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Surviving bear hugs: Firm capability, large partner alliances, and growth
Author(s) -
Vandaie Ramin,
Zaheer Akbar
Publication year - 2014
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.2115
Subject(s) - alliance , extant taxon , studio , perspective (graphical) , marketing , dimension (graph theory) , yield (engineering) , business , industrial organization , economic geography , economics , political science , computer science , telecommunications , materials science , mathematics , evolutionary biology , artificial intelligence , metallurgy , pure mathematics , law , biology
In exploring the downsides of partnering with large firms, extant literature has typically focused on the external perspective and the alliance characteristics of small firms. We argue that jointly considering the internal dimension of firm capability together with the external perspective promises to yield a fuller understanding of the nature and consequences of a small firm's relationships with large partners. We analyze a longitudinal dataset on the alliance activities and growth of small, independent studios in the U.S. motion picture industry during 1990–2010. Our findings indicate that small firms that engage in higher levels of alliance activity with large partners, i.e., the major studios, realize lower growth benefits from their internal capability . Copyright © 2013 John Wiley & Sons, Ltd.