17 research outputs found
Partner Selection Criteria in Strategic Alliances When to Ally with Weak Partners
In many emergent markets, cross-industry alliances are necessary to develop and market new products and services. The resource-based view suggests that firms form alliances to access or acquire valuable, rare, non-imitable and non-substitutable resources, and that such access determines the level of profits. Hence, firms confronted with the choice between partners with strong versus partners with weak resource endowments should choose the former. We contest this view and argue that firms benefit from allying with weak partners at certain times. In essence, we suggest that partner selection involves assessing the relative importance of strong resource endowments and aligned strategic aspirations over time. By adopting an evolutionary approach, we show that appropriate partner selection criteria are dynamic and may involve allying with weak partners in the initial exploratory stage, with weak and/or strong partners in the development stage and with strong partners in the maturity stage. Our findings suggest that the resource-based understanding of strategic alliances should be extended to include a more profound role for a partner firm’s strategic aspiration.Strategic alliances, partner selection, resources, aspirations
When to Ally with Weak Partners
In many emergent markets, cross-industry alliances are necessary to develop and market new
products and services. The resource-based view suggests that firms form alliances to access or
acquire valuable, rare, non-imitable and non-substitutable resources, and that such access
determines the level of profits. Hence, firms confronted with the choice between partners with
strong versus partners with weak resource endowments should choose the former. We contest this
view and argue that firms benefit from allying with weak partners at certain times. In essence, we
suggest that partner selection involves assessing the relative importance of strong resource
endowments and aligned strategic aspirations over time. By adopting an evolutionary approach, we
show that appropriate partner selection criteria are dynamic and may involve allying with weak
partners in the initial exploratory stage, with weak and/or strong partners in the development stage
and with strong partners in the maturity stage. Our findings suggest that the resource-based
understanding of strategic alliances should be extended to include a more profound role for a
partner firm’s strategic aspiration
The case of Mobile Commerce
Many companies in the cross section of telecommunication and mobile technology engage in R&D collaborations to manage uncertainty, create synergies and learn. While the challenges of managing individual collaborations are well documented, little is known on how to systematically manage several R&D collaborations simultaneously. We use modern portfolio theory as an analogy to show how companies active in mobile telecommunication manage risks and create synergies by simultaneously engaging in several inter-firm collaborations.
Keywords: Portfolio theory, risk, synergy, R&D collaboration, mobile commerc
The influence of technological regimes and strategic postures
IT-enabled innovations are of increasing importance for competitive success in most sectors today. This paper offers a novel theoretical and empirically illustrated explanation of why IT-outsourcing strategies differ between innovative first-movers, fast followers and late entrants. In particular, an analysis of three companies in the financial sector - Charles Schwab, Fidelity Investment, and Merrill Lynch - reveals that governance choices influence a company’s ap-propriable learning curve advantage to slow down or speed up adoption and imitation of IT-enabled innovation. Moreover, we discuss the implications of governance choices in techno-logical environments characterised by either accumulation or disruption. Keywords: IT-enabled innovation, outsourcing, technological regime, strategic posture, first-mover advantages, financial services, online brokerag
what do we know and need to know?
This paper presents a review of existing theoretical perspectives and empirical work on strategic
IT outsourcing. By presenting the main findings of various recent studies and elaborating on
current research gaps it conveys a picture of the past research, the present findings and the future
applications of IT outsourcing. Prior research has generated theoretical insights and largely qualitative
evidence on IT outsourcing. While quantitative studies remain sparse, limited to decisionmaking
and performance, there is a lack of quantitative empirical research examining outsourcing
processes more comprehensively. This paper outlines a simple, yet integrative process model and
develops propositions, which serve to integrate and compare theoretical strands, to evaluate existing
empirical research and to stimulate new avenues of empirical research