Post-formation dynamics in strategic alliances

• Published in: Strategic management journal Vol. 23; no. 2; pp. 135 - 151
• Main Authors: Reuer, Jeffrey J., Zollo, Maurizio, Singh, Harbir
• Format: Journal Article
• Language: English
• Published: Chichester, UK John Wiley & Sons, Ltd 01-02-2002; John Wiley and Sons; Wiley; Wiley Periodicals Inc
• Subjects: Adaptation; Alliances; Applied sciences; Biotechnology; Biotechnology industry; Business; Business management; Business strategies; Business structures; Collaboration; Committees; Corporate governance; Corporate strategies; Decision making; Division of labor; Economics; Enterprises; evolutionary economics; Exact sciences and technology; experience accumulation; Firm modelling; Governance; Hypotheses; International alliances; Joint ventures; Life cycle; Management; Operational research and scientific management; Operational research. Management science; Organization theory; Organizational behavior; organizational capabilities; Statistical analysis; strategic alliances; Strategic behaviour; Studies; transaction cost theory; Transaction costs; United States > US; Organization management; Transaction cost; Capability; Cooperation; Alteration; Enterprise organization; Firm strategy
• ISSN: 0143-2095; 1097-0266
• DOI: 10.1002/smj.214

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.