Strategic Technology Alliances Research Articles

Overlap in external technology search locations and the breadth of IPR assets: lessons from the Security Software Industry

ABSTRACTThis study examines the effect of intellectual property rights (IPR) on firms’ geographic overlap strategy of external technology search (ETS) compared to rivals. I reveal that firms are able to realise less intensity of geographic overlap in ETS locations compared to competitors and that this outcome is a function of the breadth of their upstream (generality of patents) and downstream (diversification of trademarks) IPR tools. Accordingly, I conclude that both covariates influence the spatial isolation of ETS vis-à-vis competitors. The effect of generality of patents on isolation, however, is more pronounced in comparison with diversification of trademarks at strategic technology alliances, meanwhile the reverse scenario is true at acquisitions. I also reveal relevant findings about resource-rich organisations defined as those with the broadest portfolio of such up- and downstream IPR assets within the industry.

The Role of Strategic Technology Alliances (STA) Towards Organizational Performance in Manufacturing Industry: The Perspective of Developing Countries

Purpose: This research investigates strategic technology alliances (STA) in Malaysian manufacturing firms and the impact on organizational performance. The outcomes of this paper shed light on the underpinning theories under Resource Based View (RBV) and Organizational Learning (OL) as an antecedent for the successful implementation of strategic technology alliances in the manufacturing industry. At the end of the paper provides a model that describing the success factor of strategic technology alliances en route to improve organizational performance and remain competitive.Design/methodology/Approach: Research conducted through survey design by collecting questionnaires from 335 Malaysian manufacturers. The empirical analysis performed by using structural equation modeling (SEM) to represent the findings as this statistical method is more robust compared to others.Findings: The empirical analysis show that absorptive capacity, type of alliance and strategic technology alliance has positive relationship towards improving organizational performance in terms of market share, profit, sales level and manufacturing capabilities. However, in the other coin, resource base availability is insignificant towards organizational performance. Furthermore, technology transfer also only partially mediates STA and organizational performance. Despite the onset of successful alliance formation and resultant technology transfer, firms still need to invest in developing their resources, employee skills, production methods and industrial processes in order to sustain their competitiveness in the global economy.Originality/value: Many organization embrace technology transfer as part of the strategic weapons to maintain business sustainability. However, there is lack of empirical evidence profiling the antecedent on how organization could success in becoming the developers of their own technology. Therefore, this research attempts to provide a model as guidance to managers in developing country as a key to success in forming technology alliances with foreign countries.

Internationalisation Efforts of Chinese and Indian Companies: An Empirical Perspective

AbstractIn this paper we aim to understand the internationalisation strategies of companies from India and China. In particular we focus on two external organisational modes: mergers and acquisitions (M&As) and strategic technology alliances. Using a large longitudinal data set we show that Greater China and India are emerging as important players in worldwide M&As and alliances whereas the traditional dominance of the US in both these activities is on the decline. Our analysis of the patterns of M&As and alliances revealed important similarities and differences between the two countries.

Strategic technology alliances and networks

This paper briefly reviews the literature on strategic technology alliances (STAs) and networks, allocating the contributions to ‘micro’ (firm) and ‘meso’ perspectives (the network). The focus is on a logical reconstruction of important themes in the literature pertaining to the role of STAs in boosting innovation and in promoting the survival and growth of partners and their environments. Overall, the literature points to a quite important role of alliances and networks especially in knowledge-intensive industrial activities combining the production and utilization of technological knowledge for competitiveness and growth. Not unexpectedly, important differences are pointed out in terms of incentives and benefits from alliances across different types of firms and industries. Network structure evolves in accordance with the nature of the industry and with the type of technological advancement sought by participating organizations.

Status and impact of strategic technology alliances among telecommunications firms in Nigeria

This paper examined strategic technology alliance among telecommunications service providers in Nigeria and the benefits accrued to service providers and subscribers from the alliances. This was with a view to providing appropriate recommendation to improving the services rendered to subscribers. Primary data were collected from four GSM network operators, two CDMA network operators and three telecommunications service vendors in Nigeria. Findings revealed the existence of strategic technology alliances such as licensing, joint venture, turnkey, venture capital, franchising, merger and acquisition. Benefits derived from the strategic alliances in decreasing order were improved network coverage, decrease in call drops, decrease in signal down time and decrease in tariff of data and voice services. Furthermore, the allies enjoyed increased turnover when they engaged in strategic technology alliance. The study concluded that a well–structured strategic technology alliance relationship among telecommunications firms can bring about better services for sustainable development in the country.

Managing organisations in Schumpeterian environments: intra-industry diversification through strategic technology alliances and patents

In young, innovative, and uncertain Schumpeterian environments, a pivotal way to achieve growth for the firm is the entry into a niche that forms part of the same industry. Given the fast-moving and competitive nature of Schumpeterian settings, we turn to firms' technological investment decisions, implied by the innovation management stream of literature, to study the ability of a firm to adopt an intra-industry diversification strategy. Empirical evidence from the encryption software industry demonstrates that patents and strategic technology alliances, two specific technological projects, positively influence intra-industry diversification. In a further inquiry, we find that when firms activate patents and strategic technology alliances simultaneously, the benefit of this technological portfolio on intra-industry diversification can be captured in more uncertain business environments.

Strategic alliance motivation for technology commercialization and product development

Purpose – This paper aims to investigate the relationship among alliance motivation (AM), execution of cooperation (EC) and alliance performance of strategic alliance for commercializing technology and developing products. Design/methodology/approach – The measurements were constructed and tested empirically through a survey of 320 strategic alliances in the food processing industry in Thailand. Confirmatory factor analysis and structural equation modelling were applied to refine scales for measuring AM, execution and cooperation performance. Findings – This research found that firms adopted social interaction with alliance partners in order to establish mutual expectations about technology characteristics, access opportunity and organisational management styles, factors that are shown to have positive influences on both commercial and partnership performance. Findings also confirm a significant positive impact of technology characteristics, access opportunity, market potential and financial benefit on the adoption of a formal partnership agreement, but a significant impact only on commercial performance. Research limitations/implications – Further research should use random samples in different industries in other emerging economies, and other data analysis methods to assess decision-making in strategic technology alliances that may include different types of partnerships. Practical implications – The findings are also useful for managers who leverage operations with external resources obtained through strategic alliances parameters both in the process of managing relationships and achieving results. Originality/value – This article contributes to extant literature by developing a practical measurement system of AM, actual EC and resulting performance in an emerging economy country. It also contributes to clarify the decision-making of firms that form strategic alliances for commercializing technology and developing products to facilitate more quality management research in other industries and countries.

Strategic technology alliances and organizational performance in manufacturing

Manufacturing organizations in developing economies are finding ways to access the latest technologies because of intense competition and pressure to produce innovative products and technologies to...

Organisational learning as an antecedent of technology transfer and new product development

PurposeThe purpose of this paper is to examine the influence of organisational learning (comprising absorptive capacity, nature and type of alliances and learning environment) through strategic technology alliances on technology transfer and new product development. The paper is based on a larger research on alliances in the Malaysian manufacturing industry.Design/methodology/approachThe antecedents and outcomes of organisational learning were tested using structural equation modelling, based on data collected from 335 organisations through an online survey questionnaire.FindingsThe findings depict that absorptive capacity, nature and type of alliances and learning environment significantly affect technology transfer in Malaysian manufacturers, but not necessarily new product development simultaneously. Nevertheless, the results establish technology transfer as an effective means for building innovative capabilities in developing new products. This is imperative for attaining Malaysia's current goal in improving the manufacturing industry and becoming an industrialised nation by the year 2020.Research limitations/implicationsThe findings advocate further deliberations for manufacturers in Malaysia in shaping their strategies and learning objectives when embarking on collaborative relations, as these can result in technological competencies and ultimately the capacity to develop new innovative products.Practical implicationsThe paper offers useful insights for manufacturers when forming technology alliances; and facilitate decisions by current practitioners in managing collaborations. The paper also informs Malaysian Government institutions in developing mechanisms, economic policy strategies and business support services for enhancing the economic and commercial viability of Malaysian manufacturing activities and products.Originality/valueThe value of this paper lies in discerning the current capabilities and strategies of manufacturing firms in developing nations in order to remain competitive.

Knowing When to Merge: A Small IT Business in Korea Considers Its Options

This case study focuses on how a Korean software firm, CCMedia, executed a successful global strategy by merging with its technology partner to gain access to international markets. The case study also reviews the key challenges CCMedia faced after the merger. Intangible assets, such as IT technology, could allow CCMedia to earn overseas capital investment through the merger. With capital and human resources backup from IT Inspire Inc., its former technology partner, CCMedia could enter foreign markets. This case examines the transformation of a strategic technology alliance to a hierarchical structure as a result of a merger. It shows that technology-related alliances could play an important role in possible takeover activities. It provides insights into strategies that technology-based small businesses in Korea could follow to enter international markets.

Strategic information technology alliances for effective health-care supply chain management

To gain and sustain competitive advantage, health-care providers have to continuously review and renovate their operational and information technology (IT) strategies through collaborative and cooperative endeavour with their supply chain channel members. This paper explores new ways of enhancing a health-care organization's responsiveness to changes and increasing its competitiveness through implementing strategic information technology alliances among channel members in a health-care supply chain network. An overview of issues and problems (e.g. bullwhip effect, negative externalities and free-riding phenomenon in multichannel supply chains) presented in the health-care supply chains is first delineated. This paper further goes over the issues of health-care supply chain coordination and integration for strategic IT alliances, followed by the discussion of the spillover effect of IT investments. A number of viable IT practices (such as information sharing and Internet-enabled supply chain portal) for effective health-care supply chain collaboration and coordination are then examined in this research. Finally, the paper discusses how strategic IT alliances can help improve the effectiveness of health-care supply chain management.

Decision making on governance of strategic technology alliances

PurposeThe purpose of this paper is to study the mechanism through which decisions on the preferred governance mode of strategic technology alliances are made at the firm level.Design/methodology/approachThe author constructed a value‐mediated governance model that is empirically tested through a survey of 57 strategic alliances in the Greek wireless services industry and estimated through a Structural Equation Modeling technique, namely Partial Least Squares.FindingsQuasi‐hierarchy governance modes are preferred by firms assessing their current value as high, and lacking fear of partners' opportunistic behavior. Quasi‐market alliances are preferred by firms having high expectations for the future value of the alliance, and facing high endogenous uncertainty resulting from the existence of a competitive relationship with the partner.Research limitations/implicationsWhile the resource and cost perspectives are founded on diverse assumptions on firms' ability to write complete contracts, their implications for the firms' decision‐making behaviour on the alliance governance issue seem to be complementary to those of the value perspective.Practical implicationsTransitional governance forms, quasi‐market alliances that evolve to quasi‐hierarchy alliances, seem to be preferred in emerging technology‐based environments.Originality/valueThe Expected Alliance Value concept is introduced to explain how exogenous uncertainty characterizing the environment of emerging technology‐based industries can influence the already investigated effects of the partner uncertainty and the firm's current value on the alliance governance preferences.

Strategic technology alliance termination: An empirical investigation

There is growing consensus that overall alliance termination rates are high. However, despite this track record of termination and despite unsurpassed growth rates of strategic technology alliances, little is known about the reasons for their termination. Typically strategic alliances have been characterized as inherently instable, i.e. often involving unplanned and premature termination of the alliance by partnering firms indicating alliance failure. The literature on strategic technology alliances, however, proposes that alliance termination does not always indicate failure, but can be intended and can be a sign of strength. We examine these different perceptions by using a sample of 48 strategic technology alliances in different high-technology industries. The findings in the paper confirm that the rates of termination are rather high for strategic technology alliances. Overall, we found that in particular negative prospects about future cooperation, negative perceptions about joint benefits and the lack of a win-win situation had an impact on the decision to terminate a strategic technology alliance. Also, the fact that some companies opt only for short-term (not for long-term and renewed) cooperation seems to introduce a negative factor into the longevity of strategic technology alliances.

B2B marketplaces sharing IS/IT infrastructures: an exploration of strategic technology alliances

PurposeThe purpose of this paper is to explore the development of a technology alliance for B2B marketplaces.Design/methodology/approachIn this paper there was a lack of rigorous empirical evidence in the area upon which to base this study, so an exploratory methodology chosen was deemed appropriate. An interpretative case study was undertaken in the Eutilia B2B marketplace. Data gathering took place over a three‐month period from July to September 2003. The data‐gathering techniques used were semi‐structured interviews and document analysis.FindingsThis paper draws upon research on co‐operative partnerships and strategic alliances to explore the applicability of technology alliances to business‐to‐business (B2B) electronic marketplaces. The paper explains a model developed by Eutilia, a leading B2B marketplace in the utilities sector, to justify such a technology alliance. The case study illustrates how Eutilia operationalised this model and entered a technology alliance with a competing B2B marketplace. The analysis shows how both marketplaces benefited from the technology‐alliance, and the paper concludes by proposing determinants of technology alliances for B2B electronic marketplaces.Research limitations/implicationsIn this paper a single case study was the method adopted, so findings may not be generalisable.Originality/valueThis paper illustrates how B2B electronic marketplaces can benefit from technology alliances. This paper is of interest to both academics and practitioners involved in B2B electronic marketplaces.

Strategic Alliance Networks and Innovation: A Deterministic and Voluntaristic View Combined

Over the past decades we have witnessed a tremendous growth in the number of strategic technology alliances and a growing importance of interfirm collaboration in the high-tech sectors. The literature on these topics has grown accordingly. In this respect, our paper serves two aims. One is to provide an overview of the consensus on key issues in this vast body of literature. Second is to identify some major gaps in this literature that may inform future research. In serving these aims, we first discuss the dominant structuralist perspective that stresses the role of embeddedness, but which also reflects a deterministic stance as if firms are subject to an exogenous structure. In contrast, we also explore a more voluntaristic view of how firms may possibly shape their network in view of achieving their strategic aims. This view also seems better able to capture change and network dynamics, an issue that has been largely ignored by the structuralist view.

Governance contingencies for strategic technology alliances: a case in wireless business

Strategic management research has often emphasised the importance of alliances as efficient structure to develop and commercialise technology-based innovation. The advantage of strategic alliances over the traditional hierarchical and market-like organisational forms has been evident in high-tech markets, featured by high degree of resource specificity and intense need for know-how transfer. Drawing from several theories, the paper proposes a novel contingency model to explain how organisations decide on the governance structure of alliances by taking into account their strategic motivations and a number of contextual factors. The model is applied to a real-life case study in the wireless market to demonstrate its applicability.

Learning in strategic technology alliances

In this paper we examine the influence of strategic technology alliances on organisational learning. From an empirical perspective we examine the pre- and post-alliance knowledge bases of allying firms. We find that the pre-alliance knowledge base overlap of the allying firms has an inverted U-shaped relationship with the degree of learning taking place in the alliance. Alliances established for the purpose of learning also show a significantly greater increase in knowledge base overlap for the allying firms than for non-learning alliance or non-allying firms. This shows the particular importance of learning alliances as a vehicle for organisational learning and competence development. Contrary to what we expected we found that weak ties are more important than strong ties in organisational learning within strategic alliances.

Adopting a lifecycle perspective to explain the transition from technological innovation to alliance management

Innovative technology‐based products and services are often the result of the syndication of skills and resources of more than one firm. Such inter‐firm arrangements – i.e. strategic technology alliances – need to balance innovation with sustainability, an issue requiring explicit management attention. This paper discusses the issues faced by management within this context. The paper argues that strategic technology alliances require a new set of management practices targeting issues at the inter‐firm level, acknowledging and addressing inter‐firm evolution and the impact this has on the nature and severity of topics on the management agenda. The paper proposes a management framework at the inter‐firm level, with topics arranged according to an inter‐firm lifecycle perspective. Topics for managerial attention and action for the stages of initiation, configuration, implementation, stabilization and transformation are identified. Finally, the paper illustrates the utility of this framework by applying it to a strategic technology alliance case in the process of transition from initiation to commercialization.

Cooperative Strategy, Technology Innovation and Competition Policy in the United States and the European Union

The widespread adoption of joint ventures in the 1980s and strategic alliances in the 1990s by a spectrum of businesses across industries has resulted in cooperative strategy emerging as the corporate and business strategy of the global economy. Of further significance, however, is the relaxation by antitrust authorities in the USA and the EU of policies forbidding or restricting horizontal or competitor collaborations. Beginning in the 1980s, legislation, regulations and guidelines have established a business environment conducive to competitor collaborations. This evolution in competition policy is justified by the need for accelerating technology-based innovations at the firm level, thus improving competitiveness at the national level. The US government and the European Commission have provided firms with "safe harbors' to develop strategic technology alliances with competitors, albeit with notable differences in specific market share thresholds and emphases on qualitative versus quantitative perspectives in their respective competition policy frameworks.

The small worlds of strategic technology alliances

This paper analyzes the phenomenon of strategic technology alliances. It is proposed that the concept of small worlds, which has been adopted from mathematical graph theory, is a useful model to combine two theoretical streams that have previously analyzed this phenomenon. These are the theory of social capital and the theory of structural holes. We outline a small worlds model, and apply it to data on strategic technology alliances. We find that networks of strategic technology alliances can indeed be characterized as small worlds, and that this has favorable implications for knowledge transfer. There are, however, also important differences between two different technology fields that we consider: chemicals and food, and electricals.