Session 182

Alliances: From Understanding Drivers of Performance to Value-Creation

Track N

Date: Tuesday, October 6, 2015

 

Time: 17:30 – 18:45

Paper

Room: Director's Row J


Session Chair:

  • Viacheslav Iurkov, BI Norwegian Business School

Title: Alliance Networks and Firm Performance: A Variance Decomposition Study

Authors

  • Viacheslav Iurkov, BI Norwegian Business School
  • Amir Sasson, BI Norwegian Business School

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.

Title: Alliance Ownership and Status Imbalances Behind Firm Performance

Authors

  • Sergey Lebedev, University of Texas-Dallas
  • Zhiang Lin, University of Texas at Dallas
  • Mike Peng, University of Texas at Dallas

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.

Title: How do Relational Governance and Value-creating Relational Investments affect Relationship Performance? A Value-enhancement Argument

Authors

  • Muhammad Zafar Yaqub, King Abdulaziz University
  • Rudolf Vetschera, University of Vienna

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.

Title: Partnering in a Haze: Interdependence Misspecification and Firm Performance in Strategic Alliances

Authors

  • Shiva Agarwal, University of Pennsylania
  • Vikas Aggarwal, INSEAD
  • Harbir Singh, University of Pennsylvania

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.

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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