IDEAS home Printed from https://ideas.repec.org/a/taf/ecinnt/v12y2003i3p245-268.html
   My bibliography  Save this article

The self-organisation of strategic alliances

Author

Listed:
  • Andreas Pyka
  • Paul Windrum

Abstract

The paper examines factors influencing the formation of horizontal inter-firm strategic alliances in dynamic product markets characterised by rapid rates of technological change and a high degree of market uncertainty. A novel self-organisation approach to strategic alliances is developed which is contrasted with transaction cost and competence approaches. The self-organisation approach is operationalised by a simulation model, the results of which highlight the importance of micro-macro feedbacks between individuals' decision-making and emergent institutional environments. Industries with similar initial characteristics can evolve into very different institutional regimes because firms' decisions to cooperate within an alliance or to compete individually are interdependent, expected payoffs depending on the sequence of prior decisions. The findings raise a serious question mark against structuralist approaches to the study of strategic alliances.

Suggested Citation

  • Andreas Pyka & Paul Windrum, 2003. "The self-organisation of strategic alliances," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(3), pages 245-268.
    • Handle: RePEc:taf:ecinnt:v:12:y:2003:i:3:p:245-268
    DOI: 10.1080/10438590290025561
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/10438590290025561
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10438590290025561?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 look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Erin Anderson & Hubert Gatignon, 1986. "Modes of Foreign Entry: A Transaction Cost Analysis and Propositions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 17(3), pages 1-26, September.
    2. Winter, Sidney G., 1984. "Schumpeterian competition in alternative technological regimes," Journal of Economic Behavior & Organization, Elsevier, vol. 5(3-4), pages 287-320.
    3. Artz, Kendall W. & Brush, Thomas H., 2000. "Asset specificity, uncertainty and relational norms: an examination of coordination costs in collaborative strategic alliances," Journal of Economic Behavior & Organization, Elsevier, vol. 41(4), pages 337-362, April.
    4. Banerji, Kunal & Sambharya, Rakesh B., 1998. "Effect of network organization on alliance formation: A study of the Japanese automobile ancillary industry," Journal of International Management, Elsevier, vol. 4(1), pages 41-57, July.
    5. Arthur, W Brian, 1989. "Competing Technologies, Increasing Returns, and Lock-In by Historical Events," Economic Journal, Royal Economic Society, vol. 99(394), pages 116-131, March.
    6. Stephanie Forrest & Terry Jones, 1994. "Modeling Complex Adaptive Systems with Echo," Working Papers 94-12-064, Santa Fe Institute.
    7. Robert C. Hill & Don Hellriegel, 1994. "Critical Contingencies in Joint Venture Management: Some Lessons from Managers," Organization Science, INFORMS, vol. 5(4), pages 594-607, November.
    8. Utterback, James M & Abernathy, William J, 1975. "A dynamic model of process and product innovation," Omega, Elsevier, vol. 3(6), pages 639-656, December.
    9. David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-337, May.
    10. Weisbuch, Gerard & Kirman, Alan & Herreiner, Dorothea, 2000. "Market Organisation and Trading Relationships," Economic Journal, Royal Economic Society, vol. 110(463), pages 411-436, April.
    11. Arora, Ashish & Gambardella, Alfonso, 1994. "The changing technology of technological change: general and abstract knowledge and the division of innovative labour," Research Policy, Elsevier, vol. 23(5), pages 523-532, September.
    12. Rosenberg, Nathan, 1992. "Scientific instrumentation and university research," Research Policy, Elsevier, vol. 21(4), pages 381-390, August.
    13. Andrea Larson & Jennifer A. Starr, 1993. "A Network Model of Organization Formation," Entrepreneurship Theory and Practice, , vol. 17(2), pages 5-15, January.
    14. Anoop Madhok, 1997. "Cost, Value And Foreign Market Entry Mode: The Transaction And The Firm," Strategic Management Journal, Wiley Blackwell, vol. 18(1), pages 39-61, January.
    15. Mowery, David C. & Oxley, Joanne E. & Silverman, Brian S., 1998. "Technological overlap and interfirm cooperation: implications for the resource-based view of the firm," Research Policy, Elsevier, vol. 27(5), pages 507-523, September.
    16. Gerald Silverberg & Giovanni Dosi & Luigi Orsenigo, 2000. "Innovation, Diversity and Diffusion: A Self-Organisation Model," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 14, pages 410-432, Edward Elgar Publishing.
    17. John Hagedoorn, 1993. "Understanding the rationale of strategic technology partnering: Interorganizational modes of cooperation and sectoral differences," Strategic Management Journal, Wiley Blackwell, vol. 14(5), pages 371-385, July.
    18. Windrum, Paul & Birchenhall, Chris, 1998. "Is product life cycle theory a special case? Dominant designs and the emergence of market niches through coevolutionary-learning," Structural Change and Economic Dynamics, Elsevier, vol. 9(1), pages 109-134, March.
    19. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
    20. Paul W Beamish & John C Banks, 1987. "Equity Joint Ventures and Theory of the Multinational Enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 18(2), pages 1-16, June.
    21. Joseph Farrell & Garth Saloner, 1985. "Installed Base and Compatibility With Implications for Product Preannouncements," Working papers 385, Massachusetts Institute of Technology (MIT), Department of Economics.
    22. Nelson, Charles R. & Plosser, Charles I., 1982. "Trends and random walks in macroeconmic time series : Some evidence and implications," Journal of Monetary Economics, Elsevier, vol. 10(2), pages 139-162.
    23. Bruce Kogut, 1988. "Joint ventures: Theoretical and empirical perspectives," Strategic Management Journal, Wiley Blackwell, vol. 9(4), pages 319-332, July.
    24. Kirk Monteverde & David J. Teece, 1982. "Supplier Switching Costs and Vertical Integration in the Automobile Industry," Bell Journal of Economics, The RAND Corporation, vol. 13(1), pages 206-213, Spring.
    25. Kydland, Finn E & Prescott, Edward C, 1982. "Time to Build and Aggregate Fluctuations," Econometrica, Econometric Society, vol. 50(6), pages 1345-1370, November.
    26. Axelrod, Robert, 1981. "The Emergence of Cooperation among Egoists," American Political Science Review, Cambridge University Press, vol. 75(2), pages 306-318, June.
    27. Bengt-ake Lundvall & Bjorn Johnson, 1994. "The Learning Economy," Industry and Innovation, Taylor & Francis Journals, vol. 1(2), pages 23-42.
    28. Farrell, Joseph & Saloner, Garth, 1986. "Standardization and variety," Economics Letters, Elsevier, vol. 20(1), pages 71-74.
    29. Jean‐Francois Hennart, 1988. "A transaction costs theory of equity joint ventures," Strategic Management Journal, Wiley Blackwell, vol. 9(4), pages 361-374, July.
    30. A. Bassanini & G. Dosi, 1998. "Competing Technologies, International Diffusion and the Rate of Convergence to a Stable Market Structure," Working Papers ir98012, International Institute for Applied Systems Analysis.
    31. Julie M. Hite & William S. Hesterly, 2001. "The evolution of firm networks: from emergence to early growth of the firm," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 275-286, March.
    32. Rosenberg, Nathan & Nelson, Richard R., 1994. "American universities and technical advance in industry," Research Policy, Elsevier, vol. 23(3), pages 323-348, May.
    33. 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.
    34. Crocker, Keith J & Masten, Scott E, 1991. "Pretia ex Machina? Prices and Process in Long-Term Contracts," Journal of Law and Economics, University of Chicago Press, vol. 34(1), pages 69-99, April.
    35. 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.
    36. Malerba, Franco & Orsenigo, Luigi, 1997. "Technological Regimes and Sectoral Patterns of Innovative Activities," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 6(1), pages 83-117.
    37. Williamson, Oliver E, 1983. "Credible Commitments: Using Hostages to Support Exchange," American Economic Review, American Economic Association, vol. 73(4), pages 519-540, September.
    38. Brian Arthur, W. & Ermoliev, Yu. M. & Kaniovski, Yu. M., 1987. "Path-dependent processes and the emergence of macro-structure," European Journal of Operational Research, Elsevier, vol. 30(3), pages 294-303, June.
    39. Kranton, Rachel E, 1996. "The Formation of Cooperative Relationships," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 12(1), pages 214-233, April.
    40. Masten, Scott E, 1984. "The Organization of Production: Evidence from the Aerospace Industry," Journal of Law and Economics, University of Chicago Press, vol. 27(2), pages 403-417, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. David Anzola & Peter Barbrook-Johnson & Juan I. Cano, 2017. "Self-organization and social science," Computational and Mathematical Organization Theory, Springer, vol. 23(2), pages 221-257, June.
    2. Čeičytė Jolita & Petraitė Monika, 2017. "Self-Organisation Perspective to Responsible Innovation in Industry," Management of Organizations: Systematic Research, Sciendo, vol. 78(1), pages 21-32, December.
    3. Yin, Qiaoyi & Song, Dian & Lai, Fujun & Collins, Brian J. & Dogru, Ali K., 2023. "Customizing governance mechanisms to reduce opportunism in buyer–supplier relationships in the digital economy," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    4. Xue, Jinjie & Yuan, Hongping & Shi, Benshan, 2016. "Investigating partners' opportunistic behavior in joint ventures in China: The role of transaction costs and relational exchanges," Journal of Business Research, Elsevier, vol. 69(12), pages 6067-6078.
    5. Charles F. Mason, 2016. "Concentration Trends in the Gulf of Mexico Oil and Gas Industry," The Energy Journal, International Association for Energy Economics, vol. 0(Adelman S).
    6. Schön, Benjamin & Pyka, Andreas, 2012. "A taxonomy of innovation networks," FZID Discussion Papers 42-2012, University of Hohenheim, Center for Research on Innovation and Services (FZID).
    7. Jolita Ceicyte & Monika Petraite, 2018. "Networked Responsibility Approach for Responsible Innovation: Perspective of the Firm," Sustainability, MDPI, vol. 10(6), pages 1-15, May.
    8. Pyka, Andreas, 2011. "Avoiding evolutionary inefficiencies in innovation networks," FZID Discussion Papers 35-2011, University of Hohenheim, Center for Research on Innovation and Services (FZID).

    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. Dosi, Giovanni & Nelson, Richard R., 2010. "Technical Change and Industrial Dynamics as Evolutionary Processes," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 51-127, Elsevier.
    2. Paul Windrum, 2003. "Unlocking a Lock-in: Towards a Model of Technological Succession," Chapters, in: Pier Paolo Saviotti (ed.), Applied Evolutionary Economics, chapter 11, Edward Elgar Publishing.
    3. Pyka, Andreas & Windrum, Paul, 2000. "The Self-Organisation of Innovation Networks," Research Memorandum 020, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    4. Madhok, Anoop, 1998. "The nature of multinational firm boundaries: Transaction costs, firm capabilities and foreign market entry mode," International Business Review, Elsevier, vol. 7(3), pages 259-290, June.
    5. Safarzyńska, Karolina & Frenken, Koen & van den Bergh, Jeroen C.J.M., 2012. "Evolutionary theorizing and modeling of sustainability transitions," Research Policy, Elsevier, vol. 41(6), pages 1011-1024.
    6. Stienstra, Miranda, 2020. "The determinants and performance implications of alliance partner acquisition," Other publications TiSEM 7fdee0c2-d4d2-4f5b-95e3-2, Tilburg University, School of Economics and Management.
    7. Lionel Nesta & Vincent Mangematin, 2002. "Industry Life Cycle, Knowledge Generation and Technological Networks," Grenoble Ecole de Management (Post-Print) hal-03398092, HAL.
    8. Reuer, Jeffrey J. & Ariño, Africa, 2000. "Governance changes in strategic alliances: Antecedents of contractual renegotiations," IESE Research Papers D/415, IESE Business School.
    9. Mikko Ketokivi & Joseph T. Mahoney, 2020. "Transaction Cost Economics As a Theory of Supply Chain Efficiency," Production and Operations Management, Production and Operations Management Society, vol. 29(4), pages 1011-1031, April.
    10. De Vita, Glauco & Tekaya, Arafet & Wang, Catherine L., 2010. "Asset specificity's impact on outsourcing relationship performance: A disaggregated analysis by buyer-supplier asset specificity dimensions," Journal of Business Research, Elsevier, vol. 63(7), pages 657-666, July.
    11. Mark H. Hansen & Robert E. Hoskisson & Jay B. Barney, 2008. "Competitive advantage in alliance governance: resolving the opportunism minimization-gain maximization paradox," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(2-3), pages 191-208.
    12. Jonard, N. & Yfldizoglu, M., 1998. "Technological diversity in an evolutionary industry model with localized learning and network externalities," Structural Change and Economic Dynamics, Elsevier, vol. 9(1), pages 35-53, March.
    13. Sandra Silva, 2009. "On evolutionary technological change and economic growth: Lakatos as a starting point for appraisal," Journal of Evolutionary Economics, Springer, vol. 19(1), pages 111-135, February.
    14. 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.
    15. Troy Tassier, 2013. "Handbook of Research on Complexity, by J. Barkley Rosser, Jr. and Edward Elgar," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 39(1), pages 132-133.
    16. Murat YILDIZOGLU, 2009. "Evolutionary approaches of economic dynamics (In French)," Cahiers du GREThA (2007-2019) 2009-16, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    17. Malerba, Franco, 2007. "Innovation and the dynamics and evolution of industries: Progress and challenges," International Journal of Industrial Organization, Elsevier, vol. 25(4), pages 675-699, August.
    18. Bell, J.H.J., 1996. "Joint or Single Venturing? : An Electric Approach to Foreign Entry Mode Choice," Other publications TiSEM 06f84735-3cf5-432f-8bc8-c, Tilburg University, School of Economics and Management.
    19. Antonio Doria, Francisco, 2011. "J.B. Rosser Jr. , Handbook of Research on Complexity, Edward Elgar, Cheltenham, UK--Northampton, MA, USA (2009) 436 + viii pp., index, ISBN 978 1 84542 089 5 (cased)," Journal of Economic Behavior & Organization, Elsevier, vol. 78(1-2), pages 196-204, April.
    20. Cecere, Grazia & Corrocher, Nicoletta & Battaglia, Riccardo David, 2015. "Innovation and competition in the smartphone industry: Is there a dominant design?," Telecommunications Policy, Elsevier, vol. 39(3), pages 162-175.

    More about this item

    Keywords

    Strategic Alliances; Innovation Networks; Self-organisation;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

    Statistics

    Access and download statistics

    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:taf:ecinnt:v:12:y:2003:i:3:p:245-268. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/GEIN20 .

    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.