Session 423

Alliances and Innovation Performance

Track N

Date: Monday, September 22, 2014

Track I

Time: 11:00 – 12:15

Common Ground

Room: Bruselas


Facilitator:

  • Ram Ranganathan, University of Texas at Austin

Title: Disentangling IPO Performance Through a Typology of Environmental Discontinuous Change

Authors

  • Frank W. Ng, Hang Seng Management College

Abstract: Research on discontinuous environmental change contributed to the strategic management literature, yet past studies appear to assume homogeneity among changes. By introducing the concept of crisis uncertainty, I propose a typology to differentiate the performance consequences of three types of discontinuous change (stepwise, shocking, disruptive change). These changes are categorized along the dimensions of crisis-state and crisis-effect uncertainty, and each change type is represented by differing levels of crisis-response uncertainty. Using a sample of Hong Kong manufacturing IPOs in 1996-2011, I will examine the heterogeneity of the effects on short- and long-term IPO performance by three significant events: The 1997 Handover, SARS outbreak, and Financial Crisis in 2008. By demonstrating the value of this typology, this study offers theoretical contributions and insights for future research.

Title: Empirical Generalizations about Alliance Scope, Experience, and Structure in the Biotechnology Sector

Authors

  • Peter Smith, University of Auckland
  • Lisa Callagher, University of Auckland
  • Marc Orlitzky, University of South Australia
  • Xin Lei Huang, University of Auckland

Abstract: The effect of alliance scope, experience, and structure in the biotechnology sector has been vigorously debated for about two decades. With this integrative research review by way of meta-analysis, we try to provide greater empirical clarity to this contested line of research. Our meta-analytic findings confirm that relationships between alliance scope and firm performance and alliance experience and firm performance do exist in biotech. Furthermore, the results suggest that, consistent with our expectations, the meta-analytic observed effect sizes r are higher for nonfinancial performance than financial performance—except for alliance experience. Contrary to our expectations, the data from the biotech sector also suggest no significant differences between the success of horizontal and vertical alliance structures.

Title: Internal and External Exploration Orientation: Substitutes or Complements?

Authors

  • Werner Hoffmann, WU-Vienna
  • Roman Wörner, WU-Vienna

Abstract: Using data from the biopharmaceutical industry, the current study investigates the combined effect of internal and external exploration (exploitation) on firm performance. Building on the conflicting results of prior research, we argue that whether internal and external exploration (exploitation) complement or substitute one another differs for different performance goals and furthermore depends on the characteristics of the firm - in particular a firm's vertical scope. Our findings contribute to existing research by highlighting the moderating role of the vertical scope of a firm when it comes to explaining the performance effects of the interaction between internal and external exploration (exploitation). Furthermore, the results of our study underscore that these effects differ between exploration and exploitation performance.

Title: Product Liability Crises and R&D Alliances: What Governance Mode Minimizes Negative Spillovers?

Authors

  • Luis Diestre, IE Business School

Abstract: I explore how a product liability crisis may spill over into an R&D ally. Building on transaction costs economics and signaling theory I find that a more hierarchical governance mode (a) reduces the probability that allies will suffer a negative spillover effect, but (b) increases the magnitude of such an effect should it happen. This evidence unveils a fundamental dilemma: Is a low probability of suffering a big loss preferred over a high probability of suffering a small loss? I propose a contingency model that identifies when one option is preferred to the other, and consequently, improves our ability to predict governance mode selection in R&D alliances.

Title: The Contingent Effect of Diverse Alliances, Social Capital, and Codifiability on Innovation Performance

Authors

  • Vesna Vlaisavljevic, Pablo de Olavide University
  • Carmen Cabello-Medina, Pablo de Olavide University
  • Ana Pérez-Luño, Pablo de Olavide University

Abstract: The use of alliances is increasingly considered a key element for the development of innovations among companies. While this is true, the mere membership in alliances does not explain innovation performance. Some features must be present in order to reap the benefit of collaboration for innovation. We propose that certain degree of diversity among partners can contribute to the success of the alliances for innovation, and that this relationship could be understood as an inverted U-shaped relationship. Besides, we explain that this effect may be moderated by factors such as the quality of relationships among partners and the type of knowledge shared.

Title: What Drives Alliance Portfolio Beneftis? The Role of Alliance Portfolio Characteristics and Coordination

Authors

  • Raymond Van Wijk, Erasmus University-Rotterdam
  • Anna Nadolska, Erasmus University Rotterdam

Abstract: Alliance portfolios enable firms to access and integrate multiple resources from different, simultaneous partners. In our paper, we assess how alliance portfolio size, the complementarity of the resources available through the portfolio and the degree to which relation-specific investments are made across the portfolio influence alliance portfolio benefits. Next to studying characteristics of alliance portfolios, we focus on the moderating role of alliance portfolio coordination. Based on a questionnaire returned by 444 Dutch companies, we found that the three portfolio characteristics play an important role in creating benefits focal firms gain through their portfolios. Additionally, our findings suggest that alliance portfolios coordination is an important element of dealing with the challenge of managing portfolios as it shapes the effect of the other portfolio characteristics.

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

All Sessions in Track I...

Sun: 08:00 – 09:15
Session 278: Routines: Theoretical and Empirical Advancements and Avenues for Future Research
Sun: 09:30 – 10:45
Session 463: Big Data: Revolutionizing Innovation and Competition
Sun: 11:15 – 12:30
Session 464: Foundations Session: A conversation with Michael Tushman on Leadership, Innovation and Strategic Change
Sun: 15:45 – 17:00
Session 270: Innovation in MNCs and Global Networks
Session 275: Open Innovation: Outcomes and antecedents
Sun: 17:15 – 18:30
Session 605: Knowledge and Innovation IG Business Meeting
Mon: 08:00 – 09:15
Session 260: IPRs, Appropriability and Innovation
Session 274: Incumbents, Radical Innovations and Disruptive Technologies
Mon: 11:00 – 12:15
Session 276: Organizational Learning
Session 277: Learning From Others
Session 372: The Challenges of Global Operations: Managing R&D and Complexity
Session 423: Alliances and Innovation Performance
Mon: 14:45 – 16:00
Session 265: Learning, Search, Slack: The behavioral theory revisited
Session 269: Knowledge Flows: Transfer, sharing and replication
Mon: 16:30 – 17:45
Session 254: Conversations about Knowledge
Session 257: Spin offs, Venture Capital and Entrepreneurship
Tue: 08:00 – 09:15
Session 259: Institutionalizing Innovation: Norms, status and legitimacy issues
Session 273: From Internal Resources to Customer Needs
Session 383: Globalization of R&D: Implications for Learning and Innovation
Tue: 11:00 – 12:15
Session 267: The Role of Individuals in Innovation
Session 272: Research and Development: Antecedents and outcomes
Session 361: Creativity and Innovation
Session 469: M&As and Innovation
Tue: 15:30 – 16:45
Session 262: Networks of Innovators
Session 263: Innovation Models in Emerging Economies
Tue: 17:15 – 18:30
Session 255: Exploration and Exploitation
Session 256: Organizing for Open Innovation
Session 261: Practices and Processes for Innovation


Strategic Management Society

Madrid