Session 44

Network Contingencies and Alliance Performance

Track N

Date: Monday, October 8, 2012

 

Time: 08:00 – 09:15

Paper

Room: Meeting Hall IV (b)


Session Chair:

  • Zhiang Lin, University of Texas at Dallas

Title: Advantage-Creating Frequency and Firm Profiability: The Moderating Role of Alliance Network Density

Authors

  • Goce Andrevski, Queen's University

Abstract: This research explores how firms can earn superior profits in hypercompetitive environments. I argue that firms that frequently launch advantage-creating actions can gain above-average profits despite acceleration-cost tradeoffs. The results indicate that both disruptive and incremental advantage-creating frequency positively affect firm profitability, but the effect is curvilinear; as advantage-creating frequency increases, the profitability increases at a decelerated rate. Firms can weaken the acceleration-cost tradeoffs and enhance profitability through designing an appropriate alliance network structure. For firms pursuing moderate levels of ACF, dense alliance networks maximize profitability. For firms pursuing ACF at very low or very high levels, sparse networks are more advantageous. Hypotheses are tested on a sample of 113 firms from the personal computer and consumer electronics industry operating from 1995 to 1999.

Title: Partner Selection and Technology Adoption during Technological Transition

Authors

  • Franky Supriyadi, Prasetiya Mulya Business School

Abstract: The transition of technology to the advanced generation creates new industry’s value networks and competition between rival technologies. Given the complexity and the uncertainty during this period, firms that seek to promote a certain technology platform may be motivated to engage in strategic alliances. This study explores how firms establish alliances to improve the chance of winning the technology battle. Specifically we examine how firms select their partners, and then given those partner characteristics predict the likelihood of specific technology adoption. We argue that firms promoting a standard tend to select familiar partners, highly competent complementary technology providers, and the ones with wider connections. The comprehensiveness of their alliances portfolio and their position in the networks increases the likelihood of the technology adoption.

Title: Rent Appropriation under Social Constraints: Do High-status Firms Always Benefit from Alliance Relations?

Authors

  • Zhiang Lin, University of Texas at Dallas

Abstract: Despite the common perception that a high-status firm should reap more rents from alliance relations, we question whether there are alternative forms of rent appropriation and whether such alliance-level rent appropriation will always lead to firm-level performance, particularly when a firm has multiple alliances of different purposes and is embedded within a broad social context. Our initial results from an agent-based model show that positive rent appropriation (based on high status) is not a sufficient condition for improved firm performance, and that neutral rent appropriation (based on equality) may be more beneficial when firms have large resource capacities, face high industry growth, or are in later network stages. Our findings suggest a need to rethink rent appropriation in alliance relations, with alternative theoretical directions.

Title: The Performance Impact of Alliance Portfolio Network Resource Intensity and Scope

Authors

  • Ulrich Wassmer, EMLYON Business School
  • Sali Li, University of South Carolina

Abstract: How do alliance portfolio network resource intensity and scope affect firm performance? This paper intends to shed further light on how the configuration of alliance portfolios affect the benefit and cost side of the alliance value equation. More specifically, we link alliance portfolio related benefits and cost factors to firm performance and develop hypotheses that are tested by using data from the global airline industry over the time period 1994 to 2008. Our results support the hypotheses that alliance portfolio network resource intensity and scope matter in explaining firm performance differentials.

All Sessions in Track N...

Sun: 08:00 – 09:15
Session 100: Interdisciplinary Perspectives on Cooperative Strategies
Sun: 09:30 – 10:45
Session 101: Practicing Cooperative Strategies
Sun: 11:15 – 12:30
Session 102: Research Methods in Cooperative Strategies
Sun: 15:15 – 16:30
Session 46: Value Creation and Capture in Alliances
Mon: 08:00 – 09:15
Session 44: Network Contingencies and Alliance Performance
Mon: 09:30 – 10:45
Session 50: Trust and Relational Governance
Mon: 13:30 – 14:45
Session 45: New Perspectives on Alliance Termination
Mon: 16:30 – 17:45
Session 51: Resource- and Knowledge-Based Views of Cooperative Strategies
Tue: 08:00 – 09:15
Session 248: Cooperation and Industry Contingencies
Tue: 11:00 – 12:15
Session 247: Cooperative Strategies
Tue: 14:15 – 15:30
Session 48: Managing Alliance Dynamics
Tue: 15:45 – 17:00
Session 49: Organizational Learning and Alliances
Tue: 17:30 – 18:45
Session 47: Governing and Managing High-Tech Collaborations


Strategic Management Society

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