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Resource Dependence and Power-Balancing Operations in Alliances: The Role of Market Redefinition Strategies

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  • Paul Chiambaretto

    (i3-CRG - Centre de recherche en gestion i3 - X - École polytechnique - Université Paris-Saclay - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique, MRM - Montpellier Research in Management - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier)

Abstract

This article studies power imbalances in alliances. More precisely, we seek to understand how – and under what circumstances – firms can leverage market redefinition strategies to change the structure of their markets and to reduce the bargaining power of actual or potential partners. Based on resource dependence theory, our analysis examines the causes of disproportionate power in alliances and describes various power-balancing operations that can be implemented to reduce dependence. In previous research, the presence of alternative sources that might reduce resource dependence has been given exogenously, and the set of power-balancing operations has been rather limited. Based on the alliance literature, the bargaining power literature and the market redefinition literature, we elaborate a theoretical framework to study the extent to which firms can leverage market redefinition strategies to shape the structure of their markets, in general, and reduce the bargaining power of partners, in particular. We illustrate our theoretical framework by means of multiple case studies and discuss our conclusions. Focusing on air-rail intermodal strategies, we emphasise that firms can proactively redesign their market boundaries to find new partners. These market redefinition strategies reduce dependence on powerful partners in the traditional market and offer new strategic partnership options for firms. In addition, we note that processes can be implemented to increase the quality offered by these new substitutes. Finally, we elucidate several theoretical and managerial implications regarding the role of market redefinition strategies in alliance development.

Suggested Citation

  • Paul Chiambaretto, 2015. "Resource Dependence and Power-Balancing Operations in Alliances: The Role of Market Redefinition Strategies," Post-Print hal-02009509, HAL.
    • Handle: RePEc:hal:journl:hal-02009509
    DOI: 10.3917/mana.183.0205
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    Cited by:

    1. Paul Chiambaretto & Ulrich Wassmer, 2019. "Resource utilization as an internal driver of alliance portfolio evolution: The Qatar Airways case (1993-2010)," Post-Print hal-02517645, HAL.
    2. Nguyen, Hang T. & Ross, William T. & Pancras, Joseph & Phan, Hieu V., 2020. "Market-based drivers of cobranding success," Journal of Business Research, Elsevier, vol. 115(C), pages 122-138.
    3. Jiang, Changmin & D'Alfonso, Tiziana & Wan, Yulai, 2017. "Air-rail cooperation: Partnership level, market structure and welfare implications," Transportation Research Part B: Methodological, Elsevier, vol. 104(C), pages 461-482.
    4. Danik Lidia & Kowalik Izabela, 2020. "Network knowledge gathering of international new ventures, approaches, and preconditions," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 56(3), pages 255-274, September.
    5. Thomas Roulet, 2019. "Les Evaluations Sociales en Stratégie : Légitimité, Réputation, Statut, Stigmate et Cie," Post-Print hal-01970557, HAL.

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