The intra‐alliance division of value created through collaboration

Adegbesan, J. Adetunji; Higgins, Matthew J.

doi:10.1002/smj.872

Cited by 183 publications

(138 citation statements)

References 72 publications

(150 reference statements)

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“…Paraphrasing Adegbesan & Higgins (2011), firms may choose a smaller pie if they can get a larger slice.…”

Section: Page 27 Of 44mentioning

confidence: 99%

Friends and Profits Don’t Mix: The Performance Implications of Repeated Partnerships

Holloway

Parmigiani²

2016

AMJ

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Firms use repeated partnerships to gain the benefits of shared experience such as improved coordination, collaboration, and adaptation. However, there are downsides to partnering repeatedly, including vulnerability to opportunistic partners upon whom the firm becomes dependent, muted efficiency incentives, and overlooking better options. This paper unpacks the effects of repeated partnerships by investigating their impact on two distinct types of performance: revenue and profitability. To understand repeated partnerships, we analyze a unique dataset of 580 partnerships that completed 144 bridge construction projects. Controlling for project attributes that affect the level of outsourcing, we posit that a greater proportion of repeated partners and deeper relationships with these partners will result in greater revenue through winning bids, but that the prime contractor will not necessarily garner higher profits. We find support for these predictions, highlighting the trade-offs of repeated partnerships. ABSTRACTFirms use repeated partnerships to gain the benefits of shared experience such as improved coordination, collaboration, and adaptation. However, there are downsides to partnering repeatedly, including vulnerability to opportunistic partners upon whom the firm becomes dependent, muted efficiency incentives, and overlooking better options. This paper unpacks the effects of repeated partnerships by investigating their impact on two distinct types of performance: revenue and profitability. To understand repeated partnerships, we analyze a unique dataset of 580 partnerships that completed 144 bridge construction projects. Controlling for project attributes that affect the level of outsourcing, we posit that a greater proportion of repeated partners and deeper relationships with these partners will result in greater revenue through winning bids, but that the prime contractor will not necessarily garner higher profits. We find support for these predictions, highlighting the trade-offs of repeated partnerships.

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“…Paraphrasing Adegbesan & Higgins (2011), firms may choose a smaller pie if they can get a larger slice.…”

Section: Page 27 Of 44mentioning

confidence: 99%

Friends and Profits Don’t Mix: The Performance Implications of Repeated Partnerships

Holloway

Parmigiani²

2016

AMJ

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“…The Recap IQ Series database contains details of pharmaceutical industry alliances including partners, agreement date, alliance type, the drug stage when the alliance was announced (if applicable), and descriptive information about the targeted technology. The Recap IQ Series database (or its predecessors under different ownership) has been used in other pharmaceutical alliance studies (recent examples include Adegbesan and Higgins, ; Muthusamy and White, ; Rothaermel and Boeker, ; Xu, Wu, and Cavusgil, ; Yang, Zheng, and Zhao, ). Firm‐level sales revenue data were obtained from Compustat.…”

Section: Methodsmentioning

confidence: 99%

Stock Market Response to Strategic Technical Alliances between Drug and Biotechnology Firms

Liu¹,

Pu²,

Schramm³

2015

J of Product Innov Manag

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Traditionally, firms in the pharmaceutical industry have depended on their internal research and development (R&D) capabilities to maintain a productive new product pipeline. During the past two decades, however, the industry's pipeline productivity has decreased compromising the industry's ability to meet shareholder expectations. As a strategy to invigorate pipeline productivity, and impact financial performance, pharmaceutical firms have increased utilization of strategic technical alliances. Earlier research shows that the degree of financial impact resulting from strategic technical alliances varies in terms of partnership type and differences between client and partner firms. This research studies strategic technical alliances between pharmaceutical and biotechnology firms from 1985 to 2012. Event study methodology is used to determine the relationship between stock market response to alliance announcements, measured as cumulative abnormal returns, and factors representing the absorptive capacity of the pharmaceutical firms in the sample. Then, variables indicating the development stage of the drugs included in the alliances are added to assess the effect of project risk on the market response. The study finds that, in general, the stock market responds in a positive manner to strategic technical alliances in the pharmaceutical industry reflecting the market's immediate response, and expectations of future firm value, resulting from the alliance. The degree of the market's response varies in terms of the client firms' absorptive capacity with new product introductions being the strongest driver. The market responds similarly to alliances across different drug development stages, however, a stronger response is observed in preclinical and extension stages. Practitioner Points• Entering strategic technical alliances to help reverse declines in pipeline productivity increases shareholder value. • In general, the stock market response to strategic technical alliances is stronger for pharmaceutical firms with higher levels of R&D activities. • The stock market values a strong new drug pipeline as a hedge against the high new drug failure rate, which is characteristic of the pharmaceutical industry.

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“…A resultante de valor criado nos processos de coespecialização e complementaridade na combinação de recursos entre parceiros é superior à soma dos recursos individualmente aportados pelas partes (Adegbesan & Higgins, 2011;Lippman & Rumelt, 2003a). Seja o valor de um recurso v(R 1 ) e outro recurso v(R 2 ), a união dos recursos traz um excedente (S) à simples soma dos mesmos.…”

Section: Criação De Valorunclassified

“…Na medida em que parcerias geram dependências, estas passam a ser vistas como possíveis entraves e potencial problema de holdup para a empresa. A não existência de instrumentos para controle do direito de propriedade impõem limites à apropriação do valor criado (Adegbesan & Higgins, 2011). Por outro lado, a partilha desse valor, mantendo um excedente para o fornecedor, pode construir caminhos para a manutenção da vantagem competitiva.…”

Section: O Benefício Do Fornecedor: Benefícios Defasados E Ganhos Opeunclassified

“…Vantagem competitiva se refere à criação de valor. Desempenho financeiro decorre do processo de distribuição de valor entre as partes, o que não é um processo simples (Adegbesan & Higgins, 2011) e resulta diferentes aspectos de desempenho. O benefício direto da empresa pode ser evidenciado por medidas de lucratividade ou rentabilidade, mas as outras duas parcelas também afetam o desempenho da empresa.…”

Section: Conclusõesunclassified

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Vantagem competitiva e sua relação com o desempenho: uma abordagem baseada em valor

Brito¹,

Brito²

2012

Rev. adm. contemp.

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Este ensaio teórico discute o conceito de vantagem competitiva identificando os desafios da área de estratégia em obter uma definição precisa, operacionalizável e que relacione o conceito com o desempenho das empresas. Inicia-se pela consolidação e pela análise dos principais trabalhos na área, em que explicitamos as lacunas e a falta de diferenciação entre os construtos de vantagem competitiva e desempenho. O artigo traz uma definição baseada na criação de valor superior, sendo esse delimitado pela diferença entre a disposição a pagar dos clientes e o custo de oportunidade dos fornecedores. Tal definição sugere que o valor criado pode ser divido em três partes: o valor apropriado pela empresa, o excedente dos clientes e o excedente dos fornecedores. Cada uma das partes traz implicações para o desempenho da empresa, sendo que o valor apropriado revela o lucro desta, e o valor não apropriado pode se traduzir em crescimento e em desempenho operacional. No tocante à operacionalização da vantagem competitiva, discutimos aspectos relativos à comparação entre empresas e à temporalidade de observação do evento. Como decorrências desse ensaio, está o estudo da lógica causal entre vantagem competitiva e desempenho, e a constatação de que o estudo da vantagem competitiva por meio de variável única é impreciso e não mede a extensão dos resultados das decisões estratégicas.

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The intra‐alliance division of value created through collaboration

Cited by 183 publications

References 72 publications

Friends and Profits Don’t Mix: The Performance Implications of Repeated Partnerships

Friends and Profits Don’t Mix: The Performance Implications of Repeated Partnerships

Stock Market Response to Strategic Technical Alliances between Drug and Biotechnology Firms

Vantagem competitiva e sua relação com o desempenho: uma abordagem baseada em valor

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