Abstract
This study explores how market conditions in nascent and growth stage markets affect firms’ alliance portfolio by tracing 6 entrepreneurial firms during the nascent to growth stage of the wireless gaming market. The findings show that nascent markets are advantageous for entrepreneurial firms to form ties, even exclusive ones, with prominent partners. During market growth, however, lower uncertainty and higher competition cause entrepreneurial firms to lose ties as partners downsize their alliance portfolio or enter the market directly. On the flipside, firms with already strong ties to multiple prominent partners during market growth receive greater financial resources and freedom to further strengthen their portfolio and performance, while firms with weak ties to few prominent partners fail to do so.
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