Resource title

Partner substitutability and the structure of interfirm relations

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Resource description

This paper explores the effects of partner substitutability and alliance network structure on organizational growth. Using data from alliances among firms in the US telecommunications industry, the authors show that, while firms are expected to benefit from the exclusive resources brought in by unique, non-substitutable alliance partners, those benefits will be offset by the difficulties that firms face in negotiating their exchanges with those partners. The structure of their alliance network helps firms to mitigate the pitfalls of having to negotiate with unique partners. Rather than reaping advantage from being brokers between disconnected non-substitutable partners, firms facing such partners appear to benefit from being part of a closely-knit network that created mutual bonds of obligations and trust.

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Resource language

en

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application/pdf

Resource resource URL

http://flora.insead.edu/fichiersti_wp/inseadwp2003/2003-51.pdf

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Copyright INSEAD. All rights reserved