Industrial Buyer-Seller Alliances: An Interorganizational Strategic Perspective.

Industrial suppliers often seek close relationships with selected customers in order to obtain certain strategic advantages. These advantages include not only those accruing directly from the preferred position with that particular customer (e.g., an assured outlet for the firm\u27s products), but also those related to the attainment of mutual buyer-seller benefits including, as examples, new product development, new market entry, reduced distribution and shipping costs, and others. These advantages are obtained by the creation of close formal and informal ties or bonds between the firms using joint product development projects, R&D projects, Just-in-Time logistics systems and others. These types of buyer-seller associations have been referred to variously as strategic relationships, partnerships, or alliances. . The purpose of this study was to develop and empirically investigate a model of industrial buyer-seller alliances. Although numerous conceptual industrial buyer-seller alliance models have been proposed (e.g., Dwyer, Schurr, and Oh 1987; Frazier, Spekman, and O\u27Neal 1988), only a handful of empirical studies have been conducted (e.g., Heide and John 1990). The model in this study consisted of a set of situational, process, and outcome dimensions intended to best describe and explain the alliance. It focused on the role and importance of strategic elements (Porter 1985), switching costs (Jackson 1985; Williamson 1975), and cooperation and trust (Contractor and Lorange 1988; Macneil 1980). Thirteen constructs and 21 hypotheses comprised the full study model. A pretest and full study test were employed. The sample consisted of industrial distributor and chemical manufacturing firms. Data collection involved a written, self-report questionnaire completed by key informants. Data analysis on the 163 usable questionnaire was conducted with LISREL (Joerskog and Sorbom 1984) and involved confirmatory factor analysis and structural equation modeling. The findings evidenced substantial statistical support for the model and hypotheses. Hypotheses involving strategic elements, cooperation, and trust were generally supported. Two dimensions of switching costs ( hard and soft assets) were identified but empirical support for their hypothesized role in the model was mixed. Future research directions and managerial implications which emerged from the study are offered

A Network Perspective on Inter-Organizational Transfer of R&D Capabilities: A Study of International Joint Ventures in Chinese Automobile Industry

Multinational enterprises' transfer of R&D capabilities to their international joint ventures in the less developed countries has been an emerging phenomenon. The purpose of this study is to understand the transfer of R&D capabilities between organizations embedded in drastically different organizational contexts using a network perspective. We identified different networks involved in the R&D capability transfer process from the perspectives of source organization, recipient organization and the interface between them, and analyzed the impact of different attributes of these networks on the effectiveness of R&D capability transfer, based on the notion that R&D capabilities are largely collective knowledge.http://deepblue.lib.umich.edu/bitstream/2027.42/39746/3/wp362.pd

A Network Perspective on Inter-Organizational Transfer of R&D Capabilities: A Study of International Joint Ventures in Chinese Automobile Industry

Multinational enterprises' transfer of R&D capabilities to their international joint ventures in the less developed countries has been an emerging phenomenon. The purpose of this study is to understand the transfer of R&D capabilities between organizations embedded in drastically different organizational contexts using a network perspective. We identified different networks involved in the R&D capability transfer process from the perspectives of source organization, recipient organization and the interface between them, and analyzed the impact of different attributes of these networks on the effectiveness of R&D capability transfer, based on the notion that R&D capabilities are largely collective knowledge.R&D capabilities, networks, international knowledge transfer, joint ventures, collective knowledge

The Performance of University Spin-Offs: The Impact of Entrepreneurial Capabilities and Social Networks of Founding Teams during Start-Ups

Objectives: University spin-offs have increasingly received attention from academia, governments, and policymakers because they not only generate new innovations, productivity, and jobs the regional economies but also significantly improve university productivity and creativity (Hayter, 2013, Urbano and Guerrero, 2013). However, a lack of understanding of the contribution made by a founding team to a spin-off’s performance still remains within current studies. Employing a resource-based view theory and social networks approach, this paper addresses this gap by exploring university spin-offs in Spain. Prior work: University spin-off studies have concentrated on analysing entrepreneurial business models (Ndonzuau et al., 2002, Vohora et al., 2004b, Bower, 2003, Mets, 2010) to understand how the commercialization of research is undertaken to create a university spin-off. University spin-offs were also been analysed from the perspective of a university’s capabilities (Powers and McDougall, 2005), or capabilities and social networks of an established spin-off instead of the founding teams (Walter et al., 2006). Moreover, Vohora et al. (2004a) and Shane (2004) have suggested founders need to build capable teams, which must have entrepreneurial capabilities and qualitative social networks, to create effective university spin-offs. Both entrepreneurial capability and social network theory have been studied in prior entrepreneurship research, but have received less attention within the context of the university spin-offs (Gonzalez-Pernia et al., 2013). Approach: Utilising an internet-based survey, this paper explores entrepreneurial capabilities and social networks of founding teams in Spanish university spin-offs using quantitative data analysis. Basing upon resource-based view theory of Barney (1991) to study entrepreneurial capabilities of the founding teams, the research employ entrepreneurial technology, strategy, human capital, organizational viability, and commercial resources (see Vohora et al., 2004a). To study social networks of a founding team, we employ the conceptual model of Hoang and Antoncic (2003) that divides networks into three components: structure, governance, and content. Results and implications: The results from an examination of the sample of 181 Spanish university spin-offs empirically demonstrate that by exploiting social networks a founding team can improve its entrepreneurial capabilities, which in turn enhance its spin-off’s performance. By employing the work of Vohora et al. (2004a) and Shane (2004), this paper constructs a model in which entrepreneurial capabilities play a mediate role between social networks and spin-off’s performance. Thus, the paper has implications for universities in training and policy development to support spin-off’s activity. Value: This study addresses some fundamental questions to contribute to the theory-based understanding of university spin-offs: How do entrepreneurial capabilities of founding teams influence the performance of university spin-offs? How do social networks of founding teams contribute to the process of the university spin-offs

Getting By With The Advice Of Their Friends: Ceos' Advice Networks And Firms' Strategic Responses To Poor Performance

This paper theorizes that relatively poor firm performance can prompt chief executive officers (CEOs) to seek more advice from executives of other firms who are their friends or similar to them and less advice from acquaintances or dissimilar others and suggests how and why this pattern of advice seeking could reduce firms' propensity to change corporate strategy in response to poor performance. We test our hypotheses with large-sample survey data on the identities of CEOs' advice contacts and archival data on firm performance and corporate strategy. The results confirm our hypotheses and show that executives' social network ties can influence firms' responses to economic adversity, in particular by inhibiting strategic change in response to relatively poor firm performance. Additional findings indicate that CEOs' advice seeking in response to low performance may ultimately have negative consequences for subsequent performance, suggesting how CEOs' social network ties could play an indirect role in organizational decline and downward spirals in firm performance.Business Administratio

Transferring Collective Knowledge: Collective and Fragmented Teaching and Learning in the Chinese Auto Industry

Collective knowledge, consisting of tacit group-embedded knowledge, is a key element of organizational capabilities. This study undertakes a multiple-case study of the transfer of collective knowledge, guided by a set of tentative constructs and propositions derived from organizational learning theory. By focusing on the group-embeddedness dimension of collective knowledge, we direct our attention to the source and recipient communities. We identify two sets of strategic choices concerning the transfer of collective knowledge: collective vs. fragmented teaching, and collective vs. fragmented learning. The empirical context of this study is international R&D capability transfer in the Chinese auto industry. From the case evidence, we find the expected benefits of collective teaching and collective learning, and also discover additional benefits of these two strategies, including the creation of a bridge network communication infrastructure. The study disclosed other conditions underlying the choice of strategies of transferring collective knowledge, including transfer effort and the level of group-embeddedness of the knowledge to be taught or re-embedded. The paper provides a group-level perspective in understanding organizational capabilities, as well as a set of refined constructs and propositions concerning strategic choices of transferring collective knowledge. The study also provides a rich description of the best practices and lessons learned in transferring organizational capabilities.http://deepblue.lib.umich.edu/bitstream/2027.42/39804/3/wp420.pd

Corporate Political Strategies in Weak Institutional Environments: A Break from Conventions

There is a lack of research about the political strategies used by firms in emerging countries, mainly because the literature often assumes that Western-oriented corporate political activity (CPA) has universal application. Drawing on resource-dependency logics, we explore why and how firms orchestrate CPA in the institutionally challenging context of Nigeria. Our findings show that firms deploy four context-fitting but ethically suspect political strategies: affective, financial, pseudo-attribution and kinship strategies. We leverage this understanding to contribute to CPA in emerging countries by arguing that corporate political strategies are shaped by the reciprocity and duality of dependency relationships between firms and politicians, and also by advancing that these strategies reflect institutional weaknesses and unique industry-level opportunities. Importantly, we shed light on the muttered dark side of CPA. We develop a CPA framework and discuss the research, practical and policy implications of our findings