Session 416

Resource Dependence, Power Relations and Cooperation

Track N

Date: Monday, September 22, 2014


Time: 11:00 – 12:15


Room: Estancia 307

Session Chair:

  • Stephen B Tallman, University of Richmond

Title: Altering the Social Structure: The Moderating Role of the CEO’s Power on Partner Selection


  • Daniel Tzabbar, Drexel University
  • Barak Aharonson, Tel Aviv University
  • Terry Amburgey, University of Toronto
  • Di Tong, Drexel University

Abstract: We seek to contribute to the sparse knowledge about how and when a firm’s social structure is altered. Relying on a longitudinal study of alliances among U.S. biotechnology firms, we confirm that while partner specific experience indeed increases the likelihood of the partners forming a new alliance, such a tendency is moderated by the degree of structural power the CEO holds. Specifically, the stronger the CEO’s structural power, the less likely that familiar partners will forge a new alliance. By integrating the theory of the CEO’s power with network theory, we provide a theoretical and empirical meeting ground for economists and organizational theorists considering the various micro-mechanisms involved in partner selection and the role that individual decision makers play in shaping partner selection decisions.

Title: Cross-Business-Unit Alignment and the Motivation to Use Power in a Multimarket Buyer-Supplier Relationship


  • Lutz Kaufmann, WHU-Otto Beisheim School of Management
  • Felix Reimann, Korea University Business School
  • Pei Shen, WHU – Otto Beisheim School of Management

Abstract: Not only competitors but also supply chain partners can use power, creating disadvantages for firms. Therefore, it is vital for firms to understand how to deter such use of power in the supply chain to protect their own competitive advantage. Extant research on this topic has mostly treated firms as monolithic actors. In reality, firms often have a dispersed multi-business-unit structure, with varying degrees of alignment among the business units (BUs). Building on the “shadow of the future” and resource dependence theory, we argue that alignment among BUs in the firm, as well as expectations of such alignment within the supply chain partner, influences the motivation to use power in buyer-supplier relationships. We test the developed hypotheses through a large-scale experimental (vignette) survey.

Title: Take or Give: How Resource Flows into and out of Alliance Portfolios Affect Firm Performance


  • Manuela Hoehn-Weiss, Oregon State University
  • Samina Karim, Northeastern University

Abstract: In this research we investigate how resource flows into and out of alliance portfolios as well as uniqueness of resources affect firm performance. We test our hypotheses on a sample of 59 firms in the U.S. passenger airline industry during 1998-2011. We find that resource flow direction affects a focal firm’s profitability, and there are curvilinear effects between access to unique alliance portfolio resources and ability to appropriate value. Our initial findings point to the importance of considering impact of resource flows and resource characteristics on dependencies and value appropriation by focal firms and alliance portfolio partners.

Title: Using Managerial Personal Ties to Manage Alliances: Bridging Resource Dependence and Social Embeddedness


  • Han Jiang, University of Arizona
  • Luiz Mesquita, Arizona State University
  • Jun Xia, University of Texas at Dallas

Abstract: In this study we focus on the following understudied research question: under what circumstances do firms draw on their managerial personal ties to govern the operation of their alliances? We address this question by borrowing from, and delineating stronger theoretical boundaries across resource dependence theory and the social embeddedness perspective. Our basic argument is that the interdependence between partner firms affects the extent to which they use managerial personal ties as an alliance governance mechanism. Statistic results from a sample of 244 socially embedded alliances, i.e., alliances formed on the basis of personal ties between managers in partner firms in China, largely confirm our theoretical arguments, with few intriguing exceptions.

All Sessions in Track N...

Sun: 08:00 – 09:15
Session 408: Future Research Directions in Cooperative Strategy
Sun: 11:15 – 12:30
Session 427: Research Methods in Cooperative Strategy
Sun: 15:45 – 17:00
Session 422: Alliance Formation and Stakeholder Perceptions
Sun: 17:15 – 18:30
Session 610: Cooperative Strategies IG Business Meeting
Mon: 08:00 – 09:15
Session 418: The Structure and Evolution of Networks
Session 420: Relational Mechanisms and Governance Choice in Alliances
Mon: 11:00 – 12:15
Session 416: Resource Dependence, Power Relations and Cooperation
Session 423: Alliances and Innovation Performance
Mon: 14:45 – 16:00
Session 424: Partnering Experience, Alliance Governance, and Performance
Session 425: Tradeoffs and Opportunism in Cooperative Relations
Mon: 16:30 – 17:45
Session 419: Cognition and Learning in Alliances
Tue: 08:00 – 09:15
Session 409: Increasing the Relevance of Strategy Research
Session 417: Networks of Competition and Cooperation
Tue: 15:30 – 16:45
Session 421: Acquisitions, Alliances, and Contracts
Tue: 17:15 – 18:30
Session 454: Multipartner Cooperation and Third-Party Relations

Strategic Management Society