A behavioral theory of alliance portfolio reconfiguration: Evidence from pharmaceutical biotechnology

Abstract

Research Summary: Extant research suggests that firms rationally evaluate external and/or internal contingencies when deciding how to reconfigure their alliance portfolios.We advance a behavioral perspective which assumes that managers are boundedly rational and thus rely on behavioral heuristics when making alliance portfolio reconfiguration decisions. In panel data on U.S.-listed biotechnology firms, we find that below-aspiration performance motivates a firm to form alliances with novel partners within the resource scope of its existing alliance portfolio. This effect is weakened by equity ties with existing partners and strengthened by firm-specific uncertainty. Conversely, above-aspiration performance leads to

The invention performance implications of coopetition: How technological, geographical, and product market overlaps shape learning and competitive tension in R&D alliances

“…As a firm's accumulated experience in managing alliances may contribute to its ability to extract benefits from an R&D alliance, we also controlled for firm alliance experience by counting the number of alliances a firm had formed in the 5 years preceding the alliance (Sampson, 2005; Stuart, 2000). In addition, we counted a firm's total number of prior alliances with the partner ( firm prior ties )—a greater number of prior alliances may enhance the relational assets in a relationship but it also indicates less novelty of the existing partner's knowledge in the current relationship (e.g., Dyer, Singh, & Hesterly, 2018; Kavusan & Frankort, 2019).…”

Supply chain collaboration for sustainability: a qualitative investigation of food supply chains in Brazil

“…Johnson et al (2018) used the framework to conceptually explain how social capital can create strategic value for nongovernmental organizations (NGOs) that seek to improve the environmental performance of companies by way of collaboration. Kavusan and Frankort (2019) used the receptivity and richness mechanisms in developing and testing a behavioral theory of alliance portfolio reconfiguration. Alinaghian and Razmdoost (2018) used the rarity mechanism to explore how network resource attributes may affect network-oriented dynamic capability clusters.…”

Digital Machines, Space, and Time: Towards a Behavioral Perspective of Flexible Manufacturing

“…First and foremost, drawing from previous studies in operations and innovation management based on a behavioral perspective (e.g., Bendoly et al, 2006, 2010; Colarelli O’Connor, 2008; Croson et al, 2013; Gino and Pisano, 2008; Kavusan and Frankort, 2019; Michael and Palandjian, 2004), this study provides a novel understanding of the relationship between varying levels of manufacturing flexibility provided by digital machines on the production floor and the subjective dimensions of human interaction related to space and time, addressing an understudied relationship in the literature. In doing so, it extends and complements the traditional and extensive stream of works on manufacturing flexibility (see among others, Koste and Malhotra, 1999; Slack, 1987; Zhang et al, 2003) by providing insights on the interaction between humans and machines.…”

“…This article posits that to understand the impact of digital technologies on individuals’ manufacturing routines, the adoption of a behavioral perspective is necessary (Argote and Greve, 2007; Cyert and March, 1963; Gavetti, Greve, Levinthal, and Ocasio, 2012; Kavusan and Frankort, 2019). Thus, focusing on organizational routines and cognition in the contexts of the adoption of digital manufacturing can help elucidate why organizations are still facing challenges in effectively integrating flexible technologies, and in turn, often failing to fulfill the expectations of superior business performance and a sustainable competitive advantage.…”