Showing papers on "Strategic alliance published in 2014"

Relationships between quality of information sharing and supply chain food quality in the Australian beef processing industry

Abstract: Purpose – The purpose of this paper is to analyze supply chain practices, and supply chain food quality performance indicator in the Australian beef processing industry. Design/methodology/approach – A conceptual model was developed to test how supply chain practices: strategic alliance, customer focus, information sharing, information quality, Lean system and antecedent cooperative behavior: trust and commitment impact on food quality. A survey questionnaire to 600 Australian beef processors was conducted to collect the empirical data for testing of the formulated hypotheses. The stepwise multiple regression analysis was performed to test the hypothesized relationships. Findings – Strategic alliance, information quality and trust and commitment are significantly related to food quality. In particular, the standardized coefficient shows that information quality has a significant positive relationship with food quality. Research limitations/implications – As Lean principles have been widely adopted in the ...

Leadership and innovation capability development in strategic alliances

Abstract: Purpose – The purpose of this paper is to examine whether heterogeneity in alliance capability development can be attributed to the use of certain intra-firm leadership behaviors. The author suggests that transformational leadership behaviors have a stronger influence on the development of innovation (dynamic) capabilities of a strategic alliance than on the development of operational (substantive) capabilities, and that transactional leadership behaviors mainly preserve operational capabilities. Design/methodology/approach – The author used in-depth expert interviews and a questionnaire survey comprising 369 strategic business alliances to develop and test the theoretical framework. Findings – The data confirm the positive relationship between transformational leadership and the development of innovation and operational capabilities. Yet, transactional leadership behaviors are not only associated with operational capability development, but notably contribute to the development of innovation capabilities...

The Role of Management Controls in Transforming Firm Boundaries and Sustaining Hybrid Organizational Forms

Abstract: Coase (1937) first explained the existence of firms and the boundaries between them as an emergent solution to minimizing the costs of accessing markets -- what Williamson (1975) later termed ‘transaction costs.’ Over time, innovations in management control and changes to legal structures have reduced the costs of monitoring, raised the costs of behaving opportunistically, and created ways for partners to commit credibly to future actions. At the same time, entrepreneurial firms have developed inimitable resources that are a basis for collaborating with partners who have complementary resources (Penrose 1959). Together these forces have transformed the dichotomous choice of ‘make’ versus ‘buy’ into a selection among a more nuanced set of hybrid modes of organization (e.g., strategic alliances, joint ventures, and supply chain partnerships). The hybrid structures blend characteristics of arms-length market transactions with modes of governance and control that are more common to large decentralized firms. The thesis of this paper is that innovation in management control has been central to the emergence, diversity and stability of hybrid organizational forms. Extending the arguments of Coase, Williamson, and Penrose, a review of the accounting literature highlights the important role that management controls have played in transforming the question from explaining firm boundaries to explaining how transactions that appear to be fraught with transactions hazards are rendered profitable and sustainable to transaction partners. We review empirical research in management accounting to support our thesis and identify areas for further inquiry.

Built to Last or Meant to End: Intertemporal Choice in Strategic Alliance Portfolios

Abstract: A salient but rarely explicitly studied characteristic of interfirm relationships is that they can intentionally be formed for finite periods of time. What determines firms' intertemporal choices between different alliance time horizons? Shadow of the future theorists suggest that when an alliance has an explicitly set short-term time frame, there is an increased risk that partners may behave opportunistically. This does not readily explain the high incidence of time-bound alliances being formed. Reconciling insights from the shadow of the future perspective with nascent research on the flexibility of temporary organizations, and shifting the focus from the level of individual transactions to that of strategic alliance portfolios, we argue that firms may be willing to accept a higher risk of opportunism when there are offsetting gains in strategic flexibility in managing their strategic alliance portfolio. Consequently, we hypothesize that environmental factors that increase the need for strategic flexibility—namely, dynamism and complexity in the environment—are likely to increase the relative share of time-bound alliances in strategic alliance portfolios. Our analysis of longitudinal data on the intertemporal alliance choices of a large sample of small and medium-sized enterprises provides support for this argument. Our findings fill an important gap in theory about time horizons in interfirm relationships and temporary organizations and show the importance of separating planned terminations from duration-based performance measures.

Two Decades of Research on Strategic Alliances: Analysis of Citations, Co-citations and Themes Researched

Abstract: Research on strategic alliances has a long tradition in management studies. Strategic alliances have been investigated using multiple theoretical lenses from RBV to agency and transaction cost, and diverse contexts, from the semiconductor to airline industries. In this study we scrutinize the extant strategic alliance research in thirty-one top-ranked business/management journals, over a twenty-year period, from 1993 to 2012. In a sample of 866 articles we conducted citation and co-citation analyses employing social network techniques and factor analysis to identify research themes and make sense of the stock of accumulated knowledge and theoretical trends. We were able to identify some shifts in research over time, namely from a focus on performance and theoretical emphasis on transaction cost theory and governance concerns, moving to a learning and knowledge transfer approach, social networks and collaboration. This study provides the foundations over which future research may develop to fill conceptual and empirical gaps.

Lateral Coordination Mechanisms and the Moderating Role of Arrangement Characteristics in Information Systems Development Outsourcing

Abstract: Although increased information systems IS development outsourcing is the trend, many of these arrangements fail to meet client expectations. We take a coordination perspective and adopt an information processing lens used by prior organization theorists to conceptualize sets of formal structural and informal nonstructural mechanisms, and predict their positive impacts on the strategic IT benefits achieved by the client. Utilizing a strategic alliance lens, we also predict that two characteristics of the client-vendor arrangement will moderate the impacts of both sets of coordination mechanisms. We test our hypotheses using hierarchical regression techniques on field survey data collected from 141 IS managers in client firms, responsible for IS development outsourcing arrangements. We found that the implementation of both structural and informal mechanisms positively impact the client's strategic IT benefits. In arrangements with greater resource provisioning by the vendor, the positive impacts of informal governance mechanisms are strengthened. In arrangements with higher values similarity, the positive impacts of structural governance mechanisms are strengthened, but the positive impacts of informal mechanisms are weakened. A post-hoc analysis of a mediation model reveals that values similarity also has a positive relationship to both structural and informal governance mechanisms. This study therefore provides empirical support for the validity of an information processing lens to theorize lateral mechanism solutions to the coordination challenges of IS development outsourcing. Implications for research and practice are discussed, including the need for future research to better understand how client managers evolve sets of formal and informal mechanisms over the life of an outsourcing arrangement to achieve strategic objectives for their IT organization.

Knowledge Sharing within Strategic Alliance Networks and its Influence on Firm Performance: The Liner Shipping Industry

Abstract: With increasing ubiquity of globalisation and the knowledge-based economy, the significance of knowledge as a critical firm resource is widely acknowledged, whilst strategic alliances are increasingly employed as instruments for knowledge sharing. The progressive formation of prominent alliance networks has also spurred much research on the effects of alliance networks on firm performance. With scant maritime-related research on such areas and strategic alliances being rampant in liner shipping, it is important to understand the knowledge dynamics within liner shipping alliance networks and examine their impact on firm performance. An exploratory approach, via face-to-face interviews with liner shipping executives, was adopted to obtain detailed insights and understanding for all research objectives. The findings of this study revealed existing mechanisms of knowledge sharing within liner shipping alliance networks, illustrate how information sharing amongst partners enhances firm performance, and demonstrate the positive yet limited moderating effects of geographical proximity on the former relationship.

Should We Stay or Should We Go? ‘Organizational’ Relational Identity and Identification in Social Venture Strategic Alliances

Abstract: In tackling some of society's most intractable problems, social ventures often engage in strategic alliances to overcome resource constraints and scale their solutions. While considerable research has focused on why strategic alliances are created, less attention has been focused on how they form and why they may (not) persist. Building on an identity-based perspective, this paper develops a theoretical model of strategic alliance development and change by explaining how, and with what results, leaders of social ventures influence the development of organizational identities within their own organizations and strategic alliance partner organizations. The model presented in this paper contributes to the identity literature by developing a cross-level model that explains how individual identities can facilitate the development of organizational identities and by extending the individual-level construct of relational identity to the organizational level by introducing the constructs of ‘organizationa...

Effects of Strategic Alliances on Organizational Performance: Supermarkets and Their Alliances in Kenya

Abstract: This study sought to examine the effect of strategic alliances on performances The objectives of the study were: to establish the effects of technological, production and marketing strategic alliances on the performance of supermarkets and their alliances in Kenya The study employed a correlational research design The sample of the study entailed a study of all the five big supermarkets (Nakumatt, Ukwala, Naivas, Tuskys and Uchumi) and 95 of their strategic alliances Data for this study was collected from the head offices of the firms by use of a questionnaire The data was analyzed using a multiple regression model in order to test the effect of the independent variables relating to strategic alliances and the dependent variable performance Independent one-way ANOVA test and independent t-test (one tailed) were used to determine the level of significance Data was presented using figures, and tables The empirical results of the study indicated that there was a strong, negative correlation between technological strategic alliances and performance However, there was no statistical significant relationship between technological strategic alliances and performances among supermarkets and their alliances in Nairobi CBD Correlation results indicated that there was a weak, negative effect between production strategic alliances and performance, for the supermarkets while for supermarket alliances there was a large, positive effect between the two variables There was a strong, positive effect between marketing strategic alliances and performance for the supermarkets while for supermarket alliances there was a medium, positive correlation between marketing strategic alliances and performance However, 2 tailed tests indicated that there was a statistically insignificant relationship between the variables The results from the multiple regression analysis indicated that strategic alliances had a strong relationship with supermarket performance which suggests that strategic alliance contributes positively towards supermarkets performance On the other hand supermarket alliances regression analysis showed a weak relationship between strategic alliances and performance suggesting that other factors account for the performance in these alliances The ANOVA test indicated that the relationship between strategic alliances and performance was not statistically significant for the supermarket alliances but significant for the supermarkets The t- test analysis indicates that the relationship between strategic alliances and performance was statistically significant among the supermarkets and their alliances suggesting that strategic alliances positively increase performance Keywords: strategic alliances, supermarkets, supermarket alliances, performance

Technological position in alliances network

Abstract: The purpose of this research was to examine the interactions between the focal firm (FF) and its technological alliance, and to enquire into the technological alliance network in shaping the firm position from innovative dynamics environment. 2-Mode network analysis was employed to explore the question of how technological position emerged from alliance interaction. Specifically, we looked at the network structure of the sample by examining the interactions of technological alliance. Our empirical data were from the ‘Strategic Alliance Database’ established by the Ministry of Science and Technology in Taiwan. We identified technological position of firms from the 2-mode network analysis to resolve the highlighted question. Some results that we found were as follows: (1) The alliance network of IT technology approximated an ideal core/periphery structure. (2) The network structure apparently demonstrated that FF with a higher centrality has better opportunity to locate in the central position of FFs or in ...

Knowledge transfer, governance mechanisms in alliance and environmental uncertainty

Abstract: Purpose – The purpose of this paper is to identify the relationship between knowledge transfer characteristics in alliance and alliance governance mechanisms, the influence of alliance governance mechanisms on knowledge transfer consequences and investigate the role of environmental uncertainty in knowledge transfer of alliance. Design/methodology/approach – Survey data were collected mainly in high-tech industries of China, the firms in which often establish alliance for the purpose of learning and knowledge transfer often takes place in that alliance. Finally, 293 usable samples were included in subsequent analysis. Multiple regression analysis was used to examine the hypotheses. Findings – The extent of relational (/formal) governance mechanism used in alliance has a stronger positive relationship with the extent of tacit (/explicit) knowledge transfer in alliance than with the extent of explicit (/tacit) knowledge transfer in alliance between them; environmental uncertainty impairs relational governan...

The Impact of Strategic Alliance Partner Characteristics on Firms’ Innovation: Evidence from Jordan

Abstract: The aim of this study is to examine the impact of strategic alliance partner characteristics namely (partnercomplementarity, partner commitment, and partner compatibility) on firm’s innovation, which includesincremental innovation and radical innovation. The population of the study contained (13) JordanianPharmaceutical companies, and the sample unit consisted from (122) managers and head of divisions working instrategic alliances, marketing and production areas within the target companies. In order to gathering the datarequired for measuring the study variables a questionnaire was developed. The results of the study showed thatthe strategic alliance partner characteristics had a significant impact on the Jordanian pharmaceuticalcompanies’ innovation, and the impact of alliance partner characteristics (Compatibility, Capabilities, andCommitment) on incremental innovation is more than the impact on radical innovation. Also the results showedthat the complementarity of partner has the highest impact on the firm innovation, then the compatibility, thenthe commitment. Based on these findings the study recommending that the companies that seeking forinnovation through a strategic alliances must select the appropriate partner who has a complementarycapabilities that contribute non overlapping resources to the relationship, and a partner who has the uniquecompetencies; and the partner who has a compatible strategic objectives, organization culture and managementstyle; and the partner who has a strong sense of commitment for the alliance.

Technological alliance portfolio configuration and firm performance

Abstract: Firms pursuing technological alliances to gain competitive advantages have become a ubiquitous phenomenon in today’s business environment. This article examines which technological alliance portfolio configuration is better for focal firm performance using a portfolio rather than a dyadic perspective. To assess technological alliance portfolio effects on Korean pharmaceutical and biotechnology firms, we adopted three explanatory variables—number of alliances, number of partners, and spanning structural holes. The growth rate of revenue and the growth rate of profit are used as dependent variables. We identify two characteristics of technological alliance portfolios from the two-step generalized method of moments estimates. First, we find that between two firms with the same number of alliances, the firm with the larger number of partners would have a better performance. This result is unlike those in previous studies because it distinguishes between the number of alliances and number of partners based on the network theory. Second, we find that spanning structural holes affects firm performance rather like a double-edge sword—it positively affects the growth rate of profit but negatively affects the growth rate of revenue of firms. In short, spanning structural holes is simultaneously beneficial for firm profitability and unfavorable for firm growth. This result differs from those of earlier studies because it shows that a firm spanning structural holes among alliance partners produces either a positive or a negative effect, suggesting that a firm should vary its strategy depending on whether it prioritizes profitability or growth.

Collaborative Patterns and Power Imbalance in Strategic Alliance Networks

Abstract: Firms are connected with other firms through a variety of economic relationships that can be viewed as a form of social network. Resource-dependency theory (RDT) suggests that formal joint ventures among firms occur as a result of resource procurement, perceived strategic interdependence, expansion opportunities, legitimacy, and risk mitigation. A key unexplored element of RDT is the collaborative structure among firms with technical capabilities subordinate to their alliance partners and whether such structures are able to leverage sufficient market power to influence the industry sector within which they exist. Using the network characteristics of alliance partners in a technology- and capital-intensive industry sector, this work empirically examines the aggregate market power of so-called generalist firms. Collaborative patterns in the resources and mining sector and their impact on firm performance and resource quality are investigated using social network analysis. It is found that firms engaged in strategic alliances outperform firms operating independently; however, beyond a certain number of alliance partners, their performance declines. It was also found that, in aggregate, generalist nontechnical alliance partners can exercise significant market power in dense alliance networks, despite possessing almost no technical industry experience.

A concept of academia–industry collaboration to facilitate the building of technical and professional competencies in new product development

Abstract: The development of innovative and competitive products is crucial for any company’s long-term success in the global informationsociety and the global market. Educational engineering programs should facilitate the building of both technical and professionalengineering competences. Project based learning, teamwork and real-life product development in collaboration with industrialcompanies seem to be appropriate ingredients of such programs. A concept of academia–industry collaboration and its realisationswere developed and applied by a strategic alliance of European universities. Initial results of the communication-trust building-creativity triad showed some properties of one of the applied concept realisations. Although the concept and its realisations weredeemed successful, identified issues have to be addressed in the future.

The antecedents and consequences of relational capabilities in strategic alliance management : a study of Thai manufacturing sector

Abstract: This research investigates the antecedents and consequences of relational capabilities in the context of strategic alliance projects between MNE subsidiaries and local suppliers in the Thai manufacturing sector. The need to understand the relational capabilities approach is recognised in management literature, especially the ambiguous effects of the relational and economic dimensions, on relational capabilities in cross-cultural alliance projects. In particular, academics have highlighted the importance of relational capabilities, trust and transaction cost factors in that they play important roles in determining alliance success, especially in the context of cross-cultural alliances. A theoretical framework is developed which, first, explores the antecedents and barriers of relational capabilities and second, examines the multiple mediation effect of these on the link between inter-organizational conditions and alliance performance. The research design is aligned with quantitative methodology. The theoretical frameworks were tested using the data obtained from 156 strategic alliance projects between MNE subsidiaries and local suppliers in the Thai manufacturing sector with hierarchical regression analysis and the bootstrapping technique. The empirical results indicate that inter-personal trust, inter-organizational trust and asset specificity are antecedents of relational capabilities, while HR distance between alliance partners is not a barrier of these capabilities. Moreover, the empirical outcomes in relation to the indirect effect of the relational and economic dimensions on alliance performance through knowledge sharing routines and complementary capability are supported. However, the remaining hypotheses pertaining to the expectation that effective governance mechanisms are mediators on those relationships are rejected. This is explained by the fact that trust-based relationships are so deeply embedded in the Thai manufacturing sector that they predominate over such mechanisms. The contribution of this research is twofold: first, in terms of academic advancement, it combines the arguments of trust and TCE to provide a holistic view in explaining antecedents and consequences of relational capabilities. Second, in terms of practical contribution, it improves the understanding of practitioners both purchasing managers of MNE subsidiaries and sales managers, regarding the alignment of trust and asset specificity with relational capabilities to achieve better performance in cross-cultural strategic alliance projects.

Competitive Strategic Alliances Through Knowledge Value Chain

Abstract: Strategic alliances are widely considered as collaborative strategies formulated and implemented to meet shared objectives and develop superior resources cooperatively. Among these objectives and resources, Knowledge-based capabilities and learning have received more attention in literature and numerous authors have investigated different aspects of strategic alliance pertaining to these two fields. However, from strategic perspective of knowledge management, knowledge value chain (KVC) and organizational knowledge chain (KC) systematically usher an organization to manage its knowledge-resources and based on which creates value and sharpens its competitive edge. However, in strategic alliance studies these two approaches (KVC and KC) have not been addressed enough and literature sufferers from a conceptual gap. Therefore, this paper is aimed to bridge this gap theoretically and provide some valuable insights for researchers ad practitioners. Field of Research; strategic management, knowledge-based theory

Product bundling and incentives for mergers and strategic alliances

Abstract: This paper analyzes firms’ choice between a merger and a strategic alliance in bundling their product with other complementary product. We consider a framework in which firms can improve profits only from product bundling. While mixed bundling is not profitable, pure bundling is because pure bundling reduces consumers’ choices, and thus, softens competition among firms. Firms benefit the most from this reduced competit ion if they form an alliance. Firms do not gain as much from a merger because, internalizing the complementarity between the two products, a merged firm is inclined to pursue aggressive pricing to gain market share. Yet, firms may be motivated to choose a merger over an alliance because of foreclosure possibility as foreclosure is not possible under strategic alliance. However, in response, unmerged rivals can use a strategic alliance to avert foreclosure. Hence, the possibility of counter-bundling via strategic alliance by rivals reduces the incentives for merger. In equilibrium,

A conceptual framework for R&D strategic alliance assessment for Taiwan’s biotechnology industry

Abstract: With the rapid development of technology, technology advancement is harder and harder with more and more risks in technology innovation, thus enterprises can’t carry out technology innovation program alone. The development of the emergence of the biotechnology industries provides valuable insights into the role of strategic alliances and networking that shaped the synergy between both industries. This paper provides a step by step methodology to evaluate R&D strategic alliances problem in Taiwan biotechnology Industry. The purpose of this paper is to formalize the choice of R&D strategic alliance modes for an individual multinational enterprise among Joint Venture, Franchise agreement, Licensing Agreement, Subcontract and Merger/acquisition. An illustrative example is presented to demonstrate the applicability of the proposed methodology. The proposed approach also provides a relatively simple and well suited decision making tool for this type of strategic decision making problem. This evaluation mode was identified as a workable method.

Commitment and trust in achieving financial goals of strategic alliance: Case in Islamic microfinance

Abstract: Purpose – This paper aims to illustrate theoretically and empirically the decision and result of strategic alliance between baitul maal wa tamwil (BMT) and Islamic banks as a relationship based on trust, mutual-trustworthiness and commitment. This paper also identifies the basic criteria for the resilience of a strategic alliance, the challenges and the barriers in a strategic relationship along with managerial and operational implications. Design/methodology/approach – In this study, we have chosen to use the confirmatory approach through a structured questionnaire by means of field survey to 131 BMT spread throughout Central Java and Yogyakarta. From the total sample, 89 BMT fulfilled the sampling criteria, that is: has operated for a minimum of two years and does not experience any financial difficulties during those two years; has done a financing contract with an Islamic bank; channels some of its funds to micro, small and medium enterprises; and is in the form of a cooperative, and not a micro finan...

Government–Business Partnership Formation for Environmental Improvements

Abstract: This article extends resource dependence theory to systematically explain what types of firms are likely to partner with governments through government–business partnerships (GBPs) to address environmental challenges. Using data from 377 environmental alliances formed between 1985 and 2013, this article empirically assesses firms’ likelihood of choosing GBPs for environmental improvements rather than selection of other cross-sector and interfirm partnership(s). The results suggest that GBPs are likely to form when firms are in vulnerable strategic positions, for example, where their survival substantively relies on receiving government support. GBPs are also likely to form when firms have strong resource or social positions that allow them to leverage governmental power in the development of strategic opportunities related to environmental improvements.

Open Innovation: Learning from Alliance Research

Abstract: This volume examines an important area of potential research: the intersection of strategic alliances and open innovation. Although these two streams of research have developed separately, with distinct assumptions and research questions, there is a natural affinity between them in terms of phenomena, theoretical predictions, and managerial implications. As editor Refik Culpan notes in chapter 2, both streams assume that innovation is collaborative (and often complementary) and that such collaborations are crucial for firms to create and capture value from their innovations.

Business Incubation in the Eastern Cape: A Case Study

Abstract: Business incubation is a concept that describes a business development process that is used to grow successful, sustainable entrepreneurial ventures that will contribute to the health and wealth of local, regional and national economies. Incubators provide a platform for businesses to build their foundations. Incubators are part of a larger value chain that connects businesses to a vital support system, such as local service providers (including lawyers, corporate service providers or accountants) to establish relationships that will last after the business leaves the incubator. This paper investigates whether the performance of the Seda Nelson Mandela Bay ICT Incubator is in line with generally accepted performance standards. These standards are identified as a strategic alliance of the business (vision, mission and strategy), financing principles, management principles and human resource development and growth opportunities. Alignment to these standards was investigated through surveys with members of the board, employees and incubatees. The findings show that the incubator in the case study was aligned to generally accepted performance standards but that there is room for improvement in market alignment, incubate compliance and periods of incubation.