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Alliances as collaborative regimes An institutional based explanation of interfirm collaboration

Alliances as collaborative regimes An institutional based explanation of interfirm collaboration Purpose – The management and strategy literature continues to show that many companies now rely on alliances for their long‐term success. This paper seeks to explain why some industries have an over‐representation of inter‐firm strategic alliances, relative to others. Design/methodology/approach – A theory of group behavior is used to show that an inter‐organizational phenomenon, notably the interaction of convergent expectations, including shared patterns of behavior, beliefs and mindsets, are partially responsible for the disproportionate use of alliances in some industries relative to others. The theory of group behavior presented draws mainly on conceptual ideas from regime and new institutional theory. Findings – The framework suggests that the presence of industry‐embedded factors, including shared mindsets, creates the conditions that transform the strategic interests and behavior of individual firms into a macro phenomenon that diffuses across an industry. Industry developed shared mindsets in turn provide the conditions for trust to endure, cooperation instead of opportunism to prevail, and lower transaction costs, all critical elements for alliance formation. Practical implications – The research presented here shows that industry‐level factors may be an important factor for determining the incidence and perhaps the performance of value‐creating alliances. Originality/value – This paper extends our understanding of strategic alliances as a source of a firm's competitiveness and fulfills a need for a greater understanding of the over‐representation of strategic alliances in some industries, relative to others. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Competitiveness Review: An International Business Journal incorporating Journal of Global Competitiveness Emerald Publishing

Alliances as collaborative regimes An institutional based explanation of interfirm collaboration

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/lp/emerald-publishing/alliances-as-collaborative-regimes-an-institutional-based-explanation-6atJYilzer
Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
1059-5422
DOI
10.1108/10595421111106238
Publisher site
See Article on Publisher Site

Abstract

Purpose – The management and strategy literature continues to show that many companies now rely on alliances for their long‐term success. This paper seeks to explain why some industries have an over‐representation of inter‐firm strategic alliances, relative to others. Design/methodology/approach – A theory of group behavior is used to show that an inter‐organizational phenomenon, notably the interaction of convergent expectations, including shared patterns of behavior, beliefs and mindsets, are partially responsible for the disproportionate use of alliances in some industries relative to others. The theory of group behavior presented draws mainly on conceptual ideas from regime and new institutional theory. Findings – The framework suggests that the presence of industry‐embedded factors, including shared mindsets, creates the conditions that transform the strategic interests and behavior of individual firms into a macro phenomenon that diffuses across an industry. Industry developed shared mindsets in turn provide the conditions for trust to endure, cooperation instead of opportunism to prevail, and lower transaction costs, all critical elements for alliance formation. Practical implications – The research presented here shows that industry‐level factors may be an important factor for determining the incidence and perhaps the performance of value‐creating alliances. Originality/value – This paper extends our understanding of strategic alliances as a source of a firm's competitiveness and fulfills a need for a greater understanding of the over‐representation of strategic alliances in some industries, relative to others.

Journal

Competitiveness Review: An International Business Journal incorporating Journal of Global CompetitivenessEmerald Publishing

Published: Jan 25, 2011

Keywords: Strategic alliances; Group behaviour; Organizational theory; Economic sectors

References

  • Trust as sensemaking: the microdynamics of trust in interfirm alliances
    Adobor, H.
  • Evolution of Cooperation
    Axelrod, R.
  • A theory of global strategic alliances: the case of the global auto industry
    Burgers, W.; Hill, C.; Kim, C.
  • Social networks and the adverse selection problem in agency relationships
    Dahlstrom, R.; Ingram, R.
  • Industry influences on strategy reformulation
    Huff, A.
  • Capturing value from alliance portfolios
    Lavie, D.
  • Airline deregulation: factors affecting the choice of firm political strategy
    Marcus, A.; Goodman, R.
  • Effectiveness of horizontal strategic alliances in technologically uncertain environments: are trust and commitment enough?
    Perry, M.; Sengupta, S.; Krapfel, R.
  • Institutions and Organizations
    Scott, R.
  • Alliance strategy and the fall of Swissair
    Suen, W.

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