Interpartner Differences and Governance Mode Dilemma: The Role of Alliance Scope
Journal Title: BAR: Brazilian Administration Review - Year 2016, Vol 13, Issue 3
Abstract
It is generally recognized that the governance structure of an alliance, equity versus nonequity, is an important strategic choice. Since an alliance teams up companies that are inevitably divergent in upstream resource endowment and/or downstream market coverage, it is necessary to select an appropriate governance form to manage the interpartner differences and thus facilitate cooperation. Nevertheless, prior studies have suggested conflicting governance modes despite their adherence to the rationale of transaction cost economics. To address this gap in extant literature, the current study takes into account the moderation of alliance scope in the interfirm difference-governance choice linkage. In sum, this paper argues that, to determine a suitable governance structure, there is a need to concurrently examine how different the partnering firms are from each other and what range the collective activities cover. Hierarchical logistic regression analysis was used to test hypotheses in a sample of 125 bilateral alliances. The empirical findings indicate that nonequity modes will be preferred for the alliances that have less interfirm resource disparity and narrower alliance scopes, while equity-based forms will be chosen for the alliances that have less interfirm market divergence and narrower alliance scopes.
Authors and Affiliations
Tseng, Chiung-Hui
Environmental Management, Strategic Practices and Praxis: A Study in Santa Catarina Industrial Companies
This article analyzed the correlation between strategic praxis related to environmental management in Santa Catarina industrial companies and their strategic practices. This quantitative study is based on the theoretica...
A Constructionist Approach for the Study of Strategy as Social Practice
The goal of this paper is to present an analytical perspective of strategy as social practice in organizations by the articulation of proposals by Foucault, Certeau and Moscovici on social dynamics. To accomplish its in...
Factors Affecting Mobile Users’ Switching Intentions: A Comparative Study between the Brazilian and German Markets
In the competitive wireless market, there are many drivers behind customer defection. Switching barriers, service performance, perceived value in carriers’ offers, satisfaction and other constructs can play a pivotal ro...
Brazilian Multinationals’ Ownership Mode: The Influence of Institutional Factors and Firm Characteristics
This work investigates whether host countries institutional factors and firm characteristics can help the understanding of Brazilian multinationals’ choices of ownership mode for their foreign direct investments (FDI)....
Impact beyond impact factor: The Design-science way
In 2003, the following questions were exposed to the scientific community of operations management: “Do we contribute so little because we are irrelevant?” or “Are we irrelevant because we contribute so littl...