Resource title

Experience trajectories, governance design, and the performance of high-tech alliances (RV of 99/22/SM)

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This paper extends evolutionary economics to the alliance context and examines the roles that experience accumulation processes play in explaining the variation in high-tech alliances’ performance. The authors differentiate three alliance experience trajectories - partner-specific experience, technology-specific experience, and general collaborative experience - and suggest that experience accumulation at the parent firm level influences the extent to which alliances result in knowledge accumulation, create new opportunities, and enable parent firms to achieve their objectives. They also consider how governance design choices at the transaction level shape the effectiveness of interorganizational routizination processes. Based on a sample of 144 biotechnology alliances, they find that only partner-specific experience has a positive impact on alliance performance, and that this effect is due to the interaction between partner-specific experience and the alliance’s governance design. The authors interpret these results to support the role of inter-firm coordination and cooperation routines in enhancing the effectiveness of collaborative agreements, particularly non-equity alliances that tend to lack formal coordination and control mechanisms.

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en

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application/pdf

Resource resource URL

http://flora.insead.edu/fichiersti_wp/inseadwp2001/2001-62.pdf

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Copyright INSEAD. All rights reserved