Session 229

Alliances and Corporate Strategy

Track F

Date: Monday, October 12, 2009

 

Time: 15:45 – 17:00

Paper

Room: Meeting Room 9


Session Chair:
Beverly Tyler, North Carolina State University

Title: International Alliance: Impact on Creativity and Performance of Professional Service Firms-Study of Indian Advertising Agencies

Authors

  • Somnath Dutta, Indian Institute of Management-Calcutta

Abstract: Is international alliance detrimental to the creativity and performance of Professional Service firms? This proposal addresses this question by looking at the unique context of a panel of Indian advertising firms. The impact of the partner resource, the search behavior and standardizations associated with an international alliance on the human capital intensive and knowledge intensive nature of the advertising firm is expected to throw counter intuitive insights. The study proposes the innovative use of advertising awards as a measure of firm creativity and hopes to make valuable addition to the extant alliance and creativity literature.

Title: Organizational Differences between Partners and Their Consequences for Alliance Performance

Authors

  • Dovev Lavie, Technion-Israel Institute of Technology
  • Pamela Haunschild, University of Texas-Austin
  • Poonam Khanna, University of Texas-Austin

Abstract: How do organizational differences between alliance partners affect alliance performance? We argue that in non-equity alliances, congruence of partners’ organizational routines is more critical to alliance performance than the cultural alignment of the two firms. Our analysis of 420 alliances in the information technology industry supports this assertion and demonstrates how differences in partners’ task orientation undermine relational mechanisms -- mutual trust, social embeddedness and relational commitment -- which in turn impact alliance performance. We also show that partners that acknowledge their latent organizational differences can overcome some of these negative consequences. We advance alliance research by uncovering the multifaceted nature of organizational differences and their performance effects, and by demonstrating how these effects are mediated by relational mechanisms.

Title: Target Selection and Value Appropriation: The Role of Board Interlocks in Research Intensive Industries

Authors

  • Matthew Higgins, Georgia Institute of Technology
  • Adetunji Adegbesan, Pan-Atlantic University

Abstract: High levels of uncertainty and information asymmetries often make accessing external technology markets a difficult proposition. Alliances are viewed as a mechanism in which to help alleviate some of these concerns. This “try before you buy” approach allows firms to assess a technology and continue with its development in a less costly manner. Missing from this approach is a discussion on how appropriate alliance partners are chosen and whether these choices have an impact on value appropriation. This paper explores the role board interlocks play in alliance formation and subsequent value appropriation between parties. We find that board interlocks serve to help alleviate information asymmetries, which in turn facilitates future alliances. In addition to target selection we find that board interlocks serve as a mechanism to appropriate more value.

Title: The Effect of Alliance Portfolio Orientations on Radical and Incremental Innovation in the US Biopharmaceutical Industry

Authors

  • Turanay Caner, St. John's University
  • Beverly Tyler, North Carolina State University

Abstract: In this study we integrate the organizational learning literature on exploration and exploitation, alliance portfolio research, and research on absorptive capacity. We argue that the more exploratory firms’ alliance portfolios the more successful they will be in producing radical innovations, while the more exploitative firms’ alliance portfolios the more successful they will be in producing incremental innovations. Furthermore, drawing on absorptive capacity arguments we posit how firms’ knowledge stock moderates these relationships. Finally, we test to see if firms with balanced alliance portfolio orientations produce more innovations than those with exploratory or exploitative orientations using a sample of U.S. biopharmaceutical companies. We contribute to both alliance and innovation literature by demonstrating the differential effects of alliance portfolio orientation on radical and incremental innovation.

All Sessions in Track F...

Sun: 10:00 – 11:30
Session 260: Writing Workshop for Doctoral Students and Junior Faculty
Sun: 13:00 – 14:30
Session 261: Shareholder Primacy and Corporate Policy
Sun: 15:00 – 16:30
Session 262: The Role of Government in M&A Activity
Sun: 16:30 – 17:30
Session 310: Corporate Strategy & Governance, IG Meeting
Mon: 12:45 – 14:00
Session 198: Perspectives on CEO Succession
Session 228: Business Groups, Alliances, and Contracts
Mon: 15:45 – 17:00
Session 229: Alliances and Corporate Strategy
Session 230: Ownership Determinants and Consequences
Mon: 17:15 – 18:30
Session 194: CEOs and Top Management Teams
Session 197: Diversity, Identity, and Corporate Governance
Session 233: Top Executives and Directors in Organizational Dynamics
Tue: 10:00 – 11:15
Session 199: Executive Compensation
Session 200: Social Psychological Perspectives of CEOs
Tue: 11:30 – 12:45
Session 195: Competitive Dynamics of Business Groups
Session 234: Constraints and Catalysts on Corporate Growth
Tue: 14:30 – 15:45
Session 226: Relatedness, Dominant Logics, and Other Diversification Logics
Session 231: Institutions and Agents
Wed: 10:00 – 11:15
Session 227: Corporate Strategy & Diversification
Session 232: Stakeholders in the Corporate Governance Equation
Wed: 11:30 – 12:45
Session 196: Behavioral Perspectives on Boards of Directors
Session 225: Acquisitions and Corporate Strategy


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Washington DC