Extra-and Intra-Alliance Behavioral Moderators of Success in Alliances with Competitors

Abstract

This study examines the relationship between the degree of competition among alliance members and alliance success. Adopting the competitive tension perspective on alliances we examine how several extra- and intra-alliance behavioral factors moderate this relationship in the context of US venture capital syndicates. We find that competitive similarity of partners decreases chances of alliance success, but performance below historical and social aspiration levels, higher relative “weight” of alliance, and social proximity of alliance members to other firms in the industry attenuate this effect and can act as switches of collaborative success. We also find that relational embeddedness of competitors and presence of distinct alliance leadership positively affect success of alliances with competitors.