Alliance dynamics for entrepreneurial firms
AbstractSmall firms are thought to encounter various difficulties implementing strategic alliances. Due to these problems, they may be less able to reap the benefits of alliance adaptation, and the changes that occur in alliances over time often will not coincide with the small firm's interests. The evidence we present on contractual renegotiations in alliances suggests that small firms are no more or less likely to experience contractual changes in general. However, small firms tend to bear inefficiencies of two kinds in their collaborations. They are less likely to adapt alliances in the presence of governance misalignments. Furthermore, they are prone to make greater transaction-specific investments without commensurate contractual safeguards, which can lead to ex post hold-up in the form of contractual renegotiations.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by IESE Business School in its series IESE Research Papers with number D/526.
Length: 23 pages
Date of creation: 03 Nov 2003
Date of revision:
strategic alliances; entrepreneurial firms; small firms; contractual renegotiation; governance misalignment;
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Deeds, David L. & Hill, Charles W. L., 1999. "An examination of opportunistic action within research alliances: Evidence from the biotechnology industry," Journal of Business Venturing, Elsevier, vol. 14(2), pages 141-163, March.
- Erin Anderson, 1988. "Strategic Implications of Darwinian Economics for Selling Efficiency and Choice of Integrated or Independent Sales Forces," Management Science, INFORMS, vol. 34(5), pages 599-618, May.
- JS Armstrong & Terry Overton, 2005. "Estimating Nonresponse Bias in Mail Surveys," General Economics and Teaching 0502044, EconWPA.
- Lerner, Josh & Merges, Robert P, 1998. "The Control of Technology Alliances: An Empirical Analysis of the Biotechnology Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 46(2), pages 125-56, June.
- Oxley, Joanne E, 1997. "Appropriability Hazards and Governance in Strategic Alliances: A Transaction Cost Approach," Journal of Law, Economics and Organization, Oxford University Press, vol. 13(2), pages 387-409, October.
- Larson, Andrea, 1991. "Partner networks: Leveraging external ties to improve entrepreneurial performance," Journal of Business Venturing, Elsevier, vol. 6(3), pages 173-188, May.
- Pisano, Gary P, 1989. "Using Equity Participation to Support Exchange: Evidence from the Biotechnology Industry," Journal of Law, Economics and Organization, Oxford University Press, vol. 5(1), pages 109-26, Spring.
- Weaver, K. Mark & Dickson, Pat H., 1998. "Outcome quality of small- to medium- sized enterprise-based alliances: The role of perceived partner behaviors," Journal of Business Venturing, Elsevier, vol. 13(6), pages 505-522, November.
- Hara, George & Kanai, Toshihiro, 1994. "Entrepreneurial networks across oceans to promote international strategic alliances for small businesses," Journal of Business Venturing, Elsevier, vol. 9(6), pages 489-507, November.
- Niederkofler, Martin, 1991. "The evolution of strategic alliances: Opportunities for managerial influence," Journal of Business Venturing, Elsevier, vol. 6(4), pages 237-257, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Silvia Jimenez).
If references are entirely missing, you can add them using this form.