Resource relatedness and the mode of entry into new businesses: Internal resource accumulation vs. access by collaborative arrangement

Speckbacher, Gerhard; Neumann, Kerstin; Hoffmann, Werner H.

doi:10.1002/smj.2305

Cited by 32 publications

(23 citation statements)

References 69 publications

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“…Regarding financial indicators, however, sales revenues from innovation represents a more direct expression of the commercial success of an innovation (Leiponen and Helfat, ). Furthermore, while extant definitions of relatedness are based on the proximity or overlap in the contents of the knowledge bases (Makri et al, ), our definition is based on inter‐business coherence (Teece et al, ), which is consistent with a resource‐based notion of relatedness (Speckbacher et al, ). Specifically, we use a general index of industry relatedness, which captures the connections between the resource configurations that matter in different industries, regardless of their specific contents (Bryce and Winter, ).…”

Section: Discussionmentioning

confidence: 94%

In and Out of Balance: Industry Relatedness, Learning Capabilities and Post‐Acquisition Innovative Performance

Cefis

Marsili

Rigamonti

2019

J Management Studies

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The existence of an inverted U‐shaped effect of the relatedness between acquirer and acquired firm on the innovative performance subsequent to an acquisition is normally regarded as indicative of the existence of a trade‐off between exploration and exploitation in external innovation search. We argue that acquirers endowed with heterogeneous learning capabilities can alter the shape of the trade‐off to their favour. In particular, we focus on a notion of industry relatedness that captures the coherence between the domains of operation of the acquirer and the acquired firm. Using a longitudinal dataset of 1,736 domestic acquisitions in the Netherlands, we show that the heterogeneous learning capabilities of the acquirers alter the shape of the inverted‐U relationship, according to first‐ and second‐order moderating effects. Our results confirm that learning capabilities by internal R&D and by acquisition experience both improve what acquirers can achieve in innovative performance when industry relatedness is at the point of balance between exploration and exploitation. In contrast, they have opposite implications on the potential losses in innovative performance when industry relatedness is outside the point of balance: internal R&D increases the tolerance of the trade‐off, smoothing out potential innovation losses, whereas acquisition experience reduces it.

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Section: Discussionmentioning

confidence: 94%

In and Out of Balance: Industry Relatedness, Learning Capabilities and Post‐Acquisition Innovative Performance

Cefis

Marsili

Rigamonti

2019

J Management Studies

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“…Taken together, the integrative framework is useful not only for research on competition and cooperation (Doz, ; Dyer & Singh, ; Reuer et al, ; Speckbacher, Neumann, & Hoffmann, ), but also for studying resource reconfigurations and dynamic capabilities (Lavie, ; Teece et al, ), because it addresses when, why, and how firms access, build, and develop new resources while protecting old ones (Capron & Mitchell, ). Moreover, we contribute to the relatively sparse literature on intra‐industry cooperation and consortia (Browning et al, ; Doz, ; Doz et al, ; Ring & Van de Ven, ) and on the antecedents to and dynamics in horizontal alliances (Baum et al, ; Lavie, ; Speckbacher et al , ). Different cooperative strategies might complement one another when incumbents face different types of technological changes and need to develop or protect different capabilities (Helfat et al, ; Lavie, ; Lavie, ).…”

Section: Discussionmentioning

confidence: 99%

Discontinuities, competition, and cooperation: Coopetitive dynamics between incumbents and entrants

Cozzolino

Rothaermel

2018

Strategic Management Journal

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Research Summary: We advance an integrative model in which distinct types of technological discontinuities (core‐knowledge vs. complementary‐asset) are combined with different appropriability regimes (strong vs. weak) to predict competitive and cooperative dynamics between incumbents and entrants. We posit that incumbents ally with entrants following a core‐knowledge discontinuity when the appropriability regime is strong. When the appropriability regime is weak, incumbents are more likely to acquire entrants. We submit that the additional consideration of complementary‐asset discontinuities reveals a more integrated theoretical model of competition and cooperation between incumbents and entrants. In particular, incumbents tend to cooperate among themselves following complementary‐asset discontinuities, although we highlight theoretical nuances due to different appropriability regimes. We provide falsifiable propositions, and introduce contingencies such as firm‐level heterogeneity and time dynamics. Managerial Summary: Interfirm cooperation is one possible avenue for existing firms to address the challenge of responding to discontinuous technological changes. What is not clear, however, is who should the incumbent ally with: other incumbents or new entrants? We provide an integrative framework to help managers to decide when to cooperate with competitors and when to cooperate with new entrants. When the core knowledge of incumbent firms is made obsolete by technological advances and intellectual property is fairly well protected, managers of existing firms should search out collaboration with new entrants. If intellectual property protection is weak, managers of incumbents firms are better off acquiring new entrants. When the downstream complementary resources such manufacturing, distribution, and sales are replaced by radically new technologies, then incumbents best option is cooperate with other incumbents in order to compete against new entrants.

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“…Whilst much of the extant entry mode research has tended to focus on MNEs (e.g., Brouthers & Hennart, 2007;Canabal & White, 2008;Morschett, Schramm-Klein, & Swoboda, 2010;Slangen & Hennart, 2007), nevertheless, with the rapid expansion of SMEs in general and BGs and INVs into foreign markets, there is a need to build upon existing research into how SMEs enter foreign markets (Burgel & Murray, 2000;Jones, 1999;Zacharakis, 1997). In particular, there is a need to recognise how the collaborative entry mode (Gomes et al, 2011;Liu, 2017) has several advantages for INVs, including the opportunity for the firm to gain access to the required resources (Speckbacher et al, 2015) whilst being able, particularly important in the case of knowledge-intensive technology based INVs, to protect their knowledge (Maekelburger et al, 2012).…”

Section: International Expansion Through Various Entry Modesmentioning

confidence: 99%

International new ventures market expansion through collaborative entry modes

Puthusserry

Khan

Rodgers

2018

IMR

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The purpose of this article is to examine the role that different collaborative entry modes play in how international new ventures expand into international markets. Methodology/Approach: The article's arguments are based on the international new ventures and social network literatures. In order to investigate the entry modes adopted by British and Indian SMEs information and communication technology (ICTs) firms into each other markets, the paper outlines the results of qualitative semi-structured interviews with the key decision-makers of ten British and ten Indian ICT firms. Findings: The findings contribute to the relatively under-researched area of how international new ventures (INVs) enter foreign markets through collaborative entry mode. The findings suggest that INVs utilize both equity and non-equity modes of collaboration to expand their international operations. The findings also indicate that financial and nonfinancial resources always limit the market expansion and internationalization of such companies. Against this background, the INVs rely on building collaboration as one of the safest methods for foreign market expansion and successful internationalization. The collaborative entry mode is enhanced by entrepreneurs' prior experience, social ties and knowledge of the foreign market. Research limitations/implications: Set against the backdrop of an ever-increasing trend of internationalization of SMEs, the article offers important implications for understanding the conditions and factors behind the choice of collaborative and non-collaborative entry modes by international new ventures in particular and SMEs more broadly.

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Resource relatedness and the mode of entry into new businesses: Internal resource accumulation vs. access by collaborative arrangement

Cited by 32 publications

References 69 publications

In and Out of Balance: Industry Relatedness, Learning Capabilities and Post‐Acquisition Innovative Performance

In and Out of Balance: Industry Relatedness, Learning Capabilities and Post‐Acquisition Innovative Performance

Discontinuities, competition, and cooperation: Coopetitive dynamics between incumbents and entrants

International new ventures market expansion through collaborative entry modes

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