When do firms enter a repeated partnership? The effect of contract terms and relative partner characteristics

Abstract

Purpose The purpose of this paper is to understand the mechanisms of partner selection from the transaction cost economics’ viewpoint. This paper reveals that a firm’s choice to initiate a new alliance with a new partner or form a repeated alliance with an existing partner depends on contract terms and the relative characteristics of partners. Design/methodology/approach The authors examine 555 alliances in high-tech industries from 2001 to 2009, which the authors collected from secondary sources, including the Securities Data Company Platinum and Compustat databases. The authors use a logit model to reveal the effect of contract terms and relative partner characteristics on repeated partnership. Findings The results show that repeated partnership is less likely to be combined with equity sharing. Repeated partnership is also negatively associated with the functional scope of a new alliance. Finally, a firm is more likely to enter a repeated partnership when its partner is from a different country. Originality/value This research provides new insights into how the choice of an alliance partner depends on contract terms and the relative characteristics of partners. Identifying factors associated with partner selection helps us understand the fundamental mechanisms of initiating a new alliance. It allows focal firms to foresee the behavior of their peers or competitors in certain circumstances and thus provides important insights for developing corresponding strategies more effectively.

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“…Num estudo muito recente, Donovan & Stoian (2018) reforçam também a importância do papel das parcerias em contexto internacional, sobretudo no acesso das pequenas e médias empresas às cadeias globais de valor. No atual contexto económico, as motivações para a realização de parcerias estão intimamente ligadas aos termos específicos de cada contrato e às características intrínsecas de cada parceiro (Oh & Lee, 2017). Oh & Lee (2017) demonstram que a possibilidade de renovação de parcerias aumenta quando o parceiro é de um país diferente.…”

“…No atual contexto económico, as motivações para a realização de parcerias estão intimamente ligadas aos termos específicos de cada contrato e às características intrínsecas de cada parceiro (Oh & Lee, 2017). Oh & Lee (2017) demonstram que a possibilidade de renovação de parcerias aumenta quando o parceiro é de um país diferente. Kotler et al (2005) considera as parcerias uma ação privilegiada de marketing relacional, sendo o marketing relacional uma forma de criar e manter valor, através de relacionamentos fortes com clientes e/ou outros stakeholders, e assim, garantir ou reforçar a sustentabilidade da empresa ou negócio.…”