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Alliance Dynamics for Entrepreneurial Firms
Author(s) -
Ariño Africa,
Ragozzino Roberto,
Reuer Jeffrey J.
Publication year - 2008
Publication title -
journal of management studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.398
H-Index - 184
eISSN - 1467-6486
pISSN - 0022-2380
DOI - 10.1111/j.1467-6486.2007.00745.x
Subject(s) - alliance , business , corporate governance , transaction cost , industrial organization , database transaction , adaptation (eye) , strategic alliance , entrepreneurship , finance , physics , optics , political science , computer science , law , programming language
Small firms are thought to encounter various difficulties implementing strategic alliances. Due to these problems, they may be less able to reap the benefits of alliance adaptation, and the changes that do occur in alliances may not coincide with a small firm's interests. The evidence we present on contractual renegotiations in alliances suggests that small firms are no more or less likely to adjust their alliances’ contracts in general. However, small firms tend to bear inefficiencies of two kinds in their collaborations. First, they are less likely to adapt alliances in the presence of governance misalignments. Second, our sampled small firms were more prone to make transaction‐specific investments, which can stimulate ex post hold‐up in the form of contractual renegotiations.