One more only if it is one of us. The number of partners and the stock market reaction to domestic and international alliance formation in EU telecom firms
In this paper, we analyze the interaction between two dimensions of strategic alliances whose real impact on the potential value of an alliance has not yet been highlighted: the number of partners and the direct competition among them. Building on the resource-based view, as well as on the relational view of alliances, we argue that increases in the number of partners are positively valued by the stock market when the alliance is formed by competing firms that belong to different countries. Multiparty alliances are thus positively valued when they allow a quick internationalization by affording access to resources owned by competing firms from different countries. An empirical test of stock market reaction to alliances announced by European telecom firms between 1986 and 2001 has confirmed our hypotheses.
Volume (Year): 16 (2007)
Issue (Month): 1 (February)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/bibliographic|
References listed on IDEAS
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.:
- Vickers, John, 1985. "Pre-emptive patenting, joint ventures, and the persistence of oligopoly," International Journal of Industrial Organization, Elsevier, vol. 3(3), pages 261-273, September.
- Kathleen Fuller & Jeffry Netter & Mike Stegemoller, 2002. "What Do Returns to Acquiring Firms Tell Us? Evidence from Firms That Make Many Acquisitions," Journal of Finance, American Finance Association, vol. 57(4), pages 1763-1793, 08.
- Harry G Barkema & Freek Vermeulen, 1997. "What Differences in the Cultural Backgrounds of Partners Are Detrimental for International Joint Ventures?," Journal of International Business Studies, Palgrave Macmillan, vol. 28(4), pages 845-864, December.
- Jean-Fran�ois Hennart & Ming Zeng, 2002. "Cross-Cultural Differences and Joint Venture Longevity," Journal of International Business Studies, Palgrave Macmillan, vol. 33(4), pages 699-716, December.
- 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.
- Erin Anderson & Hubert Gatignon, 1986. "Modes of Foreign Entry: A Transaction Cost Analysis and Propositions," Journal of International Business Studies, Palgrave Macmillan, vol. 17(3), pages 1-26, September.
- John H Dunning, 1995. "Reappraising the Eclectic Paradigm in an Age of Alliance Capitalism," Journal of International Business Studies, Palgrave Macmillan, vol. 26(3), pages 461-491, September.
- Oh, Jong-Geun, 1996. "Global strategic alliances in the telecommunications industry," Telecommunications Policy, Elsevier, vol. 20(9), pages 713-720, November.
- Balakrishnan, Srinivasan & Koza, Mitchell P., 1993. "Information asymmetry, adverse selection and joint-ventures : Theory and evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 20(1), pages 99-117, January.
- Seung Ho Park & Michael V. Russo, 1996. "When Competition Eclipses Cooperation: An Event History Analysis of Joint Venture Failure," Management Science, INFORMS, vol. 42(6), pages 875-890, June.
- Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan, vol. 19(3), pages 411-432, September.
- Geert Duysters & John Hagedoorn & Charmianne Lemmens, 2003.
"The effect of alliance block membership on innovative performance,"
Revue d'Économie Industrielle,
Programme National Persée, vol. 103(1), pages 59-70.
- Duysters, G.M. & Hagedoorn, J. & Lemmens, C.E.A.V., 2002. "The Effect of Alliance Block Membership on Innovative Performance," Working Papers 02.06, Eindhoven Center for Innovation Studies.
- Brown, Stephen J. & Warner, Jerold B., 1985. "Using daily stock returns : The case of event studies," Journal of Financial Economics, Elsevier, vol. 14(1), pages 3-31, March.
- MB Sarkar & S Tamer Cavusgil & Preet S Aulakh, 1999. "International Expansion of Telecommunication Carriers: The Influence of Market Structure, Network Characteristics, and Entry Imperfections," Journal of International Business Studies, Palgrave Macmillan, vol. 30(2), pages 361-381, June.
- García-Canal, Esteban & Duarte, Cristina López & Criado, Josep Rialp & Llaneza, Ana Valdés, 2002. "Accelerating international expansion through global alliances: a typology of cooperative strategies," Journal of World Business, Elsevier, vol. 37(2), pages 91-107, July.
- Park, Seung Ho & Kim, Dongcheol, 1997. "Market valuation of joint ventures: Joint venture characteristics and wealth gains," Journal of Business Venturing, Elsevier, vol. 12(2), pages 83-108, March.
- Jeffrey M. Wooldridge, 2003. "Cluster-Sample Methods in Applied Econometrics," American Economic Review, American Economic Association, vol. 93(2), pages 133-138, May.
- Changqi Wu & K.C. Wei, 1998. "Cooperative R&D and the Value of the Firm," Review of Industrial Organization, Springer, vol. 13(4), pages 425-446, August.
- Su, Han Chan & Kensinger, John W. & Keown, Arthur J. & Martin, John D., 1997. "Do strategic alliances create value?," Journal of Financial Economics, Elsevier, vol. 46(2), pages 199-221, November.
- repec:dgr:tuecis:0206 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:16:y:2007:i:1:p:83-108. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.