Session Details: Session 1089

Make, Ally or Buy

Track F

Date: Monday, October 13, 2008

 

Time: 11:15 – 12:30

Paper

Room: Salon 21


Session Chair:
Asli Musaoglu Arikan, Kent State University

Title: Acquisition or Alliance: An Integrative Framework of Firm Size and Industry Evolution Stages

Authors

  • Lihong Qian, Portland State University
  • Rajshree Agarwal, University of Maryland
  • Glenn Hoetker, Arizona State University

Abstract: This study examines issues about how environmental uncertainty impacts firm decisions to undertake alliances and acquisitions as modes for access to external resources, and the contingency role of firm size on this relationship. In particular, the authors model variations in environmental uncertainty by examining the different industry evolution stages and examine the changing motivations of firms’ choice of acquisition or alliance over the different industry life stages. Using a unique longitudinal database developed for the various biofuels markets in the US, the authors systematically incorporate the industry evolution perspective to the study of alliance and acquisition activities undertaken by firms as they compete in dynamic markets. Further, they investigate if there are significant differences in resource development strategies across large and small firms.

Title: Growth through Acquisition and/or Alliance Programs: Performance Effects of Specialized versus Mixed Corporate Strategies

Authors

  • Asli Musaoglu Arikan, Kent State University

Abstract: This study investigates capability building at the corporate level over time starting with the firm’s IPO. Firms exhibit heterogeneity and exclusivity in their corporate strategy programs within/across industries during 1988-2001. Initial findings show that the 3595 firms pursue different corporate strategy programs: 978 engage in both alliances and M&As; 450 follow only alliances; 1218 follow only M&As; 949 engaged in neither alliances not M&As. Firms with only M&A corporate strategy programs on average have the highest operating ROA and ROS followed by the firms that pursue a mixed program. Whereas, firms that only form alliances have the highest annual R&D expenses scaled by cost of goods sold. There seems to be clear distinctions among firms that pursue different corporate strategy programs which warrant further investigation.

Title: Horizontal Alliances as an Alternative to Autonomous Production: Product Expansion Modes in the Worldwide Aircraft Industry

Authors

  • Bernard Garrette, HEC-Paris
  • Xavier Castaner, University of Lausanne
  • Pierre Dussauge, HEC-Paris

Abstract: This paper combines production and exchange aspects to investigate the make or ally choice. The paper examines under what conditions a firm will choose to undertake product expansion in collaboration with another industry incumbent rather than on its own. We argue that a firm is more likely to launch a new product in a given business through a horizontal alliance when its resource endowment is more limited, the resource requirements of the project are greater, when there is a mismatch between resource endowment and requirement and when the firm has a collaborative competence which allows it to better cope with inter-organizational concerns. We find support in a sample of 310 new aircraft developments launched either as collaborative or single-firm projects between 1945 and 2000.

Title: What Makes a Strategic Alliance? An Organizational Analysis

Authors

  • Sascha Albers, University of Southern Denmark
  • Edward Zajac, Northwestern University

Abstract: While strategic alliances are typically conceptualized in legal or contractual terms (e.g., market-hierarchy or equity-non equity continua), we suggest that there is unexplored value to researchers and practitioners in also viewing alliances in organizational terms. In this study, we offer a foundational, contingency theoretic framework that conceptualizes strategic alliances as a distinct organizational form. Key design parameters, contingency dimensions and their interplay are assessed. Contrasting case studies serve to illustrate the descriptive and explanatory value of our framework.

All Sessions in Track F...

Mon: 11:15 – 12:30
Session 1089: Make, Ally or Buy
Session 1096: Executive Compensation
Mon: 15:30 – 16:45
Session 1086: Alternative Views of Value Creation
Session 1090: CEO Pay
Session 1107: Executive and External Forces in Strategy
Mon: 17:00 – 18:15
Session 1091: Impression Management
Session 1098: Social Networks
Tue: 11:15 – 12:30
Session 1093: Succesion and Team Dynamics
Session 1103: Social and Human Capital
Tue: 14:30 – 15:45
Session 1095: Diversification
Session 1105: Governance Perspectives
Wed: 10:00 – 11:15
Session 1104: Managing Alliance Relationships
Session 1106: New Corporate Strategy Perspectives
Wed: 11:30 – 12:45
Session 1088: Acquisitive Growth Strategies
Session 1092: Dynamic Strategies and Resources


Strategic Management Society

Cologne Conference