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Post-formation dynamics in strategic alliances

Published on Feb 1, 2002in Strategic Management Journal
· DOI :10.1002/smj.214
Jeffrey J. Reuer42
Estimated H-index: 42
(Max M. Fisher College of Business),
Maurizio Zollo28
Estimated H-index: 28
(Ad: INSEAD),
Harbir Singh43
Estimated H-index: 43
(UPenn: University of Pennsylvania)
Abstract
This paper investigates the occurrence and determinants of post-formation governance changes in strategic alliances, including alterations in alliances' contracts, boards or oversight committees, and monitoring mechanisms. We examine alliances in the biotechnology industry and find that firms' unique alliance experience trajectories affect the likelihood of such ex post adjustments in these partnerships. Transactional features such as the alliance's scope, its division of labor, and the relevance of the collaboration to the parent firm also bear upon alliances' dynamics. We discuss the implications of these findings and how they complement prior research focusing on alliance design or termination at opposite ends of the alliance life cycle. Copyright © 2002 John Wiley & Sons, Ltd.
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