RESOURCE COMMITMENT AND PARTNER SELECTION IN ASYMMETRIC CORPORATE-STARTUP COLLABORATIONS

Abstract

Startups and established firms collaborate in order to leverage complementary resources and innovative capabilities to sustain a competitive advantage. By forming alliances, startups are able to mitigate challenges connected to their smallness and lack of legitimacy. However, the underlying criteria by which startups screen and select potential collaboration partners in such asymmetric collaborations remain poorly understood. This paper examines the dynamics of these asymmetric collaborations, exploring the motives, selection criteria, and the willingness of startups to partner from a resource-based perspective. We conduct a conjoint experiment to examine the relationship between diverse resource commitment types and startups’ willingness to partner. The findings of the study confirm a strong influence of financial, technological, managerial, and physical resources in a startup’s decision-making process regarding partner selection. Notably, the attractiveness of a partner was found to diminish when they possess a similar market portfolio, potentially fostering future competition. Consequently, startups must implement effective control and protection mechanisms to prevent opportunistic behaviours from collaboration partners operating in the same market. To contribute to the existing literature, we adopt a resource-based theoretical lens that emphasises the pivotal role of capabilities in a startup’s decision-making process and demonstrates their influential role in forging successful collaborations with established partners. Ultimately, our findings enhance the understanding of the partner selection criteria, offering valuable insights for new ventures seeking beneficial partnerships at the early stages of a collaboration.