. Contrary to the expectation, the sum of centralities of firms in an alliance does not affect alliance instability.

Analysis of Key Factors for Formation of Strategic Alliances in Liner Shipping Company: Service Quality Perspective on Asia/Europe Route after Global Economic Crisis

Abstract: Strategic alliances generally mean the cooperation or collaboration between firms which pursue for a synergy that each member hopes the benefits from the alliances would be much more than those from individual efforts. Past researches provide us sufficient theories and considerations for alliance forming in liner shipping market. This research reviews important academic journals for the past decade regarding to the most important reasons to form the alliances. We would explain the motive of alliances and details of shipping cooperation in literature review. The paper also empirically investigates the key service quality requirements improved through alliances by using quality function deployment (QFD). Moreover, the research investigates famous shipping reports, shipping consultant websites and most recent shipping publications to find out the executive’s viewpoint of several leading carriers among top 20 to assess current shipping strategic alliance on Asia/Europe route. These comments provide meaningful managerial reasons to consider alliance formations and search if there is any gap between the theories and industrial practice. Analysis of the empirical investigation and top management’s perspective on current market situation will contribute us some meaningful managerial suggestions to evaluate these theories applied to current strategic alliances. Keywords—Liner shipping, Strategic alliances, quality function deployment, service quality.

Brazil & China : Partners or Competitors? Designing Strategic Alliances in the Age of Uncertainty

Abstract: Brazil and China are rapidly developing a strategic alliance based on the two economies’ short and long-term strategic goals. This paper assesses the impact of China on the Brazilian economy and discusses the challenges and opportunities permeating this strategic relationship. This case study suggests that Chinese and Brazilian relations represent a paradigm shift in our conventional understandings of political and economic behavior. More specifically, it suggests that the growing interdependence between big emerging economies no longer requires for large Western economies to mediate the economic exchanges that shape the global agenda. Furthermore, we suggest that in spite of very strongly perceived competitive behavior, the increased interaction between these two nations and the institutionalization of economic ventures is compelling these nations to imagine themselves increasingly as partners in a newly conceived, socially distinct, transnational dimension. To explore the significance of this behavior, we employ perspectives on international trade and globalization, including a brief CAGE analysis, to characterize Sino-Brazilian relations in the context of the 21st century global political economy.

Strategic Alliance in India under Globalized Economic Scenario

Abstract: In a developing country likeIndia, strategic alliances execute superior than other organizational forms. Strategic alliances have altered the fundamental competitive paradigm in many domestic and international markets from traditional firm-to-firm competition to more alliance-based, network-vs.-network competition. This article tries to investigate why individual company should resort to strategic alliances, what are the factors affecting effectiveness of strategic alliances and identified a few cases of strategic alliance inIndia. Strategic alliances are an increasingly significant core element in many firms’ strategies to generate and sustain their competitive advantages in dynamic market environments. . By developing strategic alliances, firms contribute to their excess capabilities and resources with others and create a new entity to attain competitive advantages. When alliances are efficiently managed, the participating firms can attain numerous benefits that eventually bring profitability.

Financial Services in the Transatlantic Trade and Investment Partnership

Abstract: The Transatlantic Trade and Investment Partnership (TTIP) can deepen the already substantial ties that bind the United States and the European Union in the world's largest economic and strategic alliance. Since both sides have included financial services in prior trade pacts, they implicitly recognized that the TTIP would also cover this sector. But what will be included in the financial services chapter is still subject to debate. Particular concerns arise about how the TTIP could impact the still unsettled European financial reforms and the introduction of new US rules pursuant to the Dodd-Frank legislation of 2010 or other potential US regulatory initiatives. The authors believe that the TTIP can complement the extensive efforts already in train in financial forums by making regulatory policies more transparent and by creating opportunities for trade and investment in financial services in both markets. A broader role for TTIP in harmonizing financial regulation is not an appealing idea—and not one that sits well with current US official thinking.