Session 129

Putting Things in Context: Competition and Network Dynamics

Track B

Date: Wednesday, October 14, 2009


Time: 10:00 – 11:15


Room: Meeting Room 14

Session Chair:
Emery Yao, Peking University

Title: Competing in the Alliance Portfolio and Competing in the Marketplace: Alliance Dynamics Between Asymmetric Firms


  • Junichi Yamanoi, Waseda University
  • Qing Cao, University of Connecticut

Abstract: Prior research has implied that an alliance between a small firm and a large firm is likely to be unstable, yet little is known about how such an alliance will experience change. In this study, we examine antecedents to the likelihood that a small firm increases or reduces alliance strength with its large partner. We argue that such a change results from: 1) its competition with other firms within the same alliance portfolio of the large partner, and 2) its competition with rivals in the marketplace. Using longitudinal data on alliances between small and large department stores in Japan, we have found support to our theoretical framework.

Title: Does Competition Promote Environmental Investments? Retail Electricity Deregulation and Renewable Generation


  • Eun-Hee Kim, George Washington University

Abstract: The central idea behind economic deregulation is that increased competition provides firms with incentives for greater efficiency. This paper explores how these incentives might bring about unintended consequences–negative environmental externalities–which could ultimately complicate the strategic choices of firms. It examines this question in the context of renewable electricity generation by electric utility companies in the US. In particular, I study how retail electricity deregulation, which allows retail customers to choose their own electricity suppliers, influences firms’ investment decisions on renewables. I find that retail deregulation is associated with lower probability of entry into renewable generation by companies. Furthermore, once a company makes its initial investment, it tends to increase the share of renewables in its portfolio. Together, these findings suggest that the negative effect of retail electricity deregulation on renewables could persist past the initial period.

Title: Globalizing Through Alliances in the Fuel Cell Industry: The Influence of Country Inter-Connectedness and Homogeneity


  • Gurneeta Vasudeva, University of Minnesota
  • Paul Almeida, Georgetown University

Abstract: Based on a longitudinal study of firms’ global fuel cell alliances, we examine the relationship between country configurations of firms’ alliance portfolios and their overall network centrality. Further we investigate the effect of firms’ network centrality on their subsequent innovation and internationalization outcomes. Using a two-staged regression analysis, we find that firms’ network centrality is positively related to the portfolio countries’ technological homogeneity but negatively related to countries’ interconnectedness. Central network positions in turn lead to greater innovativeness, and lower the need to internationalize at a rapid pace. Our findings point to the salience of country contexts within which firms locate their R&D partners and the significance of evaluating performance outcomes of alliance portfolios based on the linkages between the countries that they span.

Title: Selecting Competitive Benchmarks from Different Strategic Groups: The Role of Aspiration and Network


  • Kwangho Kim, City University of Hong Kong

Abstract: This study investigates the boundary that strategic group can serve as a competitive benchmark. Although previous research has suggested that firms within the same strategic group are default benchmark target, this study argues that firms also select competitive benchmarks outside their own strategic groups because of aspiration and network considerations. Based on data analysis from the U.S. automobile industry, the preliminary results show that a firm relies more on others in the different strategic groups than on those within the same strategic group when the firm’s vision is distinctive from its own strategic group members and when the firm’s indirect ties are greater with different strategic group members than with its own strategic group members.

All Sessions in Track B...

Mon: 12:45 – 14:00
Session 123: The Configuration of Alliance Portfolios: Antecedents and Consequences
Mon: 15:45 – 17:00
Session 131: Managing External Relationships: Perception, Judgement and Action
Session 132: Uncertainty and the Leveraging of Relational Mechanisms in Alliances
Mon: 17:15 – 18:30
Session 126: Getting It Right: Buyer-Supplier Relationships
Tue: 10:00 – 11:15
Session 124: License to Deal: Technology Licensing, Innovation, and Corporate Investment
Tue: 11:30 – 12:45
Session 127: Law and Order: Alliance Governance Decisions
Session 134: Organizational Design and Networking Strategies under Uncertainty
Tue: 14:30 – 15:45
Session 128: Is He The One? Partner Selection and Tie Formation
Session 133: The Dynamics of Interorganizational Networks and Their Performance Implications
Wed: 10:00 – 11:15
Session 129: Putting Things in Context: Competition and Network Dynamics
Wed: 11:30 – 12:45
Session 130: Alliances, Knowledge Transfer, and Performance
Session 135: The Good, the Bad and the Not so Bad: Enhancing Performance by Discerning External Relationships

Strategic Management Society

Washington DC