The Decision to Use Alliances as Corporate Entrepreneurship: The Role of Resources and Skills

Abstract

This aim of this research is to analyse the role of firm resources and skills in the decision to cooperate as a method for developing entrepreneurial activity. We use a sample of 967 entrepreneurial operations undertaken between 2000 and 2004 by 323 EU-15 companies. Results suggest that skills are more important than resources when choosing how to undertake an entrepreneurial activity. While experience in cooperation and possession of technological resources make the choice of an alliance more probable, experience in entrepreneurial activities and possession of physical resources may lead the company to opt for other alternatives.

Inspired or Foolhardy: Sensemaking, Confidence and Entrepreneurs’ Decision-Making

“…O'Leary (2011) describes this as judgement bias and a tendency to use intuition, especially when they lack experience (Soriano and Castrogiovanni 2012). Indeed, Montoro-Sánchez et al (2009) suggest that such intuition may be more important than resources in how decisions are informed. Nonetheless, Tjosvold et al (2013) suggest that creating solutions in response to emerging conditions remains a key challenge for all decision-makers.…”

Interfirm Alliances: A Collaborative Entrepreneurship Perspective

“…In this context, a growing number of firms depend on alliance formation to access the necessary resources to reach their strategic objectives (Bragge et al, 2007;Urbano & Yordanova, 2008). The investigation carried out shows that alliances are used as a way of filling gaps in firms' resources (Montoro-Sánchez et al, 2009;Zacharakis, 1998).…”

“…Behind alliances there is the objective of attaining or sharing valuable resources when these cannot be obtained through market exchanges or through fusions or acquisitions. Strategic alliances emerge when firms in vulnerable strategic positions need new resources, or when strong, very well-positioned firms capitalise on their resources to create opportunities for cooperation (Montoro-Sánchez et al, 2009). …”

“…In this sense, interfirm alliances can help large and small firms be more entrepreneurial (Ireland et al, 2006;Montoro-Sánchez et al, 2009). In this paper, an interfirm alliance is defined as an organisational arrangement, through which two or more firms acting in isolation manage to overcome their resource constraints.…”

Domestic and International Corporate Entrepreneurship through Alliances

“…In recent years, however, alliances have emerged as the method of choice to achieve corporate entrepreneurship (Ireland, Hitt, & Webb, 2006). In the current competitive business environment, a growing number of entrepreneurial firms rely on strategic alliances to capture the assets they need to achieve their strategic objectives (Bragge, Merisalo‐Rantanen, Nurmi, & Tanner, 2007; Montoro‐Sánchez, Ortiz‐de‐Urbina‐Criado, & Romero‐Martínez, 2009). Examining alliances in the context of entrepreneurship presents new avenues of research (Alvarez, Ireland, & Reuer, 2006).…”