Alliance Partners Research Articles

Information Intermediaries: How Commercial Bankers Facilitate Strategic Alliances

AbstractWe investigate how bankers use information from lending relationships to help borrowers find partners for strategic alliances. Firms that have borrowed from the same banker or share an indirect connection through a network of bankers are significantly more likely to enter an alliance. Consistent with bankers overcoming informational frictions, their ability to facilitate alliances decreases with banker-network distance, and is stronger for opaque borrowers. Firms connected to more potential partners via banker networks enter more alliances. These alliances are associated with positive announcement returns, and brokering banks are more likely to receive future underwriting mandates.

Overcoming political risk in developing economies through non-local debt

Infrastructure investments are essential in generating sustainable development but also involve extensive political risk and potentially unreliable local partners. We study how banks financing such investments use syndication with non-local partners to pool economic leverage from trade, investment, and FDI. Using 5928 of the world’s largest infrastructure and energy projects in 160 countries between 2000 and 2013, we show that banks pool economic leverage from banks with dominant economic ties to the host country and from supranational institutions. Our findings contribute three distinct elements to the nonmarket strategy literature. First, they highlight the strategic value of macro-economic dependencies in the management of political risk. Second, our study positions non-local alliances as an alternative to alliance partners in the host-country context. Third, our study is the first in IB to acknowledge the value of debt-side pooling of leverage. From a practical and policy point of view, our findings suggest that practitioners and policymakers should strive to improve the efficiency of debt syndication across borders as a means of mitigating political risk and encouraging infrastructure investment.

The Impacts of University Brand on Korean and US Consumers: Focusing on Brand Reputation and Brand Fit

Purpose This study examines the impacts of brand reputation and fit of university brand on brand evaluation, purchase intention, and willingness to pay price in a cross-cultural context. Design/Methodology/Approach An experiment with questionnaire survey method was used in Korea and the U.S. to compare the different brand effects of university brands. Findings This study identifies the cultural difference between Korean and U.S. consumers regarding university brands. Korean consumers prefer the reputation of a university brand, while, to the contrary, U.S. consumers prefer the fit of a university brand. Research Implications This study clarifies the advantages of a university brand in the corporate-university alliance. Particularly, it can help brand managers find an appropriate alliance partner using the information regarding appropriate characteristics of a university brand. In addition, this study investigates the cultural differences of consumers responding to university brand.

A Multihull Boat’s Fatigue Analysis at Early Design Phase

Fatigue analysis and life cycle prediction of a naval craft or a commercial ship are one of the most critical phases of structural integrity calculations. Many structural failures have occurred due to insufficient structural design, production methods, and inappropriate operational environmental conditions. As a result of the deterioration of the structural integrity, the occurrence of both vital and economic losses becomes inevitable. This paper emphasises the importance of fatigue and life cycle analyses at the early design phase since the fatigue phenomena are generally considered in the late design stages. In this study, fatigue calculations and life predictions were carried out by the Palmgren–Miner method. The wave rosette, also called long-term wave directionality, was used as the wave spectrum approach. Based on wave loads and accelerations, an FE analysis was carried out using the Maestro Marine Altair Partner Alliance (APA) software. The undamaged life prediction of the vessel was calculated based on different sea states and vessel speeds. A specific scenario, which was prepared based on the International Code of Safety for High-Speed Craft, was also analysed to compare the fatigue life of the vessel with regards to safe operating conditions for passengers and crew. In this study, the effect of sea states, environmental conditions, and materials used on the fatigue behaviour of the vessel are discussed and analysed. As a result of this study, the shortest and the longest undamaged life spans based on the loading scenarios are put forth clearly. Analyses and calculations prove that loading scenario 5 is the most effective scenario in terms of the undamaged life span of the boat. On the contrary, loading scenario 1 gives the shortest service life. The main reason behind this phenomenon is the relation between the fatigue endurance limit and load cycles.

Alliance-to-acquisition transitions: The technological performance implications of acquiring one's alliance partners

Drawing on organizational learning theory, we investigate the technological performance implications of acquiring one's alliance partners. We do so using a sample of 252 firms in four high tech industries, who jointly announced 2,398 acquisitions and filed 125,440 new patent applications, in the period of our analysis. We argue a history of collaboration will allow the acquirer to more easily identify and absorb the target's knowledge, and show that the share of ‘alliance-to-acquisition transitions’, in the total set of the firm's acquisitions, increases the firm's inventive quantity. We also argue that a history of collaboration reduces the opportunity to encounter unknown and unexpected knowledge, which will affect both the type and quality of invention. We find support for the former, and show that the share of alliance-to-acquisition transitions increases the firms exploitative tendencies. In terms of the latter, we find a weak relationship between the share of transitions and overall patent quality, but find that the share of transitions does not affect the number of high quality breakthrough inventions. In so doing, we provide new insights, relevant to the acquisition literature, the literature on transitional governance, and the literature on organisational learning, and position alliance-to-acquisition transitions as a mechanism for altering the firm's technology production function.

Make or buy? Explaining diverging frigate procurement approaches in Denmark and Norway

ABSTRACT Why did Denmark and Norway opt for respectively a domestic “make” and a “buy” abroad approach when acquiring comparable major surface combatants given both host a capable shipbuilding industry? Three explanations are examined: (1) Balancing concerns inch small states towards “buy” abroad decisions, if requirements are deemed urgent and if junior alliance partners fear abandonment by senior partners. Junior partners by contrast prefer “make at home” if entanglement is a greater concern. (2) National innovation systems can be biased towards large projects, such as complex warship programmes, or have a knowledge diffusion focus emphasising niche capabilities. The former point to a “make” decision whereas the latter is inclined towards “buy.” (3) Domestic defence industry advocate “make” decisions with the qualification that weaker firms favour “buy” with offset arrangements. Political executives balance job creation with military capability, but recent adverse domestic procurement experiences may prompt governments to favour “buy.”

Do Alliance portfolios encourage or impede new business practice adoption? Theory and evidence from the private equity industry

AbstractResearch SummaryWe show that the existing alliance portfolio of a firm can impede the adoption of a new business practice. We analyze the private equity industry which features alliances in the form of deal syndication and has recently seen the rise of a novel investment practice: add‐on deals. Using algorithm‐supported induction, we first document robust empirical patterns using machine learning techniques, and then test the theory we construct to explain these patterns using standard econometric methods in a hold‐out sample. We find that when the capabilities required for the new business practice require new partners, existing alliance portfolio members who support current practices can impede access to these new partners (and hence the adoption of the new business practice) through capacity constraints and inter‐partner rivalry.Managerial SummaryAlliance partners play a valuable role in many industries, and particularly in the PE industry as syndication partners. While the benefits of working with such partners are well understood, we uncover a potential weakness that alliance portfolio managers should be aware of. If a new business practice relies substantially on a new type of alliance partner, the existing alliance portfolio may impede access to this partner, thus impeding the adoption of the new practice. For PE fund managers, in particular, this implies balancing their deal syndication strategy with the development of new relationships with corporate partners to adopt add‐on models to complement the traditional LBOs. We also show how to use machine learning techniques to uncover patterns of strategic interest in past transaction data.

Strategic alliances for corporate sustainability innovation: The ‘how’ and ‘when’ of learning processes

Mounting sustainability pressures challenge established firms to engage with sustainability innovations, which are often introduced by startups. Research on alliance learning has established the potential of learning from startups to advance corporate innovation. Here, scholars have outlined alliance learning processes and outcomes and have distinguished learning about and learning from alliance partners as two key learning types. The saliency of learning from the operational alliance process is stressed. To date, however, no study has investigated alliance learning processes and outcomes for sustainability innovations. This is despite the fact that sustainability research suggests learning processes in the sustainability context have a distinct nature. This study addresses this research gap by analyzing the sustainability-specific learning processes and outcomes of a large European meat producer and wholesaler with a turnover of $2.7bn in the fiscal year 2019/2020. The firm formed alliances with nine startups for sustainable plant, insect-based and cell-based protein solutions. Our analysis (1) identifies three distinct characteristics of sustainability-related alliance learning processes and outcomes, and (2) specifies the temporal occurrence and outcomes of learning types in alliance learning phases. In contrast to findings of prior research, our study reveals that learning about alliance partners is of key importance throughout the whole sustainability-oriented alliance learning process. In addition, the findings highlight that alliance learning outcomes may support an established firm's contribution to the sustainability transformation of mass markets.

How does a partner's acquisition affect the value of the firm's alliance with that partner?

AbstractResearch SummaryHow does an acquisition initiated by a firm's alliance partner affect the value that the firm can create and capture from its alliance with that partner? We conjecture that the similarity between the businesses of the firm and its partner's acquisition target restricts the firm's ability to create and capture value from its alliance, whereas the complementarity between their businesses enhances the firm's gain from its alliance. We further expect relational embeddedness between the firm and its partner to mitigate the competitive tension associated with similarity while reinforcing synergies ascribed to complementarity. Our analysis of 361 firms and their 590 alliances with 91 partners that acquired 164 targets during 2000–2016 supports our predictions about business similarity and complementarity but refutes those concerning relational embeddedness.Managerial SummaryWhen a firm's partner engages in an acquisition, this can impact the value of their alliance. We show that when the acquired target competes with the firm, the value of the alliance declines. In turn, when the target and firm's businesses are complementary, the alliance creates more value. We also find that when the firm and the partner had extensive experience working together, this reinforces the negative effect of business similarity with the target, probably because of perceived betrayal and knowledge leakage. Joint experience also reduces the value of complementarity, likely due to the difficulty of modifying collaborative practices. We encourage managers to scrutinize their partners' corporate initiatives, reduce commitment when the partner acquires a competing target, and leverage new complementarities following the partner's acquisitions.

Exploration versus exploitation: the influence of network density on firm’s strategic choice between two types of innovation

ABSTRACT Extant research has shown equivocal evidences of brokerage on firm innovation. We try to unpack the mixed findings by studying how network density among a firm's alliance partners influences exploratory innovation. Based on the idea that it is optimum for a firm to focus on one type of innovation when searching for resources from the alliance network, we posit that a low level, as well as a high level of network density, offer a suitable environment for exploratory innovation, but a medium level of network density is more conductive to exploitative innovation. A longitudinal investigation of 277 biopharmaceutical firms indicates a U-shaped relationship between network density and exploratory innovation. This relationship is positively moderated by absorptive capacity. The study integrates related theories and provides a comprehensive framework of how the connect tightness among a firm’s partners impacts its exploration and exploitation behaviour.

The UV Protection Alliance in Germany-Purpose and goals

Trotz der ernsten gesundheitlichen Gefahren von UV-Strahlung ist bis heute der Schutz vor UV-Strahlung keine Selbstverständlichkeit. Die Einschätzung der Gesundheitsrisiken durch UV-Strahlung in der Bevölkerung ist zwar weitestgehend realistisch, scheint aber nicht zu einer veränderten Einschätzung des persönlichen Risikos und zu einem adäquaten UV-Schutz-Verhalten zu führen. Hierzu tragen nicht zuletzt die teils widersprüchlichen Aussagen und Empfehlungen bezüglich der positiven und negativen Gesundheitsfolgen – auch aus Wissenschaftskreisen – bei. Eine Harmonisierung sowie eine Bündelung der Aussagen und Aktivitäten einzelner Akteure im UV-Schutz zur Prävention UV-bedingter Erkrankungen verleiht den Schlüsselbotschaften das notwendige Gewicht, um UV-Schutz zu einer Selbstverständlichkeit in der Gesellschaft werden zu lassen. Zu diesem Zweck wurde das UV-Schutz-Bündnis vom Bundesamt für Strahlenschutz (BfS) initiiert. In diesem Beitrag wird über das UV-Schutz-Bündnis berichtet, es werden die Partner im Bündnis, die Ziele des UV-Schutz-Bündnisses, bisherige Arbeitsergebnisse des Bündnisses sowie Aktionen und Interventionen der Bündnispartner vorgestellt. Die Wirkung des UV-Schutz-Bündnisses nach außen wird beschrieben und ein Ausblick auf die weiteren Aufgaben gegeben, denen sich das Bündnis gegenübergestellt sieht.

How knowledge acquisition creates a competitive edge? A qualitative inquiry from international consultancy alliance

PurposeThe current study attempts to bridge the existing gap related to the role of knowledge acquisition from international alliance partners to improve competitiveness by examining the distinct processes of knowledge acquisition and the challenges confronted in this learning process in order to enhance local and international market performance.Design/methodology/approachFollowing case-study approach based on systematic combining, the study presents a case of knowledge acquisition and learning in the context of an international consultancy alliance between leading Pakistani and Chinese engineering firms using six in-depth interviews of key engineers to explore the dynamic mechanisms for knowledge acquisition and learning from the Chinese firm. Grounded analysis drawn upon the Straussian version of grounded theory (GT) {{Strauss, 1990 #136} Strauss, 1998 #139} is used for data analysis in this research.FindingsIt was found that the processes of explicit and implicit knowledge acquisition from Chinese firms are integrated consultancy working, social and technical adaptability and seeking confirmation about the work done and knowledge/theories and models used in work. However, these processes are quite complex, posing serious challenges for National Engineering Services, Pakistan to acquire the required knowledge, which can be addressed through partners' motivation to share and acquire knowledge, cultural intelligence and friendship and informal association. The study also found that the knowledge acquired from technologically advanced international organizations by the host partner in the international strategic alliance not only provides a competitive edge to the local host in its local market but also builds its capacity to undertake similar projects in other parts of the world, substantially enhancing its market success.Originality/valueAdding up to the current literature that focuses on knowledge acquisition in a parent-subsidiary relationship, the current research proposes a framework for knowledge acquisition in the unique context of international strategic alliances. The research provides managerial guidelines to manage knowledge acquisition for gaining a competitive edge that would be helpful for the managers in the era of growing interdependence among the organizations across the borders.

Anatomy of a break-up in the Democratic Republic of Congo: The collapse of the FCC-CACH majority and why it matters

ABSTRACT This article looks at the first three years of DRC President Felix Tshisekedi’s presidential mandate, and specifically at the period between January 2019 and August 2021. It examines the evolution of the ruling coalition between Tshisekedi’s Coalition pour le Changement (CACH) and former President Joseph Kabila’s Front Commun pour le Congo (FCC), which emerged from the contested 2018 presidential election in the DRC. In doing so it traces the gradual breakdown of relations between the ruling alliance partners and takes a step-by-step look at how Tshisekedi managed ultimately to break up the FCC’s parliamentary majority, paving the way for the formation of a new majority which supports him. In doing so the article will examine the legal aspects of the different steps taken towards the break-up of the ruling coalition and the parliamentary majority and examine the implications of the process for the DRC’s political future.

How Does Proximity Affect the Dual Innovation of Alliance Partner? The Role of Knowledge Coupling

Recent work on alliance partner selection focuses on the relationship between partner features and alliance performance, while ignoring the influence mechanism of alliance partner features on different innovation types of firms. In this paper, based on proximity perspective, the influence mechanism model of alliance partner features on firms’ dual innovation is constructed. Analyzing questionnaires and patent data of high-tech firms, it is found that (1) Technological proximity (TP) has a positive impact on focal firms’ exploratory innovation (EXR) and exploitative innovation (EXI); (2) Knowledge coupling (KC) mediates the relationship between TP and dual innovation; (3) Social proximity (SP) positively moderates the relationship between TP and dual innovation, and positively moderates the relationship between TP and KC; Meanwhile, (4) there is a moderating effect of different levels of SP on the magnitude of the mediating effect of KC. By constructing a theoretical framework based on “proximity – knowledge coupling – dual innovation”, this paper is helpful to draw scholars’ attention to the relationship between proximity and dual innovation, and provide theoretical reference for firms to select alliance partners reasonably and efficiently.

Trust and control manifestations in employee-driven innovations

Purpose: The goal is to deepen understanding of trust and control in employee-driven innovations (EDI) and is met by empirical research basing on key informants’ narration. Design/methodology/approach: Nineteen interviews with key informants were conducted between March and June 2021 in three companies from different sectors (telecommunication, pharmaceutical and financial). Findings: This publication contributes to the existing literature on EDI and trust-control in multiple ways. First, it reveals lack of direct reference to trust in employees’ discourse on EDI. Second, it highlights manifestations of trust and control along with fit into Das and Teng (2001) framework. Third, it reveals differences among researched companies in terms of breakdown of trust and control types, which poses further questions about factors impacting these differences. Fourth, it shows that social control manifestations are not recognized. Research limitations/implications: Research limitation stems from the method, which does not allow to make generalizations. Manifestations of social control in Das and Teng (2001) model were not recognized in the research, which opens a future research avenue. Future research could investigate impersonal trust in the context of EDI. Practical implications: The research proves important role of general managerial support, identified in the literature on innovations and trust. Originality/value: The article proposes categorization of trust and control manifestations and fit into types of trust and control in Das and Teng (2001) model, which originally presents relations between trust, control and risk types in collaboration between alliance partners. Keywords: trust, control, employee-driven innovation, bottom-up innovation, manifestations. Category of the paper: Research paper.

Military-political consequences of the events in Afghanistan: trends and their consideration in diplomatic practice

The events taking place in the world as a result of the stampede of the United States from Afghanistan marked a radical change in the geopolitical and geostrategic picture of the world. As a result of these events, the United States of America in an instant turned into the ghost of a once powerful state, which has provided them with many allies and admirers until now. America came to the Middle East without understanding anything about its peculiarities, having squandered the lives of its own citizens and gigantic resources without any tactics and strategy. As a result, they suffered the greatest strategic blow in Afghanistan since the end of the Cold War. This also means the defeat of US allies, primarily NATO, who realized in mid-August 2021 that the US administration would not coordinate its actions with them on the issue of ending the Afghan mission. Thus, a serious problem for the United States after its strategic defeat in Afghanistan was the destruction of trust in Washington as an alliance partner and, as a result, the undermined prestige of the United States. The published article answers the question of what global consequences can be expected as a result of all this and how the impact of the Afghan catastrophe of the United States will manifest itself in the near and long term.

O strategickej autonómii a budúcnosti Európskej únie v Severoatlantickej aliancii

Tensions between the West and Russia, closely linked to the Ukrainian crisis,Tensions between the West and Russia, closely linked to the Ukrainian crisis,have further fuelled discussions on mutual cooperation between theEuropean Union and the North Atlantic Alliance in the area of defence. TheEuropean Union is the political and economic power base for the security anddefence of the European continent, as it is primarily its Member States thatset the overall strategy for European foreign and defence policy. On the otherhand, the member states of the Union, whether they are or not also membersof the Alliance, lag behind their alliance partners, especially the UnitedStates, in military capabilities and capacities. Therefore, through someEuropean Union initiatives, they are now seeking to build more militarycapabilities and capacities, thus strengthening not only the level of Europeandefence and security, but also the possibility of the Union's strategicautonomy. Therefore, the author uses relevant methods of scientific researchin this article to discuss the possibilities of European strategic autonomy andthe future of the European Union in the Alliance.

An Entropy Weight‐TOPSIS Based Model for Partner Selection of Strategic Alliance of Prefabricated Construction Enterprises

Selecting the right partner is a key factor for the successful construction of the strategic alliance of prefabricated construction enterprises in China. Based on the summarization of domestic and foreign studies, combined with the characteristics of the strategic alliance of prefabricated construction enterprises, the paper has constructed an evaluation indicator system of the partner selection of the strategic alliance of prefabricated construction enterprises in China. The paper also has conducted an empirical study on the evaluation model of partner selection of the strategic alliance of prefabricated construction enterprises in China by using the method Entropy Weight‐TOPSIS. The research results show that the five most influential second‐level indicators are commercial housing sales capability, property management capability, commitment of capital, commitment of talents, and product innovation capability. The model constructed in the paper can comprehensively evaluate and select the strategic alliance partners of prefabricated construction enterprises in China.

Sustainable Strategic Alliance Partner Selection Using a Neutrosophic‐Based Decision‐Making Model: A Case Study in Passive Component Manufacturing

The electronics manufacturing industry is in an era of collaborative thinking and rapid change, as the rise of strategic alliances (SAs) plays a critical role in supply chain management. Strategic alliance (SA) collaboration is one of the most common strategies in the electronics industry, helping companies to complement each other. Most organizations or alliances operate together to produce more beneficial technologies for mutual benefit based on the sustainability thinking, such as in the areas of 5G, electric vehicles, aerospace, and smart healthcare. As the prompt evolution of information technology and electronics has a deep impact on global business activities, selecting partners based on a sustainability perspective is an urgent task. This paper proposes a complete sustainable SA partner selection framework to select the optimal partners. A neutrosophic‐based decision‐making model is used in the analysis. The neutrosophic ITARA technique is proposed to generate a set of criteria objective weights, and the neutrosophic TOPSIS technique is applied to determine the performance and priority of sustainable SA partners. This study introduces neutrosophic fuzzy logic to reflect the uncertainty in complex problems. Real‐world data from a multinational passive component manufacturing company are used for case demonstration and analysis. The framework and methodology proposed in this study have many contributions to the electronics industry, including the establishment of assessment criteria, the identification of criteria, and the provision of partner selection practices. For academic research, the proposed model can be replicated in other areas of assessment and selection issues.

Standing on the Parent’s Shoulder or in its Shadow? Alliance Partner Overlap Between Employee Spinouts and Their Parents

Standing on the Parent’s Shoulder or in its Shadow? Alliance Partner Overlap Between Employee Spinouts and Their Parents