Managing the Partners in Strategic Alliances by T. K. Das;

Author:T. K. Das; [Неизв.]
Language: eng
Format: epub
Publisher: Information Age Publishing
Published: 2021-06-30T15:57:03+00:00

Chapter 8

The Influence of Alliance and Partner Characteristics on Tensions in Contractual Alliances in Technologically Turbulent Environments

Diana Marie De Silva

Matthias Vermeiren

Ernst Verwaal

Abstract

The chapter explores the behaviors of partners in technologically turbulent environments that influence the strategic alignment in contractual alliances. In the context of high technological turbulence, the competitive landscape of a firm and its partners in an alliance changes, which requires them to adapt their strategies in order to regain fit. However, little is known about how partner firms in alliances individually and collectively strategize in a turbulent environment. We investigate competing views in the literature and offer propositions which explain how a strategy of an alliance to adapt is contradicted by the partners’ tendency to protect the individual interests during turbulent times. Building on the resource-based view and dynamic capabilities theory, we look at alliance and partner characteristics and behaviors that can be associated with their strategic decisions. The chapter reports the findings of a qualitative multiple case study of 10 contractual alliances. The investigation focuses on behavioral, structural, and psychological tensions potentially leading to strategic misalignment. In the final section, we offer solutions to manage the predicted partner behaviors to prevent strategic misalignment and alliance instability.

Introduction

Recent decades have shown an exponential increase of technological innovations which spread quickly across global markets. This high rate of technological turbulence “arises from changes in the underlying technologies of products or services and their (increasing) rates of obsolescence” (Kandemir, Yaprak, & Cavusgil, 2006, p. 330). This will have a profound influence on how firms do business as the competitive position of a firm is more likely affected, and the competitive landscape of a firm and its competitors is more easily reshaped under conditions of high technological turbulence (Jaworski & Kohli, 1993). Technological turbulence leads to modifications in the dominant design and the alteration of industry standards (Chen, Li, Chen, & Ou, 2018; Kandemir et al., 2006; Tushman & Anderson, 1986) and firms are under pressure to continuously innovate because earlier developed knowledge and technology are not necessarily useful in new market conditions (Amankwah-Amoah, 2017; Chen et al., 2018). Under technological turbulence, alliances are particularly important as they can aid to gain access to new knowledge, pool resources, accelerate time to market, and reduce risk (Anand, Oriani, & Vassolo, 2010; Chatterjee, 2004; Jaworski & Kohli, 1993). The resource-based view (Barney, 1991; Grant, 1991; Wernerfelt, 1984) is appropriate for looking into the formation of strategic alliances because firms often use alliances to gain access to strategic and valuable resources they do not own, but also to protect and leverage their own valuable resources (Das & Teng, 2000a). More particularly relevant in environments of rapid technological change, the dynamic capabilities theory builds on the resource-based view that focus on a firm’s access to complementary assets (Teece, Pisano, & Shuen, 1997) and the value captured from innovations (Anand et al., 2010). Particularly for the case of small firms, the study of Rashidirad, Soltani, and Salimian (2015) suggest that a sustained competitive advantage does not

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.