Persistence of and interrelation between horizontal and vertical technology alliances

We examine how and to what extent the propensity to be engaged in alliances with different partner types (suppliers, customers and competitors) depends on prior alliance engagement with partner firms of the same type (persistence) and prior engagement in alliances with the other partner types (interrelation). We derive hypotheses from a combined competence and governance view of collaboration, and test these on an extensive panel dataset of innovation-active Dutch firms during 1996-2004. We find persistence in alliance engagement of all three types of partners, but customer alliances are more persistent than supplier alliances. Most persistent are joint supplier and customer alliances, which we attribute to the advantages of value chain integration in innovation processes. Positive interrelation also exists in vertical alliances, as immediate past customer alliances increase the propensity to engage in supplier alliances and vice versa. On the other hand, while prior engagement in horizontal (competitor) alliances increases the propensity to engage in vertical alliances, this effect only occurs with a longer lag. Overall, our findings are highly supportive of the idea that alliance engagement with different partner types is heterogeneous but interrelated. Our analysis suggests that the inter-temporal relationship between different types of alliances may be as important as their simultaneous relationship in alliance portfolios.R&D collaboration, technological partnerships, innovation, path dependency

Persistence of, and interrelation between, horizontal and vertical technology alliances.

The authors explore to what extent there is persistence in, and interrelation between, alliance strategies with different partner types (customers, suppliers, competitors). In a panel data set of innovation-active firms in the Netherlands from 1996 to 2004, the authors find persistence in alliance strategies with all three types of partners, but customer alliance strategies are more persistent than supplier alliance strategies and competitor alliance strategies. A positive interrelation between customer and supplier alliance strategies and a high persistence of joint supplier and customer alliance strategies are consistent with the advantages of value chain integration in innovation efforts. Prior engagement in horizontal (competitor) alliances increases the propensity to engage in vertical alliance strategies, but this effect occurs only with a longer lag. Overall, the authors’ findings suggest that alliance strategies with different partner types are both heterogeneous in persistence and (temporally) interrelated. This suggests that intertemporal relationships between different types of alliances may be as important as their simultaneous relationship in alliance portfolios.

Do scale alliances with competitors improve product performace? A study of the Aircraft industry, 1949-2000

This paper investigates the performance impact of undertaking activities through scale alliances with competitors rather than undertaking these activities autonomously.strategy; governance; alliance; cooperation; performance; scale economies; aircraft

Location and R&D Alliances in the European ICT Industry

This paper shows empirically that in an intra-industry oligopolistic scenario the location of a firm’s innovative activities plays an important role in determining its partner selection in R&D alliances. Such a role is mainly attributed to a strategic use of R&D alliances as a means to limit knowledge flows and protect competences, rather than to promote knowledge flows. By drawing on a novel dataset matching alliances and patent data for the European ICT industry, the econometric analysis shows that partners’ prior co-location (at both national and sub-national regional level), previous ties and technological overlap matter in the choice of partner, while common nationality has a negative impact on alliance formation.Alliances, strategy, efficiency, R&D location

Location and R&D alliances in the European ICT industry

This paper shows empirically that in an intra-industry oligopolistic scenario the location of a firm's innovative activities plays an important role in determining its partner selection in R&D alliances. Such a role is mainly attributed to a strategic use of R&D alliances as a means to limit knowledge flows and protect competences, rather than to promote knowledge flows. By drawing on a novel dataset matching alliances and patent data for the European ICT industry, the econometric analysis shows that partners' prior co-location (at both national and sub-national regional level), previous ties and technological overlap matter in the choice of partner, while common nationality has a negative impact on alliance formation.alliances, strategy, efficiency, R&D location

Location and R&D alliances in the European ICT industry

This paper shows empirically that in an intra-industry oligopolistic scenario the location of a firm’s innovative activities plays an important role in determining its partner selection in R&D alliances. Such a role is mainly attributed to a strategic use of R&D alliances as a means to limit knowledge flows and protect competences, rather than to promote knowledge flows. By drawing on a novel dataset matching alliances and patent data for the European ICT industry, the econometric analysis shows that partners’ prior co-location (at both national and sub-national regional level), previous ties and technological overlap matter in the choice of partner, while common nationality has a negative impact on alliance formation.Alliances, R&D location, strategy, co-location, knowledge flows

A resource need and availability view of the make or ally choice: evidence from the worldwide aircraft industry 1945-2000

This paper investigates why firms choose to undertake product expansion through alliances with competitors rather than on their own.alliance; governance; resource; competence; expansion; growth

Firm dynamic governance of global innovation by means of flexible networks of connections

Today a plethora of inter-company alliances exists. Firms have networked value chains, disclosing consequently their strategy, which assets are internalized or externalized, and their ability to cope with fast change. The picture of all interfirm alliances in high tech sectors is that of an unstable complex network, or macrostructure, that evolves quickly and into which firms are differently entwined. Structural metrics borrowed from network research in sociology such as centrality and constraint (or lack of “structural holes”) can be used to assess dynamically a firm’s position in the macro structure and therefore the market: does the firm occupy a dominant or dominated position in an industry? How do its partners and competitors perform? Drawing also from recent theories on complex networks developed by statistical physicists, we show that firms are embedded in dynamic complex networks that have a ‘scale-free’ format, with only a few firms or “hubs” controlling the system, as well as a cohesive or ‘small-world’ structure. This small-world structure, which allows rapid diffusion of innovation along very short paths, also constrains firms continuously and can lead to a fast reversal of their position on the market. Taking as an example a major sector of the biopharmaceutical industry, this study offers insights for managers to assess effectively their environment and navigate under constant pressure within these ever-changing networks.Innovation; alliances; structural holes; centrality; complex networks; small world