International Journal of Strategic Business Alliances (5 papers in press)
The Evolution of Alliance Portfolio Orientation: A Niche Theory Perspective
by Christopher Penney
Abstract: Managers often use their alliance portfolios to learn. Learning generally involves balancing exploration and exploitation. However, within the alliance portfolio context, literature suggests that balancing exploration and exploitation alliances is problematic, and a focus in either exploration or exploitation alliances is more beneficial for learning. However, it is not clear which conditions favor one approach over the other, and how these conditions may change over time. Drawing from niche theory, I offer an evolutionary approach which suggests that, with respect to a focus on either exploration or exploitation alliances, the correct choice depends on the environment. I propose two types of alliance portfolio orientations generalist, where the firm develops general-alliance capabilities and engages in exploration, and specialists, where the firm develops domain-specific capabilities and engages in exploitation. I compare the two orientations strategic implications and theorize how - and why -- an alliance portfolio orientation evolves over time.
Keywords: : alliance portfolios; ambidexterity; alliance portfolio configuration.
DRIVING INNOVATION THROUGH STRATEGIC ALLIANCES: A FRAMEWORK
by Meeta Dasgupta
Abstract: With increasing competition and business uncertainties firms have realized the importance of innovation to improve their competitive strength. Companies have also started realizing that they need to make a shift from acquiring resources to enjoying the benefits of combining their own resources with the assets of others. While the importance of innovation to spur economic revival across the globe cannot be debated, how strategic alliances can aid the innovation journey of organizations is a question. The paper reviews and applies the proposed conceptual framework, highlighting the factors that influence innovation in strategic alliances, to cases of strategic alliances between companies.
Keywords: Strategic Alliances; Innovation; Knowledge flows; Partner Attributes; External Environment; Governance Structure; Nature of Alliance.
Comparative Advantages and Cross-border mergers and acquisitions (M&As): The Case of Chinese M&As in European Countries
by Philippe Gugler
Abstract: The purpose of this study is to scrutinize the links between Chinese cross-border mergers and acquisitions (M&As) and of the export competitiveness of Chinese and of targeted countries industries in which investors are competing. We base our study on the revealed comparative advantages (RCA) of both Chinese exports and recipient countries exports. We develop hypotheses about the level of RCA of China in industries in which the corresponding M&As occur and the level of RCA of the recipient countries. We test our hypotheses on a sample composed of Chinese M&As realized in the 8 main recipient countries registered from 2006-2016 in Europe. With respect to low-cost products, Chinese acquiring firms compete in industries with a high domestic RCA, whereas European target firms compete in industries with a high domestic RCA. With respect to more sophisticated products, Chinese acquiring firms compete in industries with a low domestic RCA and European target firms compete in
industries with a high domestic RCA. Our study suggests the predominance of marketseeking investments in the first case and strategic asset-seeking investments in the second case.
Keywords: Revealed comparative advantages; cross-border M&As; cross-border mergers and acquisitions; Chinese M&As; Chinese mergers and acquisitions; M&As in European countries; mergers and acquisitions in European countries; market-seeking investments; strategic asset-seeking investments.
Achieving a Competitive Edge through Merger: Evidence from Telecoms Industry of Bangladesh
by Jashim Uddin Ahmed, Hafiza Sultana, Nusrat Jahan, Nabila Nisha
Abstract: This research aims to analyze the historic merger between Robi and Airtel, two major telecom operators in a developing country, Bangladesh. There were six operators in the telecoms industry with Grameenphone as the dominant leader. Amid the fierce competition and price war, the merger has taken place and formed consolidated Robi Axiata, with the goal of developing the number one cellular network with widest coverage and the second largest operator of the country. The estimated outcomes of the successful merger are higher profitability and market share, increased subscriber base, higher economies of scale, financial stability, improved spectrum, extensive sale and distribution channels, etc., which will ultimately lead to a sustainable competitive advantage. However, while Robi Axiata has become the second largest telecoms operator, it has a lot to accomplish in order to improve financial performance and develop a competitive edge in the long-term. In addition, the gains from the merger are expected to be realized by the stakeholders, companies, industry, and customers. Currently the consolidation has started a new era in Bangladesh economy and its actual benefits can only be verified in the future. With profound qualitative analysis, the study offers valuable managerial and policy implications.
Keywords: Bangladesh; merger and acquisition; Robi Axiata; Airtel; mobile; telecoms.
A NEURAL NETWORK ANALYSIS OF THE INFLUENCE OF STRATEGIC AND RELATIONAL MOTIVATION ON ACQUISITION OF INTER-ORGANIZATIONAL NETWORK TIES IN THE GHANAIAN AUTOMOBILE CLUSTER
by Hu Xuhua, Michael Addai, Bertha Ada Danso, Chosniel Elikem Ocloo
Abstract: The acquisition of inter-organisational network ties remains a functional pre-requisite in the survival of a business venture. We sought in this study, to explore the extent to which strategy-driven motivational factors and relational motivational factors significantly influence acquisition of inter-organisational network ties. Our data was procured from a sample of 150 managers and owners of small scale automobile firms recruited from an automobile cluster in Ghana. We adapted but modified a feed-forward neural network model where data propagate along the connections in the direction from the network inputs to the network outputs from the extant literature. Our results showed a complementary relationship between the effects of interactions that precede the development of cooperation among organizations and strategic forces which involve the deployment of a firms core competencies. We proposed the need for automobile SMEs in Ghana to harness potential sources of competitive strength such as previous experience of working together with others.
Keywords: strategic motivation; relational motivation; network ties; acquisition; inter-organisational.