STRATEGIC ALLIANCES AND JOINT VENTURES UNDER NAFTA: CONCEPTS AND EVIDENCE

International Relations/Trade,

Leveraging Open-standard Interorganizational Information Systems for Process Adaptability and Alignment: An Empirical Analysis

PurposeThe purpose of this paper is to understand the value creation mechanisms of open-standard inter-organizational information system (OSIOS), which is a key technology to achieve Industry 4.0. Specifically, this study investigates how the internal assimilation and external diffusion of OSIOS help manufactures facilitate process adaptability and alignment in supply chain network.Design/methodology/approachA survey instrument was designed and administrated to collect data for this research. Using three-stage least squares estimation, the authors empirically tested a number of hypothesized relationships based on a sample of 308 manufacturing firms in China.FindingsThe results of the study show that OSIOS can perform as value creation mechanisms to enable process adaptability and alignment. In addition, the impact of OSIOS internal assimilation is inversely U-shaped where the positive effect on process adaptability will become negative after an extremum point is reached.Originality/valueThis study contributes to the existing literature by providing insights on how OSIOS can improve supply chain integration and thus promote the achievement of industry 4.0. By revealing a U-shaped relationship between OSIOS assimilation and process adaptability, this study fills previous research gap by advancing the understanding on the value creation mechanisms of information systems deployment

Rent Appropriation in Strategic Alliances: A Study of Technical Alliances in Pharmaceutical Industry

Many existing alliance studies have investigated how embedded relations create superior value for organizations. The role of network structure in rent appropriation or pie splitting, however, has been underexplored. We propose that favorable locations in interorganizational networks provide firms with superior opportunities for appropriating more economic benefits from alliances than their partners do. Specifically, we argue that partners’ asymmetric network positions will lead to unequal brokerage positions that promote disparate levels of information gathering, monitoring, and bargaining power, which lead to differing capacities to appropriate value. This in turn results in variations in market performance. We also propose this brokerage position exacerbates existing inequalities such as commercial capital; thus, available firm resources will moderate such network effects. Evidence is presented in the form of market response to technology alliance announcements from a set of pharmaceutical firms. In general, we find that firms within central network positions and those spanning structural holes have higher returns than their partners. In addition, we show that this relationship is contingent upon available firm resources

The Interorganizational Dynamics of Brand Alliances.

The objective of the research is to put in evidence the interorganizational dynamics of brand alliances. More specifically the aim of the paper is to identify the business-to-business interactions within brand alliances through the governance adaptations that occur during a period of time. We show that these governance adaptations result from external (competitive pressure, value perception by consumers and customers) as well as internal forces (objectives and expectations of the partners, network positions, resources of the partners). Consequently the level of stability in the long run of brand alliances can be linked to organizational factors. To do our demonstration we propose an analytical framework that combines IMP concepts with theoretical works on dynamics of strategic alliances. The methodology follows the case study approach, with an empirical application to two examples of brand alliances: a certification brand with a banana brand on the Fair Trade market, and an association brand with a processed pork brand on the health food market.Relations interorganisationnelles; Gouvernance d'entreprise; Marque; Value; Brand Alliances;

Inter-firm Alliances during Pre-standardization in ICT

alliances, ICT, standardization

Simultaneous experimentation as an entrepreneurial strategy for emergent markets: Transcending the trade-off between flexibility and funding?.

The unpredictable nature of emergent markets implies that ventures entering such markets are confronted with technological and commercial uncertainty. Defining a viable business model under such circumstances is a complex and precarious endeavour. Previous research has either advanced the idea of focus – in order to attract resources and realize first mover advantages – or sequential experimentation financed through bootstrapping, implying limited resources during initial phases of the venture. As such, a trade-off between flexibility and resource acquisition has been introduced. Within this contribution we explore how ventures starting up in emergent industries can balance the attainment of financial resources with flexibility and business model adaptation. Based on a sequence analysis of six case studies, we identify two distinctive approaches to business development in emergent industries: focused commitment versus simultaneous experimentation. Our findings reveal that focused commitment is instrumental for acquiring resources but at the same time impedes flexibility, while simultaneous experimentation allows to attract resources while maintaining manoeuvring space for business model adaptation. An analytical comparison of both approaches suggests that simultaneous experimentation is indeed a more viable strategy when entering emergent industries.entrepreneurial opportunities; business model; uncertainty; commitment; experimentation;

Density and Strength of Ties in Innovation Networks: An Analysis of Multi-Media and Biotechnology

In this article we provide an empirical illustration of hypotheses, developed in the literature, on the role of density and strength of ties in innovation networks.We study both exploration and exploitation networks in the Dutch multimedia and pharmaceutical biotechnology industry.We find support for most of our hypotheses but not all.These findings, in line with the mixed results in the literature, seem to indicate that the distinction between exploration versus exploitation, albeit useful, is still too general.There may be a stronger sectoral effect in how exploration and exploitation settle in network structural properties than anticipated thus far.innovation;networks;density;strength of ties;governance;biotechnology;multimedia

Competitive collaboration & market contestability: Cases in Mexican & UK banking (1945-1975)

This research explores the evolution of co-operation among different types of intermediaries in the UK and Mexican financial systems and provides an international comparison. In it we focus on how and why collaboration between commercial banks and non-bank financial competitors emerged in the context of the external innovations that modified the contestability of bank markets. Changes in Mexican banking consider collaboration between commercial banks and small regional banks, with an emphasis on the 1945 to 1975 period. The success of collaboration, between non-bank and non-finance providers to modify competitive capabilities and competitive challenges, in UK deposit markets is the benchmark for co-operation in Mexican banking. Business histories in the UK and Mexico show how some relations emerged out of integration strategies, with the purpose of establishing financial conglomerates. Other banks and non-bank providers in Mexico and the UK sought to create co-operative agreements that developed competitive capabilities and allowed barriers to enter deposit markets to be circumvented. As a result, the research sheds light on the success of collaboration agreements through changes in competitive strength rather than the longevity of the transaction or the formality and structural visibility of the agreements.Comparative Financial Markets (N20), Market Structure (L10), Networks (L22).

Collaboration : a key competence for competing in the 21st century

It is now an accepted fact that in the 21st century competition will be between networks of organisations and individuals, which efficiently and effectively integrate their competencies and resources in order to compete in a global economy (Bititci et al, 2004). Similarly the SME'2000 conference, which was held in Bologna, concluded that 'SMEs belonging to networks are often more competitive and innovative than those operating in isolation. When working together, SMEs can increase their focus through specialisation in functions that are complementary within their networks'

Learning and Innovation in Inter-Organizational Relationships and Networks

This paper gives a survey of insights into inter-firm alliances and networks for innovation, from a constructivist, interactionist perspective on knowledge, which leads to the notion of 'cognitive distance'.It looks at both the competence and the governance side of relationships.Given cognitive distance, organizations need to align cognition sufficiently to enable the fast and efficient utilization of opportunities from complementary capabilities.This, I propose, is done by means of a culturally mediated 'organizational cognitive focus'.The problem with that is that it yields a greater or lesser organizational myopia that, for the sake of innovation, needs to be complemented by means of outside relations with other firms, at larger cognitive distance. Hence the importance of networks for innovation.On the governance side, the paper gives a review of relational risks and instruments to manage them.Next to the effects of cognitive distance, the paper analyses the effects of density and strength of ties in innovation networks, concerning both competence and governance.inter-organizational relationships;networks;competence;governance;innovation;cognitive distance