How outside opportunities affect alliance governance: evidence from the biotechnology industry
by Jongwook Kim
International Journal of Learning and Change (IJLC), Vol. 10, No. 2, 2018

Abstract: In complex interfirm exchange relationships like alliances, firms that invest in relation-specific assets are likely to devise governance mechanisms, most prominently hierarchical control, to safeguard against various exchange hazards. However, if investing in relation-specific assets leads the focal alliance firm to discover new opportunities outside of the exchange relationship that can be exploited independent of its partner firm, then instead of seeking more control over the alliance, we may see such firms' incentives for seeking control over the alliance to be weakened. These different conditions are contrasted and explored empirically in the biotechnology alliance setting. Understanding the role of outside opportunities as an important driver of alliance governance can help to integrate the governance literature and the capabilities literature.

Online publication date: Tue, 03-Apr-2018

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Learning and Change (IJLC):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com