The Impact Of Liberalization On Cooperative Strategies

Abstract

This paper deals with the diffusion of cooperative strategies under uncertainty conditions. Starting from a Resource Dependence approach, we analyze the impact of liberalization on alliance formation in the public utilities industry in Italy between 1999 and 2001. The study is based on a longitudinal analysis conducted using social network analysis methods. Results show a growing diffusion of strategic alliances both at aggregate level and per different classes of alliances, besides a tendency of local public utilities to strengthen ties with partners of previous alliances. Based on these findings, we highlights some limits of Resource Dependence approach in explaining the diffusion of strategic alliances, suggesting an integration with the market power approach and the resource based view.