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Trade Offs in Alliance Capabilities: Case Studies of Pharmaceutical Firms in Japan

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  • Ryuichi Nakamoto
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    Abstract

    Organizational capability is an important factor in sustaining competitive advantage. As yet, there have been no studies comparing organizational capabilities. This paper will examine the relationship between two capabilities: alliance partner selection and alliance implementation capabilities. Field research was conducted to examine the process of alliance partner selection and implementation with six pharmaceutical companies in Japan. This paper focuses on two companies reputed to have high alliance capabilities. One had a reputation for good partner selection, but a below-average capability for implementation. The other had the opposite - a below-average partner selection capability, with strong implementation capabilities. Based on a series of extensive interviews, it may be posited that there is an inverse relationship between partner selection and alliance implementation capabilities, involving a trade off of sorts.

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    File URL: http://www.econ.kyoto-u.ac.jp/projectcenter/Paper/e-09-007.pdf
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    Bibliographic Info

    Paper provided by Graduate School of Economics Project Center, Kyoto University in its series Discussion papers with number e-09-007.

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    Length: 22 pages
    Date of creation: Mar 2010
    Date of revision:
    Handle: RePEc:kue:dpaper:e-09-007

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    Related research

    Keywords: Alliance capability; Partner selection capability; Implementation capability;

    References

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    1. Heimeriks, K.H. & Duysters, G.M., 2003. "Alliance capability as mediator between experience and alliance performance: an empirical investigation into the alliance capability development process," Working Papers, Eindhoven Center for Innovation Studies 03.18, Eindhoven Center for Innovation Studies.
    2. Balakrishnan, Srinivasan & Koza, Mitchell P., 1993. "Information asymmetry, adverse selection and joint-ventures : Theory and evidence," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 20(1), pages 99-117, January.
    3. Rothaermel, Frank T. & Deeds, David L., 2006. "Alliance type, alliance experience and alliance management capability in high-technology ventures," Journal of Business Venturing, Elsevier, vol. 21(4), pages 429-460, July.
    4. Lee, Yikuan & Cavusgil, S. Tamer, 2006. "Enhancing alliance performance: The effects of contractual-based versus relational-based governance," Journal of Business Research, Elsevier, Elsevier, vol. 59(8), pages 896-905, August.
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