Measures of collaborative venture performance: An analysis of construct validity

This study presents a methodology to evaluate the construct validity of measures of collaborative venture (CV) performance and applies it to a sample of 69 CVs. After discussing content validity of the different measures, empirical results show that subjective measures of CV performance are reliable and present convergent validity. Results also support their discriminant validity with respect to other measures such as contractual changes, but not to longevity; no conclusive evidence is found with respect to survival.methodology; collaborative venture;

Testing Assumptions about Evaluating Strategic Alliance Performance

Researchers have used a variety of measures to evaluate strategic alliance performance. In this paper we use data collected on performance of R&D consortia in the U.S. and of Spain-based equity and non-equity dyadic alliances to investigate empirically five basic assumptions made by strategic alliance researchers. We find that while several assumptions are supported, others are not. Results are consistent across samples. We conclude with recommendations for how to evaluate performance in future research into strategic alliances.strategic alliances; performanca evaluation; equity alliances; consortia;

Alliance contractual design

Our purpose in this paper is to provide an overview of what we know about alliance contracts. After a short introduction to the contents of alliance contracts, we start by contrasting alliance contractual form and governance form. Next, we focus on two related constructs: contractual complexity and contractual completeness. We suggest that contractual complexity is a more adequate construct to investigate in the absence of information about the transaction contemplated in the contract. After that, we present the measures of contractual complexity used in past studies. Then, we go over the determinants of contractual complexity by considering their influence on contracting costs and benefits given environmental and behavioral uncertainty. Conclusions and suggestions for research are offered at the end.alliance contracts; collaborative relationships; contractual complexity; strategic alliances; cooperation; joint ventures;

Contractual heterogeneity in strategic alliances.

We investigate firms' alliance design choices by examining alliances as multifaceted contractual forms. The analysis explores the contractual heterogeneity underlying alternative governance structures for alliances, the bundling of different contractual provisions, and the dimensionality of the contractual completeness construct. The empirical evidence indicates that the complexity of collaborative agreements ­in terms of the number and stringency of provisions­ is greater for alliances that are strategically important and that involve high levels of asset specificity. Factor analysis of tetrachoric correlations among eight contractual provisions reveals two distinct dimensions of contractual completeness. Partners with prior collaborative relationships tend to institute fewer contractual provisions for monitoring and control of an alliance. Relative to open-ended contractual agreements, time-bound alliances tend to rely less heavily on such provisions, but more so on safeguards concerning confidential and proprietary information, alliance termination, and the adjudication of disputes by third parties.alliance design; governance structures; collaborative agreements; alliance termination;

Governance changes in strategic alliances: Antecedents of contractual renegotiations

This study provides an empirical investigation of the incidence and antecedents of contractual renegotiations in strategic alliances. We bring together initial conditions based on transaction cost theory and ex post contingencies highlighted by recent conceptual and qualitative research on the evolution of collaborative agreements. The results indicate that firms tend to change the governance of alliances when a misalignment exists between the chosen structure and features of the transaction. Further, we find that asset specificity affects alliance design as well as post-formation governance decisions. Contractual alterations are more likely in the presence of strategic change and when firms employ less extensive ex post deterrents in their alliances. We find no evidence that cross-border ventures are any more or less likely to experience contractual renegotiations than domestic alliances.Strategic alliances; renegotiation

Role of justice theory in explaining alliance negotiations, The

We report data from a revelatory qualitative case study of a failed attempt to negotiate an international joint venture agreement. We analyze issues of justice and the role that their occurrence in the course of the negotiations might have played in this outcome. These potential antecedents of the failure were derived from theories of organizational justice. The results support an argument that organizational justice theory, particularly interactional justice, can play an important role in explaining alliance negotiation outcomes.strategic alliances; alliances negotiations; justice theory;

Alliance dynamics for entrepreneurial firms

Small firms are thought to encounter various difficulties implementing strategic alliances. Due to these problems, they may be less able to reap the benefits of alliance adaptation, and the changes that occur in alliances over time often will not coincide with the small firm's interests. The evidence we present on contractual renegotiations in alliances suggests that small firms are no more or less likely to experience contractual changes in general. However, small firms tend to bear inefficiencies of two kinds in their collaborations. They are less likely to adapt alliances in the presence of governance misalignments. Furthermore, they are prone to make greater transaction-specific investments without commensurate contractual safeguards, which can lead to ex post hold-up in the form of contractual renegotiations.strategic alliances; entrepreneurial firms; small firms; contractual renegotiation; governance misalignment;

More than two are a crowd. Different paths to effectiveness in dyadic and multi-party joint ventures

Using data from 87 joint venture (JV) experiences, we compared the effectiveness of dyadic and multi-party JVs. We show that dyadic JVs are more effective than multi-party ones, and that the conditions resulting in an enhanced effectiveness differ for the two groups: while relational embeddedness significantly influences the effectiveness of dyadic JVs, monitoring mechanisms are pivotal in the case of multi-party JVs.joint venture;

Cooperation, competition and the longevity of stakes in joint ventures: A value creation approach

This research used a transaction value perspective (Zajac and Olsen, 1993; Madhok and Tallman, 1998) to examine the impact of competitive and cooperative forces on joint venture (JV) duration. We argue that some factors increasing the management cost of the JV may also increase its value potential. Such factors include whether the partners are direct competitors, and whether their nationality is the same. Findings from a survey study provided support for all of our hypothesesCooperation; joint ventures; competition;

Longevity of strategic alliances between competitors: A dynamic value creation approach

Strategic alliances (SAs) present both a high value creation potential as well as entailing high management costs. Research on SA duration has generally focused on factors that affect management costs. The underlying logic in these papers is that factors that increase management costs reduce the likelihood of SA survival and, therefore, SA longevity. The basic assumption is that these factors do not affect the rent-generating potential of the SA. However, we argue that certain factors that increase management costs also increase the rent-generating potential. In particular, this is the case in SAs between competitors. This view complements that of SAs between competitors as learning races. The purpose of the present paper is to shed light on the question of how the fact that the partners in a SA are competitors affects the SA's chances of survival and its longevity.Strategic alliances; value creation;