This study focuses on the role of intrinsic speed capabilities, which refer to the ability to execute investment projects faster than competitors, in the attractiveness and selection of alliance partners. We predict that intrinsically faster firms have a higher likelihood of being selected as alliance partners due to the potential of accelerating the realization of future revenue streams of an alliance project as well as of preempting slower competitors. We also expect that intrinsic speed capabilities substitute for deficiencies in alliance experience and firm innovativeness. Using data on construction projects in the global Liquefied Natural Gas industry, we find empirical support for our theoretical expectations. Our results suggest that firm speed plays an important role in alliance partner selection and has the potential to facilitate the generation of future growth options for firms due to greater partner attractiveness in the market for alliance partners.

This study empirically examines the role of intrinsic speed capabilities, which refer to the ability to execute investment projects faster than competitors, in shaping corporations’ choice of alliances versus autonomous project development. Our basic premise is that firms lacking intrinsic speed capabilities (i.e., slow firms) are more likely to turn to alliances to supplement their capability deficiency. However, we expect that the ability of slow firms to partner with fast firms hinges on the former’s possession of complementary supporting assets. Our empirical analyses furnish evidence supporting these ideas using data from the global liquefied natural gas industry.