Alliance Capability Research Articles

Unveiling the synergy: entrepreneurial effectuation and alliance-driven SME diversification

PurposeInternationalisation is a complex and uncertain process for small and medium-sized enterprises (SMEs), characterised by challenges such as limited resources, lack of international experience and uncertainty in foreign markets. This study aims to explore the impact of entrepreneurial effectuation on the diversification of products and market expansion. Additionally, it examines the mediating role of alliance capabilities in this relationship.Design/methodology/approachThis study developed five hypotheses based on an extensive and relevant literature review. Data were collected using nonprobability judgemental and snowball sampling techniques from 202 software exporting firms in Bangladesh to measure the relationship. Data collected from the survey were then analysed using partial least squares-structural equation modelling.FindingsThe results of this study show that all five hypotheses developed in this study are supported. This study found a positive impact of entrepreneurial effectuation on product and market diversification. Study results also show that alliance capabilities mediate the relationship between entrepreneurial effectuation and product and market diversification.Research limitations/implicationsIn the face of internationalisation uncertainties, SMEs use effectual decision-making logic and form strategic alliances to enhance their competitive positions. This research contributes to understanding how SMEs use effectuation in navigating international markets and expanding their product portfolios and market reach.Originality/valueThis study pioneers a mediation approach to explore the relationship between entrepreneurial effectuation, alliance capabilities and diversification in SME internationalisation. Examining the interplay of decision-making logic and collaborative ventures, this study offers insights into the complexities of SME internationalisation in uncertain environments.

Alliance management capability and SMEs’ international expansion: The role of innovation pathways

Although alliance management capability (AMC) has been widely investigated as a firm-level performance driver, it is still unclear whether and how this distinctive type of relational capability can enhance small and medium-sized enterprises (SMEs) internationalization activity. By integrating the alliance capability literature and resource-based view (RBV), as well as using data collected from a sample comprising 248 SMEs in UK manufacturing industries, we address this gap by examining the mechanisms through which SMEs can expand their internationalization via collaboration. We found support for our contention that AMC enhances radical and incremental co-innovation in SMEs, culminating in the international expansion of these firms. Additionally, we reveal the moderating effects of alliance partner diversity on the AMC and co-innovation relationship. The results offer both theoretical and managerial insights, contributing to a better understanding of how SMEs can leverage AMC to drive their global expansion strategies.

Alliance learning process and alliance success: the moderating role of openness

PurposeIndustry and academia are interested to understand how companies develop alliance capabilities through managing the knowledge, for alliance success. This study aims to investigate how alliance learning process is related to the overall success of any alliance, and how openness culture moderates the relationship of alliance learning process and alliance success.Design/methodology/approachEnglish language questionnaires were sent to top executives of 400 companies because English is a commonly understood language at managerial level in Pakistani companies. In total, 186 usable answers were received. Hierarchical linear regression was used for hypothesis testing.FindingsAlliance learning is significantly and positively related to alliance success. Openness plays a role as moderator between the relationship of alliance learning process and alliance success. Contrary to the literature, at low level of alliance learning, high level of openness increases the chances of alliance but as we move toward high level of alliance leaning, low level of openness is more effective to achieve the alliance success.Research limitations/implicationsThe data in this study was collected from Pakistan. The results may not be generalized to other regions, especially to developed countries.Practical implicationsThe results have implications for managers involved in alliances. They can be benefitted by this study to understand the role of alliance (knowledge) learning process on alliance success and contingent role of openness on this relationship.Originality/valueThis study is an important contribution to understand the notion of organizational learning and knowledge management in alliance context. To the best of the authors’ knowledge, this is the first study to investigate openness as a moderator of the relationship between alliance learning process and alliance success.

Enhancing technology innovation performance through alliance capability: The role of standard alliance network and political skill of TMTs.

Given the increasing competition in standards, standard alliances have become a vital choice for enterprises to enhance their competitive advantage. In standard alliances, what decisions must top management teams make to help their enterprises improve their innovation performance? To answer this question, we draw on dynamic capability theory, social network theory, and high-level echelon theory to understand how alliance capabilities and standard alliance networks affect technology innovation performance. We collected questionnaire data from 465 manufacturing enterprises in China, and the empirical findings show that (1) enterprise alliance capabilities and standard alliance networks have a positive impact on technology innovation performance; (2) enterprise alliance capabilities and technology innovation performance are mediated by standard alliance networks; and (3) the political skills of top management teams strengthen this moderating model. The results of this study enrich the literature on standard alliances and provide a reference for enterprises in developing standard alliance strategies, cultivating alliance capabilities, and exercising the requisite political skills of top management teams.

Learning from International Joint Product Development Work: The Role of Resources

International joint product development projects have gained much attention in recent years. In analysing factors that contribute to the successful completion of such projects, I tease out the effects of geographical dispersion, resource limitations, alliance capabilities and learning on project performance. International joint product development forces organizations to face a key decision between developing products in house and outsourcing the development process while managing project costs and coordinating project tasks across borders. Utilizing a data set spanning 20+ years in drug development, I observe the effects of geographical dispersion, learning from joint work and resource limitations on the performance of joint product development projects. I examine project characteristics that relate to resource fungibility and complexity and how organizations streamline their work activities while working with multiple international locations. My findings show that there is a commensurate cost of managing joint product development projects across multiple international locations, however, such dispersion also brings about the benefits of accessing resources in distinct locations. Furthermore, the negative impact of geographical dispersion on project performance can be overcome when the lead organization has learned to manage such projects through prior experience. I detail these findings and elaborate on its implications for theories on internationalization, learning, coordination and resources.

Exploring the role of external pressure, environmental sustainability commitment, engagement, alliance and circular supply chain capability in circular economy performance

PurposeThis study explores the role of external pressure, engagement capability (ENC), alliance capability (ACA), environmental sustainability commitment (ESC), and circular supply chain capability in circular economy performance.Design/methodology/approachThrough a cross-sectional survey and data collected from 124 small and medium enterprises (SMEs) in Ghana, this study employs partial least square structural equation modelling (PLS-SEM) to test the proposed model.FindingsThe findings reveal the following; first, external pressure has a significant impact on ESC. Second, ESC positively impacts ACA, ENC and circular supply chain capability. Third, ACA and ENC mediate the relationship between ESC and circular supply chain capability. Finally, circular supply chain capability has a significant impact on circular economy performance.Originality/valueThe originality of this study lies in testing a novel model that confirms that SMEs respond to external pressure by enhancing ESC as well as develop engagement and alliance capabilities to improve circular supply chain capability to achieve circular economy performance goals.

Ambidextrous Leadership of Publicly Listed Companies during Turbulent Times: The Importance of Agility and Alliance Capability

Purpose: The primary goal of this study is to evaluate the importance of developing organizational agility and alliance capability to survive during turbulence times such COVID-19 pandemic.
 Design/methodology/approach: The study's data was gathered through a survey of 103 top management teams from 55 publicly listed companies in Indonesia, and the responses were analyzed to determine the relationships between leadership, agile organization, alliance management, and firm performance.
 Findings: This study found that ambidextrous leadership at publicly listed companies has no direct impact on firm performance during times of turbulence. Agility and alliance management capability, on the other hand, fully mediate the relationship between ambidextrous leadership and firm performance.
 Research limitations/implications: Leaders, particularly those in public listed companies, must continuously improve their organizational agility and alliance management capability to remain competitive and adaptive to face environmental changes. For utilizing organizational agility and alliance management capability as a firm strategy during times of turbulences, ambidextrous leaders are expected to balance exploiting and exploring practices.
 Originality/value: This study compares the perceptions of top management team during and normal time and during the COVID-19 pandemic specifically on leadership, agility, and alliance management capability in a stock market environment.

Partnering Capability for Growth: Maturity Levels

Strategic Alliances are mushrooming with a desire of Co-creating and attaining Objectives, difficult to be achieved alone. The objective of this article is to understand two basic issues related to Strategic Alliance-Capabilities and Performance Management issues in Strategic Alliances. Strategic Alliances success can be gauged by their performance. To illustrate this point, we have taken two cases of steel industry. Caselet A has been a failure case and was taken at a stage when alliance capability maturity in the organization was low. Caselet B is a successful case and was taken at a stage when alliance capability maturity of the same organization improved at higher level.

The role of capabilities in shaping sustainable supply chain flexibility and enhancing circular economy-target performance: an empirical study

PurposeA circular economy is a popular approach considered by many firms to address sustainable development goals strategically. Literature indicates that collaborative relationships among supply chain partners facilitate circular economy practices. However, there is a dearth of studies in lower-middle-income countries indicating the unique challenges industries face whilst practising circular economy principles and how the challenges can be overcome. To address the calls of previous researchers, this study aims to explore the following relationships: engagement and alliance capability whilst data analytics capability plays a mediating role; the relationship between alliance and data analytics capability with sustainable supply chain flexibility whilst industry dynamism is considered as a moderating variable and the relationship between sustainable supply chain flexibility and circular economy-target performance.Design/methodology/approachA cross-sectional survey was performed and data was collected from 760 employees of Indian firms. Covariance-based structural equation modelling was applied to perform the path analysis to determine a firm’s capabilities in shaping sustainable supply chain flexibility and enhancing circular economy target performance.FindingsDrawing upon dynamic capability theory, it was first established that engagement capability has a positive and significant influence on alliance capability, whilst data analytics capability played a partial mediating role. Second, it was established that alliance capability and data analytics capability significantly affect sustainable supply chain flexibility, whilst industry dynamism played a moderating role. Finally, it was clear that sustainable supply chain flexibility had a significant and positive effect on circular economy target performance, ultimately enhancing sustainability.Originality/valueThis study advances the circular economy literature by recommending that firms must consider some critical operational level capabilities to develop their dynamic capability, i.e. sustainable supply chain flexibility, to better meet the competitive market conditions in turbulent business environments.

Is Love Extendable to Relationship Marketing and Supply Chain Management?

In a turbulent environment, firms with certain capabilities are likely to have effective relationships/collaborations with partners, access inimitable resources and achieve competitive advantage. Based on Dynamic capability theory, capabilities permit firms to create a sustainable competitive advantage, but further knowledge is needed on how these capabilities interact with each other and influence firm performance. We develop the construct called institutional (organizational) love in supply chain (ILSC) which mediates the function of dynamic capabilities on firm performance. The proposed conceptual model examines the relationship between marketing alliance capabilities (MAC) and intra-firm network capabilities, ILSC, customer orientation, and the focal firm’s performance.

Double Sided Perspective of Business Resilience: The Rationality and Irrationality of SME Experience

COVID-19 has created a killing field for SME as one of national economics pillars. Business resilience becomes crucial issue. It has stimulated the owner and/or managers of SME to do many things for saving the SME from its bankruptcy rationally and/or irrationally. This study aimed to elaborate business resilience and to test the impact of rational and irrational factors on business resilience. The rational factors consist of: (1) implementation of health protocol in doing business, (2) developing business flexibility, and (4) improving alliance capability. The rational factors consist of (4) enhancing pro-social leadership a (5) conducting workplace spirituality. This study is cross-sectional survey with causal approach for testing five hypothesizes. Convenience method was used as sampling method. This study involved 506 small medium enterprises in Jawa and Sumatera, the two biggest islands in Indonesia. Collected data were structured with PLS based Structural Equation Modelling. Proposed research model was described into second order construct and tested by validity and reliability analysis, measurement model analysis and structural model analysis. Keywords: Resilience, Flexibility, Spirituality, Pro-Social Leadeship

University-Industry R&D Alliances – An Exploration of Alliance Capabilities Measures

Background: Alliance capabilities studies have long emerged since the 1990s, focusing mainly on firm-to-firm collaboration. However, research on university-industry alliances only emerged from the 2000s. Alliance capabilities are portrayed as a crucial condition to achieve the targeted collaboration outcomes and sustainable relationships. As most alliance capabilities studies focus on firm-to-firm collaboration, research on university-industry research and development (R&D) alliance is still scarce. Thus, the measurement items for alliance capabilities in the university-industry R&D context are still under-developed. Thus, to investigate how alliance capabilities affect university-industry R&D performance in Malaysia, the relevant measures must first be defined. This paper intends to properly define the measurement items for alliance capabilities in the context of university-industry R&D alliances. Methodology: The alliance capabilities measures are adapted from various literature to accommodate both university and industry perspectives. In finalizing the measurement, in-depth pre-testing was conducted by five strategic management subject matter experts in ensuring face and content validity. Results: There are three alliance capability dimensions. The first dimension is alliance management capability which includes goal setting, process configuration, alliance structure, coordination, management support, and alliance evaluation. The second dimension is alliance integration capability which incorporates relational capabilities, inter-organizational communication, relational capital, and project team effectiveness. The third is alliance learning capability which measures alliance experience, knowledge articulation, knowledge sharing, knowledge codification, internalization, and relationship learning. Although this study successfully develops a set of measurement items for alliance capabilities in university-industry R&D, further statistical analysis is required to test this scale. Conclusion: To date, quantitative measurement items for alliance capabilities in the context of university-industry R&D alliances are still at the infancy stage. Although the measurements are yet to be statistically analyzed, they can be used as a benchmark for future university-industry R&D alliances studies.

International open innovation and international market success: an empirical study of emerging market small and medium-sized enterprises

PurposeThis paper presents a theorization and an empirical analysis of the influences of international open innovation (IOI) on the international market success of emerging market small and medium-sized enterprises (ESMEs). An analysis of the moderating roles played by cross-cultural competencies and digital alliance capabilities in this specific context is also presented.Design/methodology/approachThe study adopted a quantitative research design involving a survey of 231 ESMEs based in the UAE. The authors formulated some hypotheses and tested them by employing hierarchical regression models.FindingsThe findings revealed that IOI positively affects the international market success of ESMEs. The authors further found that both cross-cultural competencies and digital alliance capabilities moderate the relationship between IOI and international market success.Originality/valueThe study advances the international marketing, knowledge and innovation management literature in two ways. First, it is a pioneering study that advances both the theoretical and empirical scholarship regarding the relationship between IOI and emerging market firm international market success by employing an extended resource-based view. Second, it further highlights the role played by cross-cultural competencies and digital alliance capabilities as effective governance mechanisms that moderate the relationship between IOI and international market success.

Double-Sided Perspective of Business Resilience: Leading SME Rationally and Irrationally During COVID-19

Objective - This study aims to elaborate business resilience of small medium enterprises and to test the impact of rational and irrational antecedents of business resilience during COVID-19 crisis. Methodology/Technique - It is cross-sectional and causal study for testing five hypothesizes. Convenience approach was used as non-probabilistic sampling method. It involved 506 small medium enterprises in Jawa and Sumatera, the biggest islands in Indonesia. Collected data were structured with PLS based Structural Equation Modelling. Findings – The result explained that business resilience is influenced positively, directly, and significantly by business flexibility and workplace spirituality. Business flexibility is influenced by workplace spirituality, pro-social leadership, and alliance capability. Pro-social leadership of owners and/or managers influences implementation of health protocol and alliance capability. Novelty - This study has proved that business resilience has both sides of antecedents - in rational and irrational perspectives. Type of Paper: Empirical. JEL Classification: L26, L29. Keywords: Business Resilience, Small Medium Enterprise Reference to this paper should be made as follows: Saputra, N; Herlina, M.G. (2021). Double-Sided Perspective of Business Resilience: Leading SME Rationally and Irrationally During COVID-19, Journal of Management and Marketing Review, 6(2) 125 – 136. https://doi.org/10.35609/jmmr.2021.6.2(4)

Postformation alliance capabilities and environmental innovation: The roles of environmental in‐learning and relation‐specific investments

AbstractThis paper draws insights from the relational view perspective to examine the effects of two postformation alliance capabilities—interorganizational coordination and communication, and relation‐specific investments on small‐ and medium‐sized enterprises' (SMEs') environmental innovation. Analysis of time‐lagged survey data from a sample of 223 SMEs from the United Arab Emirates (UAE) shows a positive interactive effect of interorganizational coordination and communication on environmental innovation, and this relationship is mediated by environmental in‐learning. The results further indicate that relation‐specific investment moderates the indirect relationship between the complementary effect of interorganizational coordination and communication and environmental innovation. These findings extend the environmental innovation literature by exploring the interactive effect of interorganizational coordination and communication on environmental innovation.

Unravelling processes of alliance capability development: longitudinal processual insights from an emerging country multinational enterprise

PurposeThe purpose of this paper is to explore and unbundle the complex processes underpinning development of alliance capabilities, particularly in the context of emerging country multinational enterprises. More specifically, this paper focuses on how firms internalize and translate knowledge generated from experiences gained by participating in international collaborations.Design/methodology/approachThe authors adopt an exploratory case study approach to undertake in-depth processual analysis of alliance capability development in an Indian biopharmaceutical company. The authors focused their analysis on the initial four international alliances the company formed and identified key elements pertaining to alliance capabilities that the company internalized and those that it could not, as this was key in understanding alliance capability.FindingsThe research shows that based on experiences from previous alliances, the Indian organization was able to overhaul its negotiation and governance designing processes and practices as well as made robust changes to its internal communication and coordination practices. Interestingly, the company organization, however, did not make any significant changes to its processes and practices regarding partner selection.Practical implicationsThe results from our study can be used by managers to develop processes and practices when it comes to developing alliance capabilities.Originality/valueThe paper is novel, as it addresses two specific gaps in the nascent alliance capability literature. First, it provides insights on how different constituent elements/aspects of alliance capability actually develop and integrate within the organizational system over time, and in the process, the paper identifies that some aspects are better internalized as compared to other aspects. Second, by focusing the attention on an Indian biopharmaceutical company, the authors attempt to address a gap in alliance capability development research, which has been neglected in emerging country multinational entities.

Do alliance capabilities matter in tourism dynamic capabilities development An examination through agility and resilience lens

Do alliance capabilities matter in tourism dynamic capabilities development An examination through agility and resilience lens

Networking for sustainability: Alliance capabilities and sustainability-oriented innovation

Research on open innovation and sustainability suggests that alliances with external stakeholders help to improve innovation outcomes. This paper taps into the intersection of these literatures and investigates how alliance proactiveness and alliance portfolio coordination affect firms' sustainability-oriented innovation (SOI) outcomes. Data were collected from 170 firms in the Basque Country region in Spain, which has a highly collaborative regional innovation system. Partial least squares (PLS) modeling confirmed that alliance proactiveness is positively related to radical SOI, while alliance portfolio coordination is positively related to incremental SOI. In addition, these two capabilities involve a positive interaction effect in the case of radical SOI. An additional set of post hoc tests using latent class analysis (FIMIX-PLS) provided further evidence that firms with different internal features and levels of environmental turbulence benefit to varying extents from these capabilities and their interactions. Overall, the findings of this study show the benefits of the coupled mode of open innovation and alliance capabilities in reaching positive outcomes in SOI. On the one hand, companies focusing on incremental SOI can reap greater benefits from open innovation when collaborating within their existing portfolio; while for radical SOI, alliance proactiveness is beneficial for finding disruptive partners.

The Power of Japanese Film Production Consortia: The Evolution of Inter-Firm Alliance Networks and the Revival of the Japanese Film Indsutry

After long-term downturn of sales of Japanese films and dominance of Hollywood films in the Japanese film market during 1960’s and 1980’s, Japanese film industry revived from the latter part of 1990’s with evolution of interfirm film production and distribution alliances. In Japanese film industry, many of successful box-office films are currently produced and distributed under inter firm alliances across industries, which are called as a “film production consortium. (FPC)” In many of these cases, several major television broadcasting companies tend to form film production consortia, organizing several major firms across media industries including a film distribution company, a publisher of an original text or comic, an ad agency, a talent agency and other supporting companies (i.e. a nation-wide retailer or a videogame company). This chapter attempts to describe origin, main functions, history, current conditions and implications of a production consortium, growth of interfirm alliance networks mainly within media industries and new roles of producers to drive it. It also tries to explain reasons of its evolution and analyzes facing problems. We will argue these topics in following four parts, referring typical cases and major statistical trends. First, film production consortia have formed interfirm film production networks and become valuable social capital for box-office film production, mainly providing original texts and comics, funding money, excellent talents, new moving picture technology, media-mix promotion and multi-use of characters and moving pictures across media for film production. Second, a film production consortium increased from the middle of 1990’s, formed by several major television broadcasting companies, showed outstanding box-office sale and developed new character business. Third, within these interfirm networks, producers learnt new alliance capabilities to sequentially organize different combinations of production consortium. Finally, we will discuss current conditions of film production consortium, arguing that it becomes popular routines and show some difficulties to produce novel film projects. However, in considering global managerial implications, a film production consortium may give new business opportunities of multi-use of films across industries.

Do Alliance Capabilities Matter in Tourism Dynamic Capabilities Development An Examination through Agility and Resilience Lens

Do Alliance Capabilities Matter in Tourism Dynamic Capabilities Development An Examination through Agility and Resilience Lens