Session Details: Session 1055

Governing Knowledge in Interorganizational Relationships

Track A

Date: Tuesday, October 14, 2008

 

Time: 11:15 – 12:30

Common Ground

Room: Salon 6


Facilitator:
Africa Ariño, IESE Business School

Title: Do Plural Forms Enhance the Transfer of Knowledge for Firms

Authors

  • Bertrand Quelin, HEC-Paris
  • Francois Duhamel, University of the Americas Puebla

Abstract: Can companies benefit from the simultaneous use of different organizational forms for the same activity? Analyzing the benefits of plural forms still represents a challenge for the transaction cost theory, which stands as the more commonly used theory to account for the variety of governance modes. In order to explain the phenomenon of plural forms, we propose to develop an integrated approach, completing transaction cost theory with the resource-based view of the firm. In this theoretical article, we examine the conditions of such a common approach. We focus on the dimensions of governance modes, rather than the attributes of the underlying transactions. We argue that plural forms enhance particularly the transfer of both explicit and tacit knowledge between firms, by providing suitable incentives and accurate controls, that allow firms to achieve this type of transfer at least as well as between firms’ sub-units.

Title: Opportunism, Knowledge, and the Propensity to Franchise

Authors

  • Jérôme Barthelemy, ESSEC Business School

Abstract: In this paper, I examine the direct and joint impact of opportunism and knowledge considerations on the propensity to franchise. Predictions derived from agency theory and the knowledge-based view of the firm are tested on a novel sample of French franchise chains. Results indicate that knowledge considerations: (1) explain variance in the decision to franchise or company-own outlets beyond what is explained by opportunism considerations; (2) moderate the relationship between opportunism considerations and the propensity to franchise.

Title: Relational Mechanisms, Formal Contracts, and Local Knowledge Acquisition by International Subsidiaries

Authors

  • Julie Li, City University of Hong Kong
  • Kevin Zhou, University of Hong Kong
  • Laura Poppo, University of Kansas

Abstract: Using survey data from 168 foreign subsidiaries operating in China, we examine the impact of relational and contractual mechanisms on foreign subsidiaries’ acquisition of tacit and explicit local knowledge from their suppliers. We hypothesize that supplier ties are associated with greater levels of explicit knowledge acquisition and that shared goals positively affect the acquisition of both explicit and tacit knowledge, whereas trust has a stronger impact on the acquisition of tacit than explicit knowledge. Moreover, formal contracts improve the acquisition of explicit knowledge. Further, we explore whether the joint use of contracts and relational mechanisms has a synergic effect on the acquisition of both tacit and explicit knowledge. Our results inform foreign subsidiaries hoping to acquire local knowledge in host countries.

Title: Speed of Integration - The Underexplored Factor In Cross-Border Mergers and Acquisitions

Authors

  • Omri Morag, University of Pécs
  • Shlomo Yedidia Tarba, University of Birmingham
  • Amos Raviv, Israeli Center of Management Studies

Abstract: The corporate strategy nowadays is focused firmly on M&A as a tool to foster future growth and create sustainable value. As a result, companies are aggressively seeking and buying compatible and synergistic businesses to bolster core strengths. The need to move rapidly is indeed essential throughout the M&A deal consummation, but speed has to be balanced against other considerations. With respect to some issues, it’s advisable to move deliberately, while regarding others, sometimes the action has to be taken in a more clear-cut manner. In the proposed model we posit that the decision on the speed of performance of the integration depends on the combination of several factors: relatedness, synergy potential, acquirer's previous experience, corporate and national culture differences between merging firms.

Title: The Age of A Focal Firm, Alliance Experience, and Firm Performance: An Empirical Study in Taiwan

Authors

  • Pang-hsiang Yu, National Chengchi University
  • Kuo-Feng Huang, National Chengchi University

Abstract: This paper examines the relationship between strategic alliance and firm performance from the perspectives of the learning and resource-based theories. By using content analysis, we codified the newspaper regarding alliance activities in the Taiwan’s electronic industry between 1999 and 2005. The regression model was employed to test the developed hypotheses. Our results show that the alliance experience and age of the focal firm both are positively associated with firm performance. And alliance experience effect is moderated by the age of the focal firm. Our study can explain how to combine the learning theory and resource-based theory in an empirical study.

Title: The Influence of Firm's Knowledge Structure on Alliance Termination

Authors

  • Akie Iriyama, Waseda University
  • Turanay Caner, St. John's University

Abstract: In this study we examine how firms’ knowledge structure affects their alliance termination decisions. We focus on knowledge breadth and depth as two dimensions of firms’ knowledge structure. We theoretically posit that the relationship between firms’ knowledge structure and alliance termination decisions is based on firms’ alliance portfolio orientation and individual alliance orientation. When firms hold alliance portfolio orientation, those with broad knowledge structure (deep knowledge structure) are less (more) likely to terminate their alliances. This relationship is reversed when firms hold individual alliance orientation. We test our hypotheses using alliance and patent citation data of U.S. biopharmaceutical firms. The tentative results support our hypotheses. This study is expected to have several important contributions to the exploration-exploitation and alliance literatures.

All Sessions in Track A...

Mon: 11:15 – 12:30
Session 1036: Knowledge and Learning
Mon: 15:30 – 16:45
Session 1041: Knowledge, Collaboration, and Performance
Session 1061: Inter-Organizational Knowledge Transfer
Mon: 17:00 – 18:15
Session 1040: Knowledge Transfer and Diffusion
Session 1042: Capabilities, Value Creation, and Performance
Tue: 11:15 – 12:30
Session 1035: Strategic Dynamics in Industry Architectures: The Challenges of Knowledge Integration
Session 1055: Governing Knowledge in Interorganizational Relationships
Tue: 14:30 – 15:45
Session 1039: Knowledge and Governance
Session 1045: Capabilities and Governance
Session 1056: Discussing Approaches on How Knowledge Matters in Organizations
Wed: 10:00 – 11:15
Session 1038: Knowledge and Networks
Session 1057: Knowledge as a Driver of Innovation, Learning and Competence-Building
Wed: 11:30 – 12:45
Session 1044: Technology and Performance
Session 1046: Knowledge Across Boundaries
Session 1058: Knowledge Strategies: Collaboration and Governance


Strategic Management Society

Cologne Conference