Abstract: In this study, we utilize a multilevel approach to test the extent to which alliance networks account for variation in firm performance. We incorporate alliance network effects along with the fundamental industry, corporate, and business segment effects and find that alliance network effects systematically and significantly contribute to the variation in firm performance. In particular, we find a consistent evidence that the relative importance of alliance networks on firm performance is accountable for nearly 7%. Network effects are very similar to industry effects and are much lower than business segments effects. Further, as the structural complexity of alliance network decreases, from triads to dyads to isolates, alliance networks account for an increasing portion of firm performance.

Abstract: Drawing on the alliance literature and status theory, this study suggests that power imbalance between a firm and its alliance partners is multidimensional in nature and manifested through ownership control, institutional status, and network status differences, with distinct performance consequences for each. Joint consideration of these dimensions also suggests the importance of alignment between them. We hypothesize and find a negative influence of the institutional status difference and a positive influence of the network status difference on a focal firm’s performance—while ownership control does not have a significant effect. We further find that alignment between the dimensions of power imbalance has an additional positive effect on firm performance. Moreover, repeated ties between the firm and its partners may weaken the impact of such alignment.

Abstract: After performing structural equation modelling over 284 supplier-intermediate buyer dyadic relationships, it has been found that the making of value-creating relational investments by focal firm together with creating high relationality in the exchange environment engender high satisfaction, trust and commitment in the exchange partners. This ultimately translates into an enhancement of value/revenues of the supplier firm since the (intermediate) buyers exhibit certain pro-value behaviors like prolonging the relationship, increasing the business share and generating positive word-of-mouth about the focal supplier. The effect of relational governance is fully while that of relational investments is partially mediated through satisfaction, trust and commitment. Relational norms are more efficacious during exploration, build-up and decline phases whereas relational investments exhibit the same only during maturity stage of the relationship evolution.

Abstract: We examine the firm performance implications of managers having only a partial understanding of the true nature of their inter-firm interdependency in the context of alliance relationships. Although ex-ante uncertainty regarding inter-firm interdependence is common in practice when structuring alliance relationships, prior literature provides limited evidence on the implications of such “misspecifications.” We employ a computational model to examine firm performance in an alliance context where firms have either under- or over-specified views of their inter-firm interdependencies. We find that firm performance declines with greater misspecification, with variation in this effect across governance modes and across levels of actual interdependence. In addition, we find that interdependence misspecifications have differing effects on exploration and coordination, leading to tradeoffs between performance and these other non-performance alliance objectives.