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

Modes de lancement de nouveaux produits et performance. Le cas de l'industrie de la construction aéronautique (1944-2000)

The objective of this research is to examine whether the organisational forms used by firms influence their capacity to grow and thrive sustainably in a given business domain. In particular, we investigate if introducing new products through internal developments, alliances or license purchases influences the capacity of firms to obtain the resources and competences necessary to establish a strong competitive position in a given market. Drawing on the Resource-based View (Penrose, 1959), the Evolutionary Theory (Nelson and Winter, 1982) and the Dynamic Capabilities Approach (Teece, Pisano and Shuen, 1997), we formulate several sets of hypotheses on the determinants of New Product Introduction (NPI) modes and on the consequences of these expansion modes chosen by firms on their competitive position. By examining 437 new aircraft programs that have been introduced since 1944, we verify that the NPI modes chosen by firms have a significant and sustainable influence on their capacity to obtain the resources and competences necessary to establish a strong competitive position in the concerned business domain. Developing new products internally seems to be the most effective way to grow and thrive sustainably. Nevertheless, unlike license purchases, alliances may enable firms to sustainably compete with firms which did not need to resort on external contributions. It is then necessary to manage to develop new products on a stand alone basis the earliest possible, which can only be done at a certain cost and under specific conditions.L'objectif de cette recherche est d'examiner l'influence des formes organisationnelles utilisées par les entreprises sur leur capacité à prospérer durablement sur un secteur d'activité donné. En particulier, nous étudions si lancer des produits par l'intermédiaire de développements internes, d'alliances ou d'accords de licence influence la capacité des entreprises à obtenir des moyens permettant d'occuper durablement une position concurrentielle solide dans un secteur d'activité donné. Nous avons alors mobilisé la théorie de la ressource (Penrose, 1959), la théorie évolutionniste (Nelson et Winter, 1982) et l'approche par les compétences dynamiques (Teece, Pisano et Shuen, 1997) pour formuler plusieurs séries d'hypothèses, portant d'une part sur les déterminants des modes de lancement de produits et d'autre part sur les conséquences de ces choix de mode d'expansion sur la position concurrentielle des entreprises. En analysant 437 lancements de modèles d'avion réalisés depuis 1944, nous avons vérifié que les modes de lancement de produits utilisés par les entreprises ont une influence significative et durable sur leur capacité à obtenir les moyens permettant d'occuper une position concurrentielle solide dans un secteur d activité donné. Le développement interne semble ainsi être le mode le plus efficace pour prospérer durablement. Toutefois, à la différence des accords de licence, les alliances semblent parfois permettre de concurrencer les entreprises qui n'ont pas besoin de recourir à des apports externes. Il faut toutefois parvenir à utiliser le développement interne le plus tôt possible, ce qui ne peut se faire qu'à un certain prix et dans des conditions précises

The contingent value of initial collaborations for the establishment of later autonomous operations

This study examine why some firms that are operating in an area of business through collaborations eventually become independent whereas others continue to collaborate. Using data on the aircraft industry, we show that experience with collaboration alone is insufficient to allow firms that were formerly in collaborations to establish autonomous operations. Collaborative experience needs to be partner-specific, gathered in contexts involving low levels of causal ambiguity, and fairly recent to help former partner firms obtain the resources required to establish autonomous operations. We then discuss how our study contributes to the interorganizational learning literature

Sibling rivalry vs. cousin solidarity:How ownership influences performance in franchise chains

This study applies agglomeration theory to multiunit chains that co- locate corporate and franchised units. We analyze how the performance of a corporate unit is influenced by co-located same-chain units, distinguishing the effects by ownership structure. We argue that corporate ownership and franchising entail different managerial incentives and routine structures that influence the nature of within-chain competition. We predict that a corporate unit’s performance is decreased by co-located corporate sisters but increased by co-located franchised cousins. We support our predictions using data from the hospitality industry. We contribute to the agglomeration and franchising literatures and extend research on managing multiunit chains

How a firm's knowledge base influences its external technology sourcing strategy:The case of biopharmaceutical firms

It is widely accepted in innovation management literature that a firm can increase its competitive advantage by recombining knowledge and that knowledge recombination requires engagement in external sourcing activities. What is less known, however, is how a firm's external sourcing strategy - notably its propensity to engage in acquisitions or alliances - is influenced by its internal knowledge base. In this paper, we examine how two critical characteristics of a firm's knowledge base, namely, scientific orientation and technological diversity, influence the extent to which it engages in alliances or acquisitions. We find that both explanatory variables increase firms' likelihood of engaging in external technology sourcing and favouring alliances over acquisitions. Our analyses are based on a sample of European firms operating in the biopharmaceutical industry

How a firm's knowledge base influences its external technology sourcing strategy: The case of biopharmaceutical firms

It is widely accepted in innovation management literature that a firm can increase its competitive advantage by recombining knowledge and that knowledge recombination requires engagement in external sourcing activities. What is less known, however, is how a firm's external sourcing strategy - notably its propensity to engage in acquisitions or alliances - is influenced by its internal knowledge base. In this paper, we examine how two critical characteristics of a firm's knowledge base, namely, scientific orientation and technological diversity, influence the extent to which it engages in alliances or acquisitions. We find that both explanatory variables increase firms' likelihood of engaging in external technology sourcing and favouring alliances over acquisitions. Our analyses are based on a sample of European firms operating in the biopharmaceutical industry