The Self-Organisation of Strategic Alliances

Strategic alliances form a vital part of today's business environment. The sheer variety of collaborative forms is notable - which include R&D coalitions, marketing and distribution agreements, franchising, co-production agreements, licensing, consortiums and joint ventures. Here we define a strategic alliance as a cooperative agreement between two or more autonomous firms pursuing common objectives or working towards solving common problems through a period of sustained interaction. A distinction is commonly made between 'formal' and 'informal' inter-firm alliances. Informal alliances involve voluntary contact and interaction while in formal alliances cooperation is governed by a contractual agreement. The advantage of formal alliances is the ability to put in place IPR clauses, confidentially agreements and other contractual measures designed to safeguard the firm against knowledge spill-over. However, these measures are costly to instigate and police. By contrast, a key attraction of informal relationships is their low co-ordination costs. Informal know-how trading is relatively simple, uncomplicated and more flexible, and has been observed in a number of industries. A number of factors affecting firms' decisions to cooperate or not cooperate within strategic alliances have been raised in the literature. In this paper we consider three factors in particular: the relative costs of coordinating activity through strategic alliances vis-a-vis the costs of coordinating activity in-house, the degree of uncertainty present in the competitive environment, and the feedback between individual decision-making and industry structure. Whereas discussion of the first two factors is well developed in the strategic alliance literature, the third factor has hitherto only been addressed indirectly. The contribution to this under-researched area represents an important contribution of this paper to the current discourse. In order to focus the discussion, the paper considers the formation of horizontal inter-firm strategic alliances in dynamic product markets. These markets are characterised by rapid rates of technological change, a high degree of market uncertainty, and high rewards (supernormal profits) for successful firms offset by shortening life cycles.Strategic Alliances, Innovation Networks, Self-Organisation

A content and comparative analysis of strategic management research in the Baltic area

Purpose – The purpose of this paper is to provide a research agenda for qualitative studies in the field of strategic management (SM) in the Baltic area. Design/methodology/approach – A total of 167 SM-related articles in this area between 2000 and 2013 were found. The content within title, abstract and authors’ keywords was analysed by means of a multiple correspondence analysis based on the HOMALS technique. Findings – The intellectual structure of SM in the Baltic area is to some extent similar to the global structure of the field. Hence research on this topic in the Baltic area is well integrated in the field. Three topics of interest have been identified while the fourth seems to offer more limited opportunities for qualitative studies. These are: entry and competition; strategic behaviour and the micro-foundations of strategy; the growth-performance relationship; and global strategies. Research limitations/implications – Despite the modest number of articles in our sample, the findings are consistent with past research on the structure of the SM field. The classification of articles into qualitative- and quantitative-based methods helped provide a research agenda. Practical implications – SM scholars in the Baltic area may find this paper as an interesting input to their quest for finding and justifying their own research path. Originality/value – This is an original literature review. The use of a quantitative method in the literature review and the suggested matrix is a second original contribution to evolving methodologies for content analysis. The method allows the inclusion of large samples while limiting the use of scholars’ intuition. </jats:sec

The Permeability of Network Boundaries: Strategic Alliances in the Japanese Electronics Industry in the 1990s

This paper looks at the choice of strategic partners for alliance formation in the Japanese electronics industry during the post-bubble economic period 1992-97. Results from a dyad analysis of 128 companies suggest that firms tend to look for partners within their existing vertical keiretsu networks of organizations for alliances that target the creation of resources that build on existing knowledge (production or distribution) but that this common keiretsu effect disappears for alliances that involve new knowledge creation (new product or technology development). The role of corporate networks, environmental uncertainty and their implications for our understanding of strategic alliance formation and the dynamics of social networks are discussed.

The Whole Is More Than the Sum of Its Parts - Or Is It? A Review of the Empirical Literature on Complementarities in Organizations

The concept of complementarity and its role in the design of organizations has enjoyed increasing attention over the past twenty years. We provide a systematic review of the empirical studies on complementarities in leading journals in management, economics and related disciplines that considers the nature of the factors among which complementarities are found to exist, and the effects of complementarities in organizations. Our findings suggest that complementarities result from the skilful matching of heterogeneous resources which generate positive returns above and beyond the effect of each resource generated on its own. In contrast, the empirical evidence on complementarities between individual organizational and HR practices in firms provides mixed conclusions. We show that complementarities are likely to materialize in complex systems of multiple design elements. Therefore, future research should aim at uncovering complementary effects among multiple elements that capture organizational systems better than a few selected elements only do.Complementarities; Organizational Design

Bringing tasks back in: an organizational theory of resource complementarity and partner selection

To progress beyond the idea that the value of inter-firm collaboration is largely determined by the complementarity of the resources held by partners, we build a theoretical framework that explains under which conditions a set of resources or capabilities can be considered as complementary and resulting in superior value creation. Specifically, we argue that the tasks that an inter-firm collaboration has to perform determine complementarities, and that complementarities arise from similar and dissimilar resources alike. We capture this relationship in the concept of task resource complementarity. Further, we examine factors that impact on the relevance of this construct as a predictor of partner selection. Finally, we discuss which implications arise for a theory of the firm when tasks are explicitly incorporated into the conceptualization of resource complementarity

Organizational Culture and Relationship Skills

While both the strategic management and the network literature recognize the importance of inter-firm relationships for explaining competitive advantage, the question why firms differ in their ability to benefit from these relationships is rarely addressed.This paper aims to begin to fill this gap in the literature. We argue that organizational culture is an important factor influencing the relationship skills of a firm, defined as a firm s ability to manage its ties with other firms, whether these are customers, suppliers, or service providers. We assume relationship skills to be especially relevant for the formation and maintenance of close and durable transaction ties.We test our model on a dataset of 127 Dutch inter-firm relations and find general support.Specifically, we find that firms with organizational cultures characterized by an orientation towards stability and predictability, a positive orientation towards innovation, and not characterized by a strong focus on immediate results, score high on relationship skills.Relationship skills, in turn, are found to have a positive influence on the outcomes of inter-firm relationships in terms of learning, achieving innovations and gaining new contacts, but not in terms of immediate (financial) results.corporate culture;interorganizational relations;networks;strategic management;stability;alliance;Netherlands

Japan and Japanese firms: historical and modern lessons for international business and economic development

The obsession in both the popular and academic press about Japan, Japanese firms and their management practices lasted until the 1990s, after which there has been an inexplicable absence of curiosity. I argue here that there is still much to learn, not only from their contemporary activity, but from their historical actions. Less developed countries, in particular, can benefit from a careful study of the Meiji era, during which Japan built up the structure, institutions and organizations that underlay its economic success for much of the 20th century, and was a blueprint for many Asian success stories. The Meiji period was crucial in building up of Japan’s location advantages, and the rapidity of the reforms in this period underlined much of its subsequent growth. I also argue that despite Japan’s economic stagnation since the 1990s, its firms have not been stationary. There has been considerable evolution in the management and structure of Japanese firms and its innovation system. Such developments represent a useful preview of challenges ahead for the more advanced emerging economies such as China and India, as well as newer advanced economies, such as Korea

Founders\u27 Credentials and Performance of Startups

In this dissertation, I unpack startup founders’ characteristics and investigate their impact on the performance of young high-tech startups. I distinguish specific aspects of founders that convey their unobservable quality and human capital, and advance new arguments that deepen our understanding about founders’ role in shaping the prospects and performance of young high-tech startups. In particular, I examine founders’ distinct technical and entrepreneurial credentials that have the effect of facilitating important milestones for startups, such as strategic alliances and initial public offering, which ensure startups’ growth and survival. Further, I also investigate the contingent effects of these credentials of startup founders on the degree of uncertainty that prevails for potential alliances partners and investors about startups’ underlying quality. In three essays that comprise this dissertation, I find evidence that startup founders’ scientific and entrepreneurial credentials promote favorable cooperative commercialization agreements for startups with alliances partners and accelerate their initial public offerings. I also find evidence that these distinct credentials of founders are more useful when there is higher uncertainty about startups’ quality. These findings have important implications for research in strategy and entrepreneurship about the significance and enduring impact o

Strategic technology alliances, technology transfer and the performance of Malaysian manufacturer

Organizations are realizing the strategic importance of technology alliances to enhance and maintain their competitive advantage. The turbulent business environment compels firms to adopt appropriate technologies for effective and efficient operations. While many firms are inclined to source external technology or form alliances, there are various considerations that can affect the success of such initiatives. This study examines the relationship between factors enabling strategic technology alliances (STAs), technology transfer and organizational performance. Based on three theories namely: Resource-based View (RBV); Organizational Learning Theory (OLT); and Technology Acceptance Model (TAM), this paper presents a model on the antecedent and outcomes of STA that is analyzed using structural equation modeling (SEM). The findings depict that absorptive capacity, type of alliances; relative advantage and perceived ease of technology implementation affect the alliance, which in turn determine organizational performance. Further tests show that technology transfer only partially mediates the relationship between STA and organizational performance. This research provides platforms and consideration for the implementation of new technologies and capabilities in manufacturing firms in a developing nation