Session 176

Different Perspectives Informing Governance Choices: Partner Choice in Alliances vs. Acquisitions

Track N

Date: Monday, October 5, 2015

Track F

Time: 08:00 – 09:15

Paper

Room: Governor's Square 16


Session Chair:

  • Denisa Mindruta, HEC-Paris

Title: A Matching Model of Partner Choice in Venture Capital Syndicates

Authors

  • Denisa Mindruta, HEC-Paris
  • Oliver Gottschalg, HEC-Paris
  • Gordon Walker, Southern Methodist University

Abstract: In this paper we extend the research on partner choice by testing a matching model for syndication formation. Our analysis focuses on two key variables hitherto unexamined: partner prior financial performance and a network measure of partnering concentration. We estimate a variable’s contribution to partnership formation either as a complement (homophily) or substitute (heterophily). We find that financial performance is a complement, indicating that better performing firms choose each other, and that partnering concentration is also a complement, indicating that firms that are specialized (alternatively generalized) remain so in their new alliances. The data are U.S. venture capital syndications in the first round. We discuss the implications of the results for network development.

Title: Captive and Relational Synergies in Acquisitions

Authors

  • Panos Desyllas, University of Bath
  • Martin C. Goossen, Tilburg University
  • Corey Phelps, McGill University

Abstract: Whereas prior literature extensively examined the role of tangible and intangible assets during mergers and acquisitions, little attention has been paid to relational assets, i.e. resources beyond organizational boundaries. However, in settings where interorganizational relationships are essential, there are extensive potential benefits stemming from synergies in strategic alliances of acquiring and acquired firms. We thus argue that acquisition performance increases when an acquired firm has relatively more relational resources. However, this effect is weaker when the acquired firm’s relationships overlap with the acquiring firm’s main business. Conversely, this effect will be stronger if the acquired firm’s relationships are well-established and when the acquired firm is central in the alliance network. The hypotheses are tested on a sample of acquisitions in the biopharma industry.

Title: Choice between Alliance and Acquisition: Effect of Internal Technological Capabilities and Patent Strategy

Authors

  • Christian Gnekpe, Louvain School of Management
  • Régis Coeurderoy, Catholic University-Louvain

Abstract: The paper contributes to the literature on governance mode by studying the impact of internal technological capabilities - research and development (R&D), proximity with science, and both the novelty and quality of patents - on the choice between alliance and acquisition as modes of external technology sourcing. Based on the analysis of a comprehensive panel of 661 transactions made between 2000 and 2010 by 199 European firms operating in the high-tech software industry, we found that high R&D expenditures predict acquisition in case of high proximity with science, and predict alliance in case of high patent quality. Moreover, low R&D expenditures predict acquisition in case of low patent novelty. Implications for theory and practices are discussed.

Title: The Purpose of an M&A Contract: Setting Terms for Exchange Versus Acquisition

Authors

  • Zhe Xing, University of Southern California
  • Kyle J. Mayer, University of Southern California

Abstract: While inter-firm contracts (e.g., alliances) have garnered a great deal of attention, M&A contracts remain comparatively under explored. The purpose of a contract is for two parties to come to agreement on a deal, but the role of the contract after it is signed differs between alliances and M&A. An alliance contract sets the terms under which the parties will govern their exchange. An M&A contract, however, represents a shift to hierarchical governance and thus is more focused on the terms and conditions under which the transition to hierarchy will occur. In this paper, we explore these differences and discuss factors that influence M&A contract design.

All Sessions in Track N...

Sun: 08:00 – 09:15
Session 197: A Session in Honor of Ulrich Wassmer
Sun: 09:45 – 11:00
Session 27: Public-Private Partnerships: Capabilities and Organizational Design
Sun: 11:15 – 12:30
Session 196: Perspectives and Dynamics of Committed Relationships
Sun: 16:15 – 17:30
Session 171: How to Govern Alliances: Boards, Multi-market Competition, and Social Capital
Sun: 17:45 – 00:00
Session 323: Cooperative Strategies Business Meeting
Mon: 08:00 – 09:15
Session 88: Firm Boundaries: Theories of New Sources of Competitive Advantage
Session 176: Different Perspectives Informing Governance Choices: Partner Choice in Alliances vs. Acquisitions
Mon: 11:15 – 12:30
Session 186: Outsourcing, Offshoring, and the Changing Nature of Firm Boundaries
Mon: 13:45 – 15:00
Session 177: The Dynamics of Coopetition
Mon: 16:45 – 18:00
Session 173: Learning and Routines: Implications for Alliances, Organizational Design, and Capabilities
Tue: 08:00 – 09:15
Session 178: A Conversation of Different Paths Underlying Innovation
Session 179: Alliance Formation and Its Effects including the Influence of Political Connections & Venture Capital
Tue: 11:00 – 12:15
Session 184: Multiple Lenses on the Determinants and Effectivenss of Contracts
Tue: 14:15 – 15:30
Session 185: Partner Selection, Committment, and Switching
Session 275: External Interface Processes and their Consequences
Tue: 15:45 – 17:00
Session 183: Alliance Termination and Survival
Tue: 17:30 – 18:45
Session 180: Relational Dynamics in Alliances: Signals, Repairs, and Horizontal Partners
Session 182: Alliances: From Understanding Drivers of Performance to Value-Creation

All Sessions in Track F...

Sun: 08:00 – 09:15
Session 193: Phenomenon-driven Research in Strategic Management
Sun: 09:45 – 11:00
Session 221: Reflecting on the scope of the firm: New avenues for future research
Sun: 11:15 – 12:30
Session 194: The State and Future of Disciplinary Research in Strategic Management
Sun: 16:15 – 17:30
Session 113: Serial Acquisitions: Strategies and Processes
Sun: 17:45 – 00:00
Session 314: Corporate Strategy Business Meeting
Mon: 08:00 – 09:15
Session 111: Portfolio Management: Diversification and Divestitures
Session 176: Different Perspectives Informing Governance Choices: Partner Choice in Alliances vs. Acquisitions
Mon: 11:15 – 12:30
Session 195: Where Are the Boundaries of Strategic Management Research?
Session 210: M&A/JV Implementation
Mon: 16:45 – 18:00
Session 112: Acquisitions - Before the Deal
Session 243: Competitive Dynamics and Market Positioning
Tue: 08:00 – 09:15
Session 115: Horizontal and Vertical Scope: Interactions and Embeddedness
Session 272: Competitive Dimensions of Firm Boundary and Location Decisions
Tue: 11:00 – 12:15
Session 117: Issues and Answers for the Diversified Firm
Session 145: Strategic Leadership and Corporate Strategy
Tue: 14:15 – 15:30
Session 58: Corporate VCs and spin-outs
Session 116: Acquisitions - After the Deal
Session 267: Healthcare Industry Dynamics, Relationships, and Activities
Tue: 15:45 – 17:00
Session 110: Models of Corporate Strategies
Tue: 17:30 – 18:45
Session 114: The Interplay Between Financial Markets & Advisors and the Acquiring Firm
Session 271: Spinouts


Strategic Management Society

Denver