SURVIVAL OF BUSINESSES USING COLLABORATIVE RELATIONSHIPS TO COMMERCIALIZE COMPLEX GOODS

SURVIVAL OF BUSINESSES USING COLLABORATIVE RELATIONSHIPS TO COMMERCIALIZE COMPLEX GOODS Authors with many theoretical and managerial perspectives argue that businesses commercializing technologically complex goods benefit when they collaborate closely with other businesses. Collaboration is viewed as a means for businesses to overcome competency limitations and to achieve the close configuration of components required for complex goods. We predict that collaborative relationships often assist businesses to produce complex goods, but that the relationships might also cause problems for the collaborating businesses. We find that firms using development‐oriented and marketing‐oriented collaborative relationships in the hospital software systems industry are less likely to shut down than businesses that follow independent approaches when the environment changes gradually, but businesses using collaborative relationships are sometimes susceptible to being acquired by other firms. Following a sudden environmental shock, businesses with collaborative relationships for activities central to the shock became more likely to shut down, while businesses with collaborative relationships for activities outside the focus of the shock became more likely to survive. The study critically evaluates and tests the widely stated but little‐tested argument that interfirm collaboration is usually beneficial. The results address the issue of whether organizational choices affect comparative business performance. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Strategic Management Journal Wiley

SURVIVAL OF BUSINESSES USING COLLABORATIVE RELATIONSHIPS TO COMMERCIALIZE COMPLEX GOODS

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Publisher
Wiley
Copyright
Copyright © 1996 John Wiley & Sons, Ltd.
ISSN
0143-2095
eISSN
1097-0266
DOI
10.1002/(SICI)1097-0266(199603)17:3<169::AID-SMJ801>3.0.CO;2-#
Publisher site
See Article on Publisher Site

Abstract

Authors with many theoretical and managerial perspectives argue that businesses commercializing technologically complex goods benefit when they collaborate closely with other businesses. Collaboration is viewed as a means for businesses to overcome competency limitations and to achieve the close configuration of components required for complex goods. We predict that collaborative relationships often assist businesses to produce complex goods, but that the relationships might also cause problems for the collaborating businesses. We find that firms using development‐oriented and marketing‐oriented collaborative relationships in the hospital software systems industry are less likely to shut down than businesses that follow independent approaches when the environment changes gradually, but businesses using collaborative relationships are sometimes susceptible to being acquired by other firms. Following a sudden environmental shock, businesses with collaborative relationships for activities central to the shock became more likely to shut down, while businesses with collaborative relationships for activities outside the focus of the shock became more likely to survive. The study critically evaluates and tests the widely stated but little‐tested argument that interfirm collaboration is usually beneficial. The results address the issue of whether organizational choices affect comparative business performance.

Journal

Strategic Management JournalWiley

Published: Mar 1, 1996

References

  • Strategic assets and organizational rent
    Amit, Amit; Schoemaker, Schoemaker
  • The nature of the firm
    Coase, Coase
  • The effects of strategic technology alliances on company performance
    Hagedoorn, Hagedoorn; Schakenraad, Schakenraad
  • Joint ventures and competitive strategy
    Harrigan, Harrigan
  • Innovation and cooperation: Implications for competition and antitrust
    Jorde, Jorde; Teece, Teece
  • Community structure as interorganizational linkages
    Laumann, Laumann; Galaskiewicz, Galaskiewicz; Marsden, Marsden
  • Changing generic strategies: Likelihood, direction, and performance implications
    Zajac, Zajac; Shortell, Shortell

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