Alliance networks and firm performance: The impact of repeated partnerships

Abstract

A phenomenon that has become the focus of recent research on interorganizational alliance network growth is that firms often enter into repeated relationships with prior partners. The implications of this tendency on corporate performance, however, are not well understood. From transaction cost and network perspectives, I test competing hypotheses on a large sample of multinational corporations. My results indicate clearly that firms not only often do enter into repeated equity‐based partnerships but also that those with a greater propensity to do so experience inferior economic performance. Further, statistical tests indicate that the negative effect of repeated partnerships on performance is particularly strong in environments of greater technological uncertainty. Copyright © 2007 John Wiley & Sons, Ltd.

The impact of partner diversity within multiparty international joint ventures

“…Adopting the RBV logic, we suggest that increasing differences in partners' national backgrounds negatively affects MPIJV dissolution as these differences reduce the likelihood that partner firms' resources and capabilities are redundant (Goerzen, 2007). Non-redundant resources and capabilities are more likely to lead to the creation of valuable, rare, and non-inimitable advantages than are overlapping or redundant resources and capabilities which increases a IJV's competitiveness and value to partners making them less likely to terminate the a IJV.…”

“…Similarly, research on alliance portfolios suggests that firms with diverse alliance partners have better access to nonredundant information and resources (e.g., Bruyaka & Durand, 2012;Goerzen, 2007). This access to diverse and non-redundant resources in turn increases firms' competitiveness, performance and, thus, reduces the likelihood of dissolution (Silverman & Baum, 2002).…”

“…One approach builds on the Resource-based View of the Firm (RBV) and highlights the positive effects of heterogeneous resources assembled through an increasing number of diverse partners within international alliances (Beamish & Kachra, 2004;Goerzen, 2007;Goerzen & Beamish, 2005). In contrast, a second stream of research from a Transaction Cost Economics perspective (TCE) considers the transaction costs associated with coordinating multiple parties and expects alliance performance to decrease with a rising number of partners (Hennart & Zeng, 2005).…”

The Two Facets of Collaboration: Cooperation and Coordination in Strategic Alliances

“…But inter-organizational learning processes do not always lead to better coordination (Goerzen, 2007;Hoang & Rothaermel, 2005). Mutual learning may prove to be maladaptive if locks partners into competency traps and renders them unwilling to abandon established but suboptimal inter-organizational processes and routines (Levitt & March, 1988).…”

Governança tecnológica e cooperabilidade nas multinacionais brasileiras

“…• A coordenação do portfólio de parcerias focadas em inovação (Schilke & Goerzen, 2010;Wassmer, 2010) para alavancar a interdependência entre as parcerias individuais de uma empresa; evitar ações duplicadas (Goerzen, 2007;Koka & Prescott, 2008); criar uma base de experiência mais substancial para acelerar o aprendizado sobre como projetar e gerenciar parcerias focadas em inovação; acessar simultaneamente uma ampla gama de recursos de parceiros diferentes como um meio eficaz para melhorar o estoque de recursos e capacidades (Bruneel, Este & Salter, 2010;Hoffmann, 2007;) e para ampliar as possibilidades de formação de parcerias adicionais (Goerzen, 2007;Raisch & Birkinshaw, 2008;Yamakawa, Yang & John, 2011). …”