Vertical technology alliances: The impact of technological depth and breadth on alliance governance structure

Mohammad Saleh Farazi, Shanthi Gopalakrishnan, Ana Perez-Luño

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

New high-tech firms have extensively used strategic alliances with large incumbent partners to access complimentary resources and capabilities and to finance their technology projects. However, due to their initially weak bargaining position, they tend to relinquish a disproportional amount of control rights to the larger firm that finances the R&D alliance. This raises the question: How can new high-tech firms, e.g. biotech firms, leverage their knowledge resources to retain control in alliance with larger partners, e.g. pharmaceutical incumbent firms? And, does alliance experience add to their leverage? Focusing on equity and non-equity types of alliance governance, we examine how the firm's depth and breadth of technological knowledge resources impact the choice of governance structure. Our findings suggest that high-tech firms with deeper technological resources are better able to retain control when allying with the larger firm. The relationship is stronger when the new firm has more alliance experience.

Original languageEnglish (US)
Title of host publicationPICMET 2016 - Portland International Conference on Management of Engineering and Technology
Subtitle of host publicationTechnology Management For Social Innovation, Proceedings
EditorsTimothy R. Anderson, Dundar F. Kocaoglu, Kiyoshi Niwa, Gary Perman, Dilek Cetindamar Kozanoglu, Tugrul U. Daim
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages945-956
Number of pages12
ISBN (Electronic)9781509035953
DOIs
StatePublished - Jan 4 2017
Event2016 Portland International Conference on Management of Engineering and Technology, PICMET 2016 - Honolulu, United States
Duration: Sep 4 2016Sep 8 2016

Publication series

NamePICMET 2016 - Portland International Conference on Management of Engineering and Technology: Technology Management For Social Innovation, Proceedings

Other

Other2016 Portland International Conference on Management of Engineering and Technology, PICMET 2016
Country/TerritoryUnited States
CityHonolulu
Period9/4/169/8/16

All Science Journal Classification (ASJC) codes

  • Information Systems and Management
  • Engineering (miscellaneous)
  • Management of Technology and Innovation
  • Medicine (miscellaneous)
  • Management Science and Operations Research

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