Session 179

Alliance Formation and Its Effects including the Influence of Political Connections & Venture Capital

Track N

Date: Tuesday, October 6, 2015

 

Time: 08:00 – 09:15

Paper

Room: Director's Row H


Session Chair:

  • Kyle J. Mayer, University of Southern California

Title: Building Blocks with Old Friends: Social and Technological Influences on Exploration via Firm-University Collaboration

Authors

  • Francisco Polidoro, University of Texas at Austin
  • Pedro Mesquita, FGV-EBAPE

Abstract: Existing literature highlights the benefits of firm-university collaboration. Research on collaboration has examined the influences of social and technological proximity on the patterns of collaborative alliances that organizations create. However, the same factors that are conducive to the formation of collaborative projects may hinder partners’ efforts to explore new technologies. Firm-university collaborative R&D is relevant to examine this question because such collaboration is particularly well suited to exploration. We examine this tension by using a unique dataset containing fine-grained data about 3,724 R&D projects between a firm and 165 universities and research organizations. This study reveals an important tradeoff – the very drivers that facilitate the creation of firm-university linkages may undermine the extent to which these linkages result in exploration.

Title: Do Ongoing Networks Block out New Friends? Reconciling The Dilemma between Resource Dependence and Network Embeddedness

Authors

  • Han Jiang, University of Arizona

Abstract: This study addresses a theoretical dilemma wherein resource dependence and network embeddedness theories provide conflicting predictions about how alliance network constraint (reflected by network cohesion) affects a firm’s alliance formation with new partners. By separating firm-level alliance networks into two distinct functional domains (i.e., exploratory and exploitative), we expect that the cohesion of exploratory and exploitative alliance networks has an inverted U-shaped effect on the addition of new alliance partners in the same functional domain, and a positive effect on the addition of new alliance partners in the other function domain. We use data from the biotechnology industry to test our predictions and achieve mixed results. Our study contributes to both scholarly understanding and alliance practice.

Title: Political Connectedness and the NDA Approval Process

Authors

  • Izzet Sidki Darendeli, California State University, East Bay
  • Richard Brown, Penn State University

Abstract: In this paper, we integrate the literature on political connectedness and innovation in the process of new drug applications (NDA) in the pharmaceutical industry. We propose that firms that have more political connections to former high-level staff at the U.S. Food and Drug Administration (FDA) have greater success (both in approvals and in time to approval) than those that lack such connections, after controlling for factors that may also lead to such success. We incorporate data from the NBER Patent Database, the Center for Responsive Politics and Compustat to test these relationships.

Title: The Impact of Venture Capital on Alliances of Start-ups

Authors

  • Albert Jolink, Coventry University
  • Eva Niesten, University of Manchester

Abstract: Start-up firms are constrained in their resources and experience but may benefit from complementary resources in strategic alliances. Venture capitalists’ experience with a variety of start-ups can help to form these strategic partnerships. This study examines the impact of venture capital on the alliance formation of start-ups. Lindsey (2008) has shown that sharing a venture capitalist increases the probability that two firms form an alliance. Using a database of 40,000 alliances we find that the probability that two firms form an alliance decreases when one of the two partners is a start-up firm. We also find that venture-backed start-ups will only be able to increase the probability of forming an alliance when their potential alliance partners are in the same venture capital portfolio.

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


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