Attitude and behaviour dichotomy in SME strategic alliance: A south west of Western Australian study

Strategic alliances are generally perceived as cooperative relationships constrained within the parameters of bounded rationality, seeking to maximise their levels of control in a turbulent economic environment. They are also commonly conceptualised as a means of creating competitive advantage in business. In regional areas of Western Australia they are favoured by government instrumentalities as a means of making small to medium enterprises (SMEs) more competitive. With the dominant global emphasis in the literature on big business, relatively little is known still about strategic alliances in small to medium enterprises. Moreover, the research on strategic alliances within Australia s also limited, and since 92 %or businesses in Australia arc SMEs (ABS 1999), there are significant gaps in the literature about a significant contributor to economic health or the nation. For these reasons this thesis focuses attention on SMEs in Australia, in particular the South West of Western Australia. This thesis is concerned with strategic alliance propensity in selected small to medium enterprises with less than 500 employees but three or more employees including family members. Mixed methodology data collection was used; based on an extensively validated international survey instrument, and a series of in-depth interviews. The outcome of the study was a synthesised model of SME strategic alliance decision-making which addresses the impacts on attitudes of SME Key Decision-Leaders choosing either positive or negative behaviours relating to strategic alliance formation. The development of this model, the Strategic Alliance Participation Paradigm (SAPP) was achieved through an iterative approach to environmental exploration, literature scanning and analysis and the application of a mixed methodological approach to data collection. Chapters One to Three present the development of the research questions and the research process adopted to address important elements or the research. Chapter Four presents the major consolidated findings based on factor analysed outcomes. Variables were subjected to logistic regression statistical analysis determining support for hypothesised research outcomes. In depth interviews provide evidence of the SME domain, in the context initially of the regional area under review. Conclusions arc further reviewed in the context or a recent significant Norwegian culturally based survey. The Strategic Alliance Participation Paradigm reflects the work carried out by a small group of earlier researchers, and further, empirically tests the determinants of SME Key-Decision-Leader strategic alliance behaviour. Recommendations for future research developed from the research findings arc presented in Chapter Five supporting the conclusions und implications of this study for future SME strategic alliance research both regional and global. Benefits from this process will be seen in the enhanced ability to benchmark at source regional differences and similarities, and thereby to further enhance the value of the outcomes to scholars and practitioners. Researchers could do well to pursue understanding of identified gaps in knowledge and to cooperate with industry to enhance alliance behaviour, achieving benefits through philosophy of competitive tendering. Significant within the outcomes however, was the identified need to research ways to support and grow the large sector of Australian business, the small to medium enterprise

What Are the Useful Past Inter-Organizational Relationships (IORs) for Forming Complex IORs?

Purpose: The purpose is to explore the relationship between prior and later inter-organizational relationships (IORs) by studying whether past experience can be leveraged on when forming new, more complex, IORs. Methodology: Participation in prior IORs is characterized in terms of both resource- transferring and resource-pooling IORs in home-country networks, while complex IORs are considered those with foreign partners. An empirical test on 366 Italian firms is performed using OLS with robust standard errors. Findings: Both resource-transferring and resource-pooling IORs have non-convergent effects. The former has controversial effects on the base of the position a firm occupies, that in turn affects the structure of interests between the partners. The latter has different effects in line with the information complexity of the objective of the relationship. Research Implications: Results provide support to the idea that structure of interests and information complexity represent \u201cdiscriminating characteristics\u201d that identify salient structural alternatives in the analysis of inter-firm organization. Practical Implications: The paper advances that firms can partially leverage on the exploitation of prior experience in settings that are explorative in nature, by carefully selecting within past experiences. Originality: A distinction between coordination \u201cgiving\u201d and coordination \u201ctaking\u201d IORs is proposed to discern among different types of inter-firm coordination forms

Assessing partnership alternatives in an IT network employing analytical methods

One of the main critical success factors for the companies is their ability to build and maintain an effective collaborative network. This is more critical in the IT industry where the development of sustainable competitive advantage requires an integration of various resources, platforms, and capabilities provided by various actors. Employing such a collaborative network will dramatically change the operations management and promote flexibility and agility. Despite its importance, there is a lack of an analytical tool on collaborative network building process. In this paper, we propose an optimization model employing AHP and multiobjective programming for collaborative network building process based on two interorganizational relationships’ theories, namely, (i) transaction cost theory and (ii) resource-based view, which are representative of short-term and long-term considerations. The five different methods were employed to solve the formulation and their performances were compared. The model is implemented in an IT company who was in process of developing a large-scale enterprise resource planning (ERP) system. The results show that the collaborative network formed through this selection process was more efficient in terms of cost, time, and development speed. The framework offers novel theoretical underpinning and analytical solutions and can be used as an effective tool in selecting network alternatives

Unbundling dynamic capabilities for inter-organizational collaboration

Purpose The purpose of this paper is to explore two distinct subsets of dynamic capabilities that need to be deployed when pursuing innovation through inter-organizational activities, respectively, in the contexts of broad networks and specific alliances. The authors draw distinctions and explore potential interdependencies between these two dynamic capability reservoirs, by integrating concepts from the theoretical perspectives they are derived from, but which have until now largely ignored each other – the social network perspective and the dynamic capabilities view. Design/methodology/approach The authors investigate nanotechnology-driven R&D activities in the 1995–2005 period for 76 publicly traded firms in the electronics and electrical equipment industry and in the chemicals and pharmaceuticals industry, that applied for 580 nanotechnology-related patents and engaged in 2,459 alliances during the observation period. The authors used zero-truncated Poisson regression as the estimation method. Findings The findings support conceptualizing dynamic capabilities as four distinct subsets, deployed for sensing or seizing purposes, and across the two different inter-organizational contexts. The findings also suggest potential synergies between these subsets of dynamic capabilities, with two subsets being more macro-oriented (i.e. sensing and seizing opportunities within networks) and the two other ones more micro-oriented (i.e. sensing and seizing opportunities within specific alliances). Practical implications The authors show that firms differ in their subsets of dynamic capabilities for pursuing different types of inter-organizational, boundary-spanning relationships (such as alliances vs broader network relationships), which ultimately affects their innovation performance. Originality/value The authors contribute to the growing body of work on dynamic capabilities and firm-specific advantages by unbundling the dynamic capability subsets, and investigating their complex interdependencies for managing different types of inter-organizational linkages. The main new insight is that the “linear model” of generating more innovations through higher inter-firm collaboration in an emerging field paints an erroneous picture of how high innovation performance is actually achieved

The Contribution of Global Alliances to Airlines’ Environmental Performance

Global alliances have traditionally been related to improvements in the economic and operational performances of companies, particularly in the airline industry. However, we still do not know the effect of the participation in this kind of multilateral agreement on the environmental performance of airlines. The main aim of this work is to analyze whether the alliance membership of airlines has an effect upon their environmental performance, and if so, whether or not the characteristics of the global alliance, as well as the business model of the airline, may influence this relation to a greater or lesser extent. The results of regression and Analysis of Variance (ANOVA) in a sample of 252 airlines (58 included in one of the three global alliances: Star Alliance, Oneworld, and SkyTeam) show a strong and inverse relationship between environmental performance and belonging to an alliance. The paper also shows empirical evidence of the influence of the business model of the airline on environmental performance. These results suggest important implications for managers facing challenges regarding sustainability

Cooperative Or Controlling? The Effects Of Ceo-Board Relations And The Content Of Interlocks On The Formation Of Joint Ventures

This study examines the influence of the social network of board interlocks on strategic alliance formation. Our theoretical framework suggests how board interlock ties to other firms can increase or decrease the likelihood of alliance formation, depending on the content of relationships between CEOs (chief executive officers) and outside directors. Results suggest that CEO-board relationships characterized by independent board control reduce the likelihood of alliance formation by prompting distrust between corporate leaders, while CEO-board cooperation in strategic decision making appears to promote alliance formation by enhancing trust. The findings also show how the effects of direct interlock ties are amplified further by third-party network ties.Business Administratio

Antecedents of trust in international joint ventures' (IJVS) performance in developing countries: A review of empirical evidence

Trust in international joint venture has received much attention for the last 20 years. This study highlights the importance of social capital in international joint ventures (IJVs) in developing countries. This paper assesses the impact of antecedents of trust on performance of international joint ventures in developing countries, which is based on social exchange theory. Little attention has been paid to exploring the concept in IJV. The impacts of components of inter partner-fits and relational factors on trust and the effect of trust on performance of IJVs will be considered. In addition the impact of religion and country risk on level of trust in IJVs in these countries will be evaluated. A framework has been developed based on this review analyses and integrates empirical evidence in order to identify convergence and conflict in IJV. The paper addresses a problem of relevance to both international academics and practitioners in addressing managerial implications. It is hoped that the study will provide a meaningful implication to the process of selection of IJV partners

Quantifying knowledge exchange in R&D networks: A data-driven model

We propose a model that reflects two important processes in R&D activities of firms, the formation of R&D alliances and the exchange of knowledge as a result of these collaborations. In a data-driven approach, we analyze two large-scale data sets extracting unique information about 7500 R&D alliances and 5200 patent portfolios of firms. This data is used to calibrate the model parameters for network formation and knowledge exchange. We obtain probabilities for incumbent and newcomer firms to link to other incumbents or newcomers which are able to reproduce the topology of the empirical R&D network. The position of firms in a knowledge space is obtained from their patents using two different classification schemes, IPC in 8 dimensions and ISI-OST-INPI in 35 dimensions. Our dynamics of knowledge exchange assumes that collaborating firms approach each other in knowledge space at a rate $\mu$ for an alliance duration $\tau$. Both parameters are obtained in two different ways, by comparing knowledge distances from simulations and empirics and by analyzing the collaboration efficiency $\mathcal{\hat{C}}_{n}$. This is a new measure, that takes also in account the effort of firms to maintain concurrent alliances, and is evaluated via extensive computer simulations. We find that R&D alliances have a duration of around two years and that the subsequent knowledge exchange occurs at a very low rate. Hence, a firm's position in the knowledge space is rather a determinant than a consequence of its R&D alliances. From our data-driven approach we also find model configurations that can be both realistic and optimized with respect to the collaboration efficiency $\mathcal{\hat{C}}_{n}$. Effective policies, as suggested by our model, would incentivize shorter R&D alliances and higher knowledge exchange rates.Comment: 35 pages, 10 figure