Premium
Post‐formation dynamics in strategic alliances
Author(s) -
Reuer Jeffrey J.,
Zollo Maurizio,
Singh Harbir
Publication year - 2002
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.214
Subject(s) - alliance , transactional leadership , scope (computer science) , business , corporate governance , relevance (law) , industrial organization , transaction cost , dynamics (music) , opportunism , marketing , economics , management , political science , market economy , sociology , finance , pedagogy , computer science , law , programming language
This paper investigates the occurrence and determinants of post‐formation governance changes in strategic alliances, including alterations in alliances' contracts, boards or oversight committees, and monitoring mechanisms. We examine alliances in the biotechnology industry and find that firms' unique alliance experience trajectories affect the likelihood of such ex post adjustments in these partnerships. Transactional features such as the alliance's scope, its division of labor, and the relevance of the collaboration to the parent firm also bear upon alliances' dynamics. We discuss the implications of these findings and how they complement prior research focusing on alliance design or termination at opposite ends of the alliance life cycle. Copyright © 2002 John Wiley & Sons, Ltd.