Dynamic capabilities and their characteristic qualities : insights from a lab experiment

Despite the prominence of dynamic capabilities in the strategy and organization literatures, we still lack an empirically grounded understanding of the construct. Featuring an extended version of an established card game, our study uses an experiment to induce dynamic capabilities in the laboratory. Our findings reveal that (a) more efficient use of resources, (b) increasing efficiency of coordination, (c) reliance on more appropriate action sequences, and (d) greater deliberation in action are characteristic qualities of dynamic capabilities. Beyond empirically identifying dynamic capabilities, we offer implications for dynamic capabilities and transfer theory

Unveiling the temporally contingent role of codification in alliance success

While prior research highlights the importance of codifying alliance experience to achieve alliance success, it is unclear whether codification is equally useful in the different phases of an alliance. Based on a sample of 192 technology firms that report on over 3,400 strategic alliances, we find that in the partner selection and termination phases, reliance on codified knowledge is useful. However, in the partner management phase, reliance on codified knowledge is less beneficial and can be even negatively related to performance. Our findings have implications for the tension between flexibility and efficiency and the relationship between structure and performance. Copyright © 2013 John Wiley & Sons, Ltd

An empirical investigation into the alliance capability development process

This study centers around the way in which firms can enhance alliance performance through the development of alliance capabilities. Whereas most research has focused on inter-firm antecedents of alliance performance, research on intra-firm antecedents pointing to prior experience and internal mechanisms to foster knowledge transfer has only recently emerged. As little is known about how firms develop alliance capabilities, this study aims to uncover how differences in sources of alliance capability development explain performance heterogeneity. The data come from a detailed survey held among alliance managers and Vice-Presidents of 151 firms. The survey covers over 2600 alliances for the period 1997-2001. This study not only finds that alliance capabilities partially mediate between alliance experience and alliance performance, but also yields novel insights into the micro-level building blocks underlying the process of alliance capability development. Key words: alliances, learning, knowledge transfer, alliance experience. JEL classification: L1

Concurrent learning : how firms develop multiple dynamic capabilities in parallel

Much is known about the importance of dynamic capabilities. Yet, surprisingly little is known about how multiple dynamic capabilities might be developed in parallel, since most existing work explores a particular dynamic capability in isolation. Using rich quantitative and qualitative data on Dow Chemical's acquisitions, joint ventures, and divestitures over the past 20 years, we seek to address this gap. Besides contributing by adding fresh insights about managing growth and the utility of distributed practice, and by shedding light on positive and negative experience transfer, our core contribution is an emergent theoretical framework that develops the concept of “concurrent learning. ” Copyright © 2014 John Wiley & Sons, Ltd

Developing expertise through multiple alliance management practices

JEL classification: L1

How Serial Acquirers Become Master Acquirers

While firms increasingly rely on mergers and acquisitions as a key growth instrument, many firms have difficulty successfully integrating the target. To counter the disappointing statistics, some firms like IBM and Xerox use M&A practices that capture learnings to improve M&A integrations. Comparing occasional with master acquirers, we find that those that make effective use of such M&A practices increase their chances of success with up to 24%. While there are plenty of reasons for M&A integrations to fail, we derive four key lessons that give master acquirers a leading edge over their occasional counterparts. The findings are based on survey data by 101 firms engaged in 2,447 integrations over the past decade and one dozen expert interviews. The conclusions are based using case examples of master M&A integration practices from six master acquirers IBM, Xerox, Home Depot, Dow Chemical, GE Capital Finance and SC Johnson. JEL code: G3

The process of postmerger integration : a review and agenda for future research

Mergers and acquisitions (M&As) continue to be prevalent despite frequently yielding disappointing outcomes. Postmerger integration plays a critical role in M&A success, yet many questions about M&A implementation remain unanswered. In this article, we review research on postmerger integration, which we organize around strategic integration, sociocultural integration, and experience and learning. We then lay out a research agenda that centers on expanding our understanding of processual dynamics in postmerger integration. We focus on opportunities related to temporality, decision-making, practices and tools, and emotionality

An Empirical Study

This paper assesses the differential performance effects of learning mechanisms on the development of alliance capabilities. Prior research has suggested that different capability levels could be identified in which specific intra-firm learning mechanisms are used to enhance a firm’s alliance capability. However, empirical testing in this field is scarce and little is known as to what extent different learning mechanisms are indeed useful in advancing a firm’s alliance capability. This paper analyzes to what extent intra-firm learning mechanisms help firms develop their alliance capability. Differential learning may explain in what way firms yield superior returns from their alliances in comparison to competitors. The empirical results show that different learning mechanisms have different performance effects at different stages of the alliance capability development process. The main lesson from this paper is that firms can steer the creation and speed of their alliance capability development as different learning mechanisms have differential performance effects and are more appropriate at different levels of alliance capability. Key words: learning mechanisms, alliance capabilities and competitive heterogeneity. JEL classification: L1