Determinant of the asymmetric alliances in Taiwan-based semiconductor (SC) firms: Influences of technological network position and dyadic firm resources

Abstract

This study examines the effect of network-based technology position and dyadic firm attributes on the formation of asymmetric alliances from the perspective of Social Network Analysis (SNA) approach. Drawing on data from 141 Taiwan-based semiconductor (SC) firms, which formed inter-firm alliances during 1998-2002, this study finds that most small- and medium-sized firms in the sample are keenly interested in forming asymmetric strategic alliances in order to gain complementary strategic resources, and their particular interest or ability in forming asymmetric alliances are affected by their inequivalent technological network positions and complementary firm capabilities in terms of size, performance, and financial structure. The results suggest that a synthesis of network theory and organization theory provides a better explanation for the existence of asymmetric alliances in the SC industry in Taiwan. Key words: Structural equivalence, strategic alliance, network, firm capability.