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Alliance formation propensity in a global industry network

Author

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  • Farok J. Contractor
  • Sam Beldona
  • Changsu Kim

Abstract

What factors determine which firms in an industry ally with each other? This paper analyses a sample of 497 alliances, in ten countries, in the global pharmaceutical sector where alliances are prolific and central to corporate strategy. The results suggest that direct technological commonality (measured by cross patent citations between each pair), indirect commonality (measured by the degree to which they share common third-party technology sources), and prior alliance ties statistically explain the propensity that any two firms in a network will form an alliance. We also explore cross-border effects to see if companies originating in different nations are more likely, or less likely, to form alliances because of their national origins.

Suggested Citation

  • Farok J. Contractor & Sam Beldona & Changsu Kim, 2011. "Alliance formation propensity in a global industry network," International Journal of Human Rights and Constitutional Studies, Inderscience Enterprises Ltd, vol. 2(4), pages 245-270.
  • Handle: RePEc:ids:ijhrcs:v:2:y:2011:i:4:p:245-270
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    Citations

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    Cited by:

    1. Yeniyurt, Sengun & Carnovale, Steven, 2017. "Global supply network embeddedness and power: An analysis of international joint venture formations," International Business Review, Elsevier, vol. 26(2), pages 203-213.
    2. Anupama Phene & Stephen Tallman, 2014. "Knowledge Spillovers and Alliance Formation," Journal of Management Studies, Wiley Blackwell, vol. 51(7), pages 1058-1090, November.
    3. Pun, Hubert & Ghamat, Salar, 2016. "The value of partnership under competition: When competitors may be R&D joint-venture and supply-chain partners for a critical component," International Journal of Production Economics, Elsevier, vol. 177(C), pages 1-11.

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