Do strategic alliances create value?

The Impact of Collaborative Agreement on Firms' Performances: The Case of the IT Industry in the 1990s1

“…manufacturers. This result validates the results obtained by Chan et al (1997) and Vanhaverbeke and Duysters (1997). These authors show that in sales partnerships the outcome is positive mainly when partner industries differ.…”

“…Based on 345 alliances in the I.T. industry, Chan et al (1997) show that non equity alliances add value to the stocks in the few days after announcement. Baum and Oliver (1991) and Mitchell and Singh (1996) treated firm mortality as the performance variable and showed that alliances raised organizational survival rates.…”

“…Collaborative agreements might also have different impacts in function of the partner industry. Chan et al (1997) and Vanhaverbeke and Duysters (1997) show that partner industries influence the outcome of partnerships differently according to the agreement content: in technology agreements, the outcome is only positive when partners are from the same industry, while in sales it is just the opposite; the outcome is only positive when partner industries differ. Some authors compared the impact of different forms of partnerships on firms' financial performance and identified major differences between informal alliances and more formal forms of partnerships (alliances with equity participation, joint-ventures, mergers and acquisitions).…”

The role of incentives and communication in strategic alliances: an experimental investigation

“…Strategic alliances have the potential to create economic value (Gulati and Singh, 1998;McEvily and Zaheer, 1999) and, on average, empirical evidence corroborates this view (Chan et al, 1997;Sarkar, Echambadi, and Harrison, 2001). However, approximately half of all strategic alliances fail (Kale, Dyer, and Singh, 2002).…”

Company Investment Announcements and the Market Value of the Firm

“…Fröhls et al (1998) similarly found joint ventures to be particularly beneficial when entering emerging markets, which may be riskier (for US companies) than transactions in other industrialised markets. Analysing strategic alliances rather than joint ventures per se, Chan et al (1997) found higher wealth creation where there was a transfer or pooling of technical knowledge.…”