Asymmetric performance: the market share impact of scale and link alliances in the global auto industry

“…Finally, note that alliances not only allow firms to gain access to the resources of partnering firms, but also provide opportunities to learn from partners and leverage the new knowledge beyond the scope of their alliance (see Dussauge et al 2004 for a review). These learning opportunities could motivate partnering firms to commit more resources to their alliance.…”

Section: Our Purposementioning

confidence: 99%

Cross-Function and Same-Function Alliances: How Does Alliance Structure Affect the Behavior of Partnering Firms?

Amaldoss

Staelin

2010

Management Science

View full text Add to dashboard Cite

F irms collaborate to develop and deliver new products. These collaborations vary in terms of the similarity of the competencies that partnering firms bring to the alliance. In same-function alliances, partnering firms have similar competencies, whereas in cross-function alliances, partners have very different competencies. On examining managers' view of these alliances, we find that, on average, same-function alliances are expected to perform better than cross-function alliances, holding fixed the level of inputs. A game-theoretic analysis shows that this apprehension about cross-function alliances is consistent with a Pareto-inferior equilibrium. A Pareto-superior equilibrium, however, suggests that partners in cross-function alliances may invest more in their alliances than those in same-function alliances. It is also often believed that increasing the number of partnering firms is not conducive for collaborative effort. Our analysis shows that this belief is correct for same-function alliances, but not for cross-function alliances. We test these equilibrium predictions in an experiment where we exogenously vary the type of alliance and the number of partnering firms. The experimental results lend support for the Pareto-superior equilibrium. Partners in cross-function alliances invested more than their counterparts in same-function alliances, and this difference in investment levels increased with the number of partnering firms. We extend our model to consider alliances where firms have an opportunity to learn from their partners and later leverage this knowledge outside the scope of their alliance. Though such learning increases the resources committed by alliance partners in the learning phase, it decreases investment in the subsequent competition and also dampens the overall investment across the two stages. In addition, an increase in interalliance competition decreases investments in the focal alliance but increases investment in the competition outside the scope of the alliance.

show abstract

“…Parceria pode ser definida como uma forma de relacionamento entre empresas, que optam por realizar uma operação conjunta, compartilhando recursos e conhecimentos ao invés de operarem individualmente (Dussauge et al, 2004).…”

Section: Parceriasunclassified

Alianças em projetos complexos: um estudo de projetos do tipo EPC

Madureira

Carvalho

2015

Prod.

View full text Add to dashboard Cite

This study aims to identify critical success factors for complex projects developed in alliances between companies. The theoretical framework is grounded in concepts related to projects and partnerships that address aspects related to motivation, characterization and dynamic operation. The exploratory research was conducted in an engineering services organization, mixing methods of qualitative and quantitative research. Data were gathered from 11 projects in partnerships via interviews performed with 43 managers involved in such projects. The combination of the literature review and the field research evidence highlighted some critical success factors in the projects of Engineering, Procurement and Construction (EPC) that were developed in the alliances. The results indicate five factors that were strongly correlated: cooperation, trust, information exchange, synergy and degree of integration. Furthermore, from 17 factors, 12 were significantly related to the projects' results in some of the dimensions studied.

show abstract

Asymmetric performance: the market share impact of scale and link alliances in the global auto industry

Cited by 103 publications

References 38 publications

Applications virtual special issue: Practical advice on how to unlock value from your alliances

Applications virtual special issue: Practical advice on how to unlock value from your alliances

Cross-Function and Same-Function Alliances: How Does Alliance Structure Affect the Behavior of Partnering Firms?

Alianças em projetos complexos: um estudo de projetos do tipo EPC

Contact Info

Product

Resources

About