Session 183

Alliance Termination and Survival

Track N

Date: Tuesday, October 6, 2015


Time: 15:45 – 17:00


Room: Governor's Square 9

Session Chair:

  • John Mawdsley, HEC-Paris

Title: Governing Alliance Portfolios: Alliance Termination Decisions under Relational Risks and Structural Constraints


  • Mariia Koval, BI Norwegian Business School
  • Kenneth Wathne, University of Stavanger Business School
  • Rutger van Oest, BI Norwegian Business School
  • Auke Hunneman, BI Norwegian Business School

Abstract: We examine relational and structural antecedents of alliance termination within alliance portfolios – firms’ ego-networks. We suggest that prior partnerships, common partners and joint brokerage position can exert a different impact on the termination likelihood of the alliances with different functions. Given that partners of alliances with an R&D function and of alliances which combine R&D and marketing activities are involved in new product development but face a higher risk of knowledge leakage regarding marketing and/or R&D know-how, their (in)stability is particularly sensitive to relational and structural factors, which create a trade-off between innovation benefits versus opportunistic behavior.

Title: The Fine Line Between Success and Failure: Joint Venture Management at Nestea and Lipton Ice Tea


  • Annika Lorenz, Hasselt University
  • Nadine Roijakkers, Hasselt University
  • Wim Vanhaverbeke, Hasselt University

Abstract: Joint ventures are a popular mode of inter-firm cooperation to achieve various objectives but they are associated with high failure rates. Based on two unique cases in the ready-to-drink tea industry we disentangle the factors of both joint venture success and failure. Although both joint ventures have very similar histories and starting conditions, the joint venture between Nestlé and The Coca-Cola Company collapsed in 2012 whereas the joint venture between Unilever and PepsiCo still prospers. The Nestlé-Coca-Cola joint venture started off on the basis of false expectations and imbalanced capability contributions. Furthermore, communication problems, hidden intentions as well as unclear contributions created distrust, which eventually led to the downscaling of this joint venture. We provide a step-by-step guideline for managers to effectively manage joint ventures.

Title: The Power to Survive: Client Retention and Firm Expansion in Knowledge-based Service Firms


  • John Mawdsley, HEC-Paris

Abstract: Examining supplier-client relationships in patent legal services, I unpack and empirically test two important conditions for the survival of suppliers; client retention and business expansion. First, I theorize and find that suppliers who focus more on serving preferred, long-term clients suffer a survival penalty, but suppliers who receive greater relationship commitment from their clients are more likely to survive. Second, I consider firm expansion in terms of a supplier’s scope of client services, and as the ratio of clients to attorneys. I find that, independently, these expansion strategies confer survival advantages to suppliers, but when implemented jointly, they can attenuate this survival advantage by competing for managerial resources. This paper extends research in the relational-view, corporate diversification, and contributes to resource-based theory.

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

Strategic Management Society