Partner Substitutability, Alliance Network Structure, and Firm Profitability in the Telecommunications Industry

When the Social Structure Overshadows Competitive Incentives: The Effects of Network Embeddedness on Joint Venture Dissolution

“…This term captures the likelihood of a given dyad being observed in our sample of ties at risk of dissolution; its inclusion in the analysis of tie dissolution eliminates the potential for specification error. A similar approach has been used in the examination of alliance formation by previously connected firms (Li & Rowley, 2002) and of the effects of network participation on organizational profitability (Bae & Gargiulo, 2004).…”

The contingent effect of state participation on the dissolution of international joint ventures: A resource dependence approach

“…We use the concepts of resource hierarchies and resource profiles to develop theoretical arguments geared towards identifying the survival consequences of resource matching between IJV partners and to explore the contingent nature of such consequences. We focus our analysis on the dependence of the foreign partner in the IJV following prior research that has stressed the particular role of foreign partners' dependence for IJV instability (Inkpen & Beamish, 1997) and argued that foreign partners are comparatively more capable of selecting an alternative partner to absorb external constraints (Bae & Gargiulo, 2004).…”

“…First, our theoretical arguments are only focused on the dependence of the foreign partner in the IJV. We chose to focus on the dependence of the foreign over the local partner in the IJV based on the premise that foreign partners in an IJV are comparatively more capable than local partners of selecting an alternative mechanism to absorb external constraints, e.g., the dissolution of the IJV and the establishment of a new one with a different partner (Bae & Gargiulo, 2004). …”

Alliances, Rivalry, and Firm Performance in Enterprise Systems Software Markets: A Social Network Approach

“…The reasoning behind this argument is that although alliances between large and small firms can create overall value to the alliance, value appropriation becomes the forte of the larger firm due to bargaining power. So evidently it is critical to distinguish between the network resources from alliances and the relative power of partners in that portfolio (Bae and Gargiulo 2004). Others (Hagedoorn and Schakenraad 1994, p. 300) have also suggested that large firms are in a better position to extract value from alliances where, "although firms of all sizes will occasionally be engaged in a process of restructuring, in particular large firms are more suited to channel their restructuring activities through joint ventures and other forms of interfirm cooperation.…”