IDEAS home Printed from https://ideas.repec.org/a/eee/eurman/v38y2020i3p388-399.html
   My bibliography  Save this article

Making more of alliance portfolios: The role of alliance portfolio coordination

Author

Listed:
  • Van Wijk, Raymond
  • Nadolska, Anna

Abstract

Alliance portfolios enable firms to access and integrate multiple resources from different, simultaneous partners. We assess the extent to which alliance portfolio coordination benefits focal firms along three alliance portfolio characteristics: 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. Based on a questionnaire completed by 444 Dutch companies, we found that the three portfolio characteristics play an important role in creating benefits for focal firms through their portfolios. Additionally, our findings suggest that alliance portfolio coordination is an important element in dealing with the challenge of managing portfolios, in that it shapes the effect of the other portfolio characteristics.

Suggested Citation

  • Van Wijk, Raymond & Nadolska, Anna, 2020. "Making more of alliance portfolios: The role of alliance portfolio coordination," European Management Journal, Elsevier, vol. 38(3), pages 388-399.
  • Handle: RePEc:eee:eurman:v:38:y:2020:i:3:p:388-399
    DOI: 10.1016/j.emj.2019.12.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0263237319301537
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.emj.2019.12.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Min‐Ping Kang & Joseph T. Mahoney & Danchi Tan, 2009. "Why firms make unilateral investments specific to other firms: the case of OEM suppliers," Strategic Management Journal, Wiley Blackwell, vol. 30(2), pages 117-135, February.
    2. Andrea Martinez-Noya & Esteban Garcia-Canal & Mauro F. Guillen, 2013. "R & D Outsourcing and the Effectiveness of Intangible Investments: Is Proprietary Core Knowledge Walking out of the Door?," Journal of Management Studies, Wiley Blackwell, vol. 50(1), pages 67-91, January.
    3. Joel A. C. Baum & Tony Calabrese & Brian S. Silverman, 2000. "Don't go it alone: alliance network composition and startups' performance in Canadian biotechnology," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 267-294, March.
    4. Tarun Khanna, 1998. "The Scope of Alliances," Organization Science, INFORMS, vol. 9(3), pages 340-355, June.
    5. Werner H. Hoffmann, 2007. "Strategies for managing a portfolio of alliances," Strategic Management Journal, Wiley Blackwell, vol. 28(8), pages 827-856, August.
    6. Koen H. Heimeriks & Geert Duysters, 2007. "Alliance Capability as a Mediator Between Experience and Alliance Performance: An Empirical Investigation into the Alliance Capability Development Process," Journal of Management Studies, Wiley Blackwell, vol. 44(1), pages 25-49, January.
    7. Yadong Luo, 1997. "Partner Selection and Venturing Success: The Case of Joint Ventures with Firms in the People's Republic of China," Organization Science, INFORMS, vol. 8(6), pages 648-662, December.
    8. Gregory G. Dess & Richard B. Robinson, 1984. "Measuring organizational performance in the absence of objective measures: The case of the privately‐held firm and conglomerate business unit," Strategic Management Journal, Wiley Blackwell, vol. 5(3), pages 265-273, July.
    9. Navid Asgari & Kulwant Singh & Will Mitchell, 2017. "Alliance portfolio reconfiguration following a technological discontinuity," Strategic Management Journal, Wiley Blackwell, vol. 38(5), pages 1062-1081, May.
    10. Melanie Schreiner & Prashant Kale & Daniel Corsten, 2009. "What really is alliance management capability and how does it impact alliance outcomes and success?," Strategic Management Journal, Wiley Blackwell, vol. 30(13), pages 1395-1419, December.
    11. Rene M. Bakker & Joris Knoben, 2015. "Built to Last or Meant to End: Intertemporal Choice in Strategic Alliance Portfolios," Organization Science, INFORMS, vol. 26(1), pages 256-276, February.
    12. Randi Lunnan & Sven A. Haugland, 2008. "Predicting and measuring alliance performance: a multidimensional analysis," Strategic Management Journal, Wiley Blackwell, vol. 29(5), pages 545-556, May.
    13. Cobeña, Mar & Gallego, Ángeles & Casanueva, Cristóbal, 2017. "Heterogeneity, diversity and complementarity in alliance portfolios," European Management Journal, Elsevier, vol. 35(4), pages 464-476.
    14. Melissa A. Schilling, 2009. "Understanding the alliance data," Strategic Management Journal, Wiley Blackwell, vol. 30(3), pages 233-260, March.
    15. MB Sarkar & Preet S. Aulakh & Anoop Madhok, 2009. "Process Capabilities and Value Generation in Alliance Portfolios," Organization Science, INFORMS, vol. 20(3), pages 583-600, June.
    16. Ulrich Wassmer, 2010. "Alliance Portfolios : A Review and Research Agenda," Post-Print hal-02313048, HAL.
    17. Pierre Dussauge & Ulrich Wassmer, 2011. "Value Creation in Alliance Portfolios: The Benefits and Costs of Network Resource Interdependencies," Post-Print hal-00609489, HAL.
    18. Prashant Kale & Harbir Singh, 2007. "Building firm capabilities through learning: the role of the alliance learning process in alliance capability and firm‐level alliance success," Strategic Management Journal, Wiley Blackwell, vol. 28(10), pages 981-1000, October.
    19. Jeffrey H. Dyer, 1997. "Effective interim collaboration: how firms minimize transaction costs and maximise transaction value," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 535-556, August.
    20. Marco Furlotti & Giuseppe Soda, 2018. "Fit for the Task: Complementarity, Asymmetry, and Partner Selection in Alliances," Organization Science, INFORMS, vol. 29(5), pages 837-854, October.
    21. Daniel A. Levinthal & Brian Wu, 2010. "Opportunity costs and non‐scale free capabilities: profit maximization, corporate scope, and profit margins," Strategic Management Journal, Wiley Blackwell, vol. 31(7), pages 780-801, July.
    22. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    23. Hüseyin Tanriverdi & N. Venkatraman, 2005. "Knowledge relatedness and the performance of multibusiness firms," Strategic Management Journal, Wiley Blackwell, vol. 26(2), pages 97-119, February.
    24. Neil A. Morgan & Douglas W. Vorhies & Charlotte H. Mason, 2009. "Market orientation, marketing capabilities, and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 30(8), pages 909-920, August.
    25. Deeds, David L. & Hill, Charles W. L., 1996. "Strategic alliances and the rate of new product development: An empirical study of entrepreneurial biotechnology firms," Journal of Business Venturing, Elsevier, vol. 11(1), pages 41-55, January.
    26. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
    27. Ulrich Wassmer & Pierre Dussauge, 2011. "Value creation in alliance portfolios : The benefits and costs of network resource interdependencies," Post-Print hal-02313045, HAL.
    28. Belén Villalonga & Anita M. McGahan, 2005. "The choice among acquisitions, alliances, and divestitures," Strategic Management Journal, Wiley Blackwell, vol. 26(13), pages 1183-1208, December.
    29. Duysters, Geert & de Man, Ard-Pieter & Wildeman, Leo, 1999. "A network approach to alliance management," European Management Journal, Elsevier, vol. 17(2), pages 182-187, April.
    30. Garcia Martinez, Marian & Zouaghi, Ferdaous & Sanchez Garcia, Mercedes, 2017. "Capturing value from alliance portfolio diversity: The mediating role of R&D human capital in high and low tech industries," Technovation, Elsevier, vol. 59(C), pages 55-67.
    31. Jeffrey H. Dyer & Harbir Singh & William S. Hesterly, 2018. "The relational view revisited: A dynamic perspective on value creation and value capture," Strategic Management Journal, Wiley Blackwell, vol. 39(12), pages 3140-3162, December.
    32. Philip Degener & Indre Maurer & Suleika Bort, 2018. "Alliance Portfolio Diversity and Innovation: The Interplay of Portfolio Coordination Capability and Proactive Partner Selection Capability," Journal of Management Studies, Wiley Blackwell, vol. 55(8), pages 1386-1422, December.
    33. Chandler, Gaylen N. & Hanks, Steven H., 1993. "Measuring the performance of emerging businesses: A validation study," Journal of Business Venturing, Elsevier, vol. 8(5), pages 391-408, September.
    34. Seungwha (Andy) Chung & Harbir Singh & Kyungmook Lee, 2000. "Complementarity, status similarity and social capital as drivers of alliance formation," Strategic Management Journal, Wiley Blackwell, vol. 21(1), pages 1-22, January.
    35. Anoop Madhok & Stephen B. Tallman, 1998. "Resources, Transactions and Rents: Managing Value Through Interfirm Collaborative Relationships," Organization Science, INFORMS, vol. 9(3), pages 326-339, June.
    36. Dovev Lavie, 2007. "Alliance portfolios and firm performance: A study of value creation and appropriation in the U.S. software industry," Strategic Management Journal, Wiley Blackwell, vol. 28(12), pages 1187-1212, December.
    37. Peter J. Lane & Jane E. Salk & Marjorie A. Lyles, 2001. "Absorptive capacity, learning, and performance in international joint ventures," Strategic Management Journal, Wiley Blackwell, vol. 22(12), pages 1139-1161, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jacob, Jojo & Belderbos, René & Lokshin, Boris, 2023. "Entangled modes: Boundaries to effective international knowledge sourcing through technology alliances and technology-based acquisitions," Technovation, Elsevier, vol. 122(C).
    2. Pinar Ozcan, 2018. "Growing with the market: How changing conditions during market growth affect formation and evolution of interfirm ties," Strategic Management Journal, Wiley Blackwell, vol. 39(2), pages 295-328, February.
    3. Kavusan, K., 2015. "Essays on capability development through alliances," Other publications TiSEM 8eb736a5-b217-4718-ac13-d, Tilburg University, School of Economics and Management.
    4. Dovev Lavie & Randi Lunnan & Binh Minh T. Truong, 2022. "How does a partner's acquisition affect the value of the firm's alliance with that partner?," Strategic Management Journal, Wiley Blackwell, vol. 43(9), pages 1897-1926, September.
    5. Castro, Ignacio & Casanueva, Cristóbal & Galán, José Luis, 2014. "Dynamic evolution of alliance portfolios," European Management Journal, Elsevier, vol. 32(3), pages 423-433.
    6. Park, Gunno & Kim, Marco JinHwan & Kang, Jina, 2015. "Competitive embeddedness: The impact of competitive relations among a firm's current alliance partners on its new alliance formations," International Business Review, Elsevier, vol. 24(2), pages 196-208.
    7. Pangarkar, Nitin & Yuan, Lin & Hussain, Sairah, 2017. "Too much of a good thing? Alliance portfolio size and alliance expansion," European Management Journal, Elsevier, vol. 35(4), pages 477-485.
    8. Müller, Dirk, 2010. "Alliance Coordination, Dysfunctions, and the Protection of Idiosyncratic Knowledge in Strategic Learning Alliances," EconStor Preprints 41039, ZBW - Leibniz Information Centre for Economics.
    9. Cho, Sam Yul & Arthurs, Jonathan D., 2018. "The influence of alliance experience on acquisition premiums and post-acquisition performance," Journal of Business Research, Elsevier, vol. 88(C), pages 1-10.
    10. Haider, Sajjad & Mariotti, Francesca, 2016. "The orchestration of alliance portfolios: The role of alliance portfolio capability," Scandinavian Journal of Management, Elsevier, vol. 32(3), pages 127-141.
    11. Wadhwa, Anu & Phelps, Corey & Kotha, Suresh, 2016. "Corporate venture capital portfolios and firm innovation," Journal of Business Venturing, Elsevier, vol. 31(1), pages 95-112.
    12. Casanueva, Cristóbal & Gallego, Ángeles & Sancho, María, 2013. "Network resources and social capital in airline alliance portfolios," Tourism Management, Elsevier, vol. 36(C), pages 441-453.
    13. Golonka, Monika, 2015. "Proactive cooperation with strangers: Enhancing complexity of the ICT firms' alliance portfolio and their innovativeness," European Management Journal, Elsevier, vol. 33(3), pages 168-178.
    14. Cobeña, Mar & Gallego, Ángeles & Casanueva, Cristóbal, 2017. "Heterogeneity, diversity and complementarity in alliance portfolios," European Management Journal, Elsevier, vol. 35(4), pages 464-476.
    15. Christopher R. Penney & James G. Combs, 2020. "A Transaction Cost Perspective of Alliance Portfolio Diversity," Journal of Management Studies, Wiley Blackwell, vol. 57(6), pages 1073-1105, September.
    16. Vivek Tandon & Navid Asgari & Ram Ranganathan, 2023. "Divestment of relational assets following acquisitions: Evidence from the biopharmaceutical industry," Strategic Management Journal, Wiley Blackwell, vol. 44(4), pages 1013-1052, April.
    17. Koo, JaSeung & Yamanoi, Junichi & Sakano, Tomoaki, 2020. "Acquisition announcements and stock market valuations of acquiring firms’ alliance partners: A transaction cost perspective," Journal of Business Research, Elsevier, vol. 118(C), pages 129-140.
    18. Vikas A. Aggarwal, 2020. "Resource congestion in alliance networks: How a firm's partners’ partners influence the benefits of collaboration," Strategic Management Journal, Wiley Blackwell, vol. 41(4), pages 627-655, April.
    19. Fabian Reck & Alexander Fliaster & Michael Kolloch, 2022. "How to Build a Network that Facilitates Firm‐level Innovation: An Integration of Structural and Managerial Perspectives," Journal of Management Studies, Wiley Blackwell, vol. 59(4), pages 998-1031, June.
    20. Tom Broekel & Matthias Brachert, 2015. "The structure and evolution of inter-sectoral technological complementarity in R&D in Germany from 1990 to 2011," Journal of Evolutionary Economics, Springer, vol. 25(4), pages 755-785, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eurman:v:38:y:2020:i:3:p:388-399. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/115/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.