The value of cooperation:Studies on the performance outcomes of interorganizational alliances

Strategic alliances have gradually emerged over the last decades as a primary vehicle for corporate growth. Firms increasingly use strategic alliances to enter new markets, develop new products and obtain access to relevant knowledge and technological capabilities. Hoewever, while alliances can promote growth and create value they can also destroy it. The prevalence of alliances coupled with the considerable variation in their success rates has led to an increased effort by both scholars and practitioners to find out whether firms benefit from emerging alliances and what makes for a succesful alliance. Yet, despite the large number of studies conducted to date, past empirical research provides no consensus on (a) whether on average, firms benefit from entering alliances, (b) why some alliances create more firm value than others, and (c) the determinants of the performance of alliances themselves. Research presented in this dissertation uses meta-analysis to address these questions and obtain firm empirical generalizations on the performance outcomes of strategic alliances.

The Value of Cooperation: Studies on the Performance Outcomes of Interorganizational Alliances.

Strategic alliances have gradually emerged over the last decades as a primary vehicle for corporate growth. Firms increasingly use strategic alliances to enter new markets, develop new products and obtain access to relevant knowledge and technological capabilities. Hoewever, while alliances can promote growth and create value they can also destroy it. The prevalence of alliances coupled with the considerable variation in their success rates has led to an increased effort by both scholars and practitioners to find out whether firms benefit from emerging alliances and what makes for a succesful alliance. Yet, despite the large number of studies conducted to date, past empirical research provides no consensus on (a) whether on average, firms benefit from entering alliances, (b) why some alliances create more firm value than others, and (c) the determinants of the performance of alliances themselves. Research presented in this dissertation uses meta-analysis to address these questions and obtain firm empirical generalizations on the performance outcomes of strategic alliances.

Who\u27s Afraid of the Patent Trolls? Assessing the Market Impact of Landmark Patent Troll Litigation Outcomes

Patent trolls have changed the innovation and patent policy landscape. This thesis is an empirical event study that focuses on two landmark cases of patent troll litigation, RIM v. NTP and eBay v. Mercexchange, to determine whether pro-troll litigation outcomes significantly impact the market values of the firms in the high-tech industries they target. I find that the Supreme Court ruling in eBay v. Mercexchange did seem to significantly impact a proportion of firms in the market. The decisive factors in distinguishing affected vs. unaffected firms include a firm\u27s R&D to Sales ratio, market value, and NAICS code specification

Patent challenges and factors associated with successful patent challengers under the patent linkage system: recent evidence from South Korea after the Korea United States free trade agreement

Objectives The patent linkage system upgraded patent challenges to an important factor in granting timely market approval for generic drugs. We aim to understand patent challenges and identify the factors that are associated with successful patent challengers under the patent linkage system in South Korea. Methods We constructed a novel dataset that combined information on manufacturers with detailed data about their patent challenges after introduction of the patent linkage system. Based on the number of successful patent challenges, manufacturers were categorized into non-challengers, passive challengers, and aggressive challengers. Then, two types of logistic models were applied to identify the factors associated with successful and aggressive challengers. Findings Only 39 active ingredients were challenged by 77 manufacturers from March 2015 to December 2019. Of 171 manufacturers, 94 (55 %) were non-challengers, 58 (34 %) were passive challengers who had succeeded in fewer than 4 patent challenges, and 19 (11 %) were aggressive challengers who had succeeded in 4 or more patent challenges. Higher sales, more employees, and a greater number of reimbursed drugs were associated with being a patent challenger, while a greater number of reimbursed drugs was associated with being an aggressive challenger. Conclusion Some manufacturers utilize patent challenges to strengthen their product portfolios in the market. However, under the patent linkage system, the frequency of patent challenges is limited in South Korea compared to the United States. In particular, patent challenges against drugs in injection form and biologics are very rare

Intangibles and the Market Value of Biopharmaceutical Startups

his paper investigates the relationship between various measures of intangible capital and the market valuation of young biopharmaceutical firms. We employ a non-linear model to measure the impact of R&D, patents, alliances, organizational capital, and mergers on the value of 349 newly-incorporated firms between 1980 and 2006. We find that, with the exception of mergers, our measures of intangible capital havepositive and significant effects on market values; the impact of R&D declines as firms mature; and the omission of either alliances or organizational capital leads to a significant overstatement of the influence of R&D

Intangibles and the Market Value of Biopharmaceutical Startups

his paper investigates the relationship between various measures of intangible capital and the market valuation of young biopharmaceutical firms. We employ a non-linear model to measure the impact of R&D, patents, alliances, organizational capital, and mergers on the value of 349 newly-incorporated firms between 1980 and 2006. We find that, with the exception of mergers, our measures of intangible capital havepositive and significant effects on market values; the impact of R&D declines as firms mature; and the omission of either alliances or organizational capital leads to a significant overstatement of the influence of R&D

To Acquire or to Ally? Managing Partners’ Environmental Risk in International Expansion

Environmental risk (ER) has become increasingly crucial in international business, and firms endeavor to integrate environmental risk management (ERM) into business strategies. Examining a sample of cross-border mergers and acquisitions (M&As) and alliances conducted by US firms from 39 host countries over the last two decades, we show that US firms tend to prefer to choose cross-border M&As over alliances when the ER of foreign partners is high, consistent with the prediction of a mean-variance utility model. The propensity towards M&As is amplified by US firms’ corporate governance quality, financial flexibility, and adherence to the host-country’s sustainability disclosure reforms. Further, US firms experience high announcement abnormal returns when they select M&A deals rather than alliances to manage high ER from foreign partners. Overall, our study provides novel insights into ERM in firms’ decision-making around international expansion

Essays On Intellectual Property Litigation

The last couple of decades have witnessed an increase in the number of patent litigations, especially in industries in which patents are a key source of competitive advantage. In my dissertation I examine how patent litigation between firms can influence outcomes at the firm level and at the individual level. In my first essay, I propose that patent litigation conveys negative information about start-ups to incumbent firms. Additionally, I propose that it also undermines the value of signals such as venture capital and alliance network prominence on the formation of alliances in the future. We suggest that these signals aid in the broadcast of the negative information which adversely impacts their prospects of forming alliances. In my second essay, we examine the impact of patent litigation on inventors. Specifically, we propose that such litigation impacts inventor&rsquo;s mobility between firms, in addition to the collaborative relationships they form with inventors within the organization. We suggest that patent litigation, increases the costs associated with their reputation and costs associated with hiring. Additionally, due to an increase in search costs to find collaborators, an increase in costs of collaboration due to reputational concerns of the sued inventors, and the opportunity cost they have to endure to fight litigation, inventors can find it challenging to form relationships that help promote innovation within the firm. Finally, in my third essay, I compare the inclusion of exclusivity provisions in volitional licensing agreements and those that are signed as a result of settlement of patent litigation between parties. Specifically, we suggest that licensing agreements signed post settlement are less likely to include exclusivity provisions due to an increase in the transactional hazards between the parties. Evidence from our data suggest that while exclusivity is used as a contractual safeguard to protect licensee investments in complementary assets especially when there is uncertainty in the technology, this relationship is adversely impacted in the deals signed post settlement. Finally, we also examine the inclusion of exclusivity provisions in settlement contracts signed between parties that relied on relational governance mechanisms such as past licensing relationships. We suggest that it is hard to rebuild the trust that parties once had over repeated interactions with each other, which adversely impacts their choice to grant a partner exclusive access to technologies.</p