Resource-based View of Strategic Alliance Formation: Strategic and Social Effects in Entrepreneurial Firms

“In other instances potential partners may simply lack the relational capability or the relation-building skills and process skills necessary to employ effective governance mechanisms, make relation-specific investments, or develop knowledge-sharing routines ( Eisenhardt & Schoonhoven, 1996; Larson, 1992).”

“1988; Hagedoorn and Schakenraad, 1990; Eisenhardt and Schoonhoven, 1996 ).”

“The few studies that have applied the resource-based perspective to strategic alliances cover only limited aspects (e.g., Blodgett, 1991; Eisenhardt & Schoonhoven, 1996; Kogut, 1988; Mowery, Oxley, & Silverman, 1998; Rouse & Daellenbach, 1999; Tyler & Steensma, 1995, 1998; Varadarajan & Cunningham,…”

“Although young firms often seek to establish links with ther firms in order to enhance their reputation and image (Eisenhardt and Schoonhoven, 1996; Hitt et al., 2000), the learning benefits of such exposure are also important.”

“Eisenhardt and Schoonhoven (1996) found that firms with large top management teams, or with top managers who were also employed by other industry employers, or with top managers who were higher ranking executives in other firms were more likely to form strategic alliances.”

“…Uzzi 1996), interlocking affiliations among corporations (Mizruchi 1992, Davis et al. 2003), or formal, contractually defined, strategic alliances (Eisenhardt and Schoonhoven 1996, Powell et al. 1996), networks are an essential component of markets because they channel and direct flows of…”

“Thus,Eisenhardt and Schoonhoven (1996)were among the first to document a relationship between social aspects of executive demography and firm strategy.”

“The work of Eisenhardt and Schoonhoven (1996) suggests that the market context in which a new venture is immersed explains differences in the networking 7 These results should be reconciled with the work of Dodd (1997) who found that entrepreneurs did not report belonging to social groups at a…”

“Thus, competition—in the form of competitive strategy, benchmarking, learning to consistently outperform competitors, strategic position, and so forth—forms the basis of many strategic management perspectives (Ei enhardt & Schoonhoven, 1996).”

“…of developing innovation in conjunction with external, oftentimes larger partners proposes that especially new and small firms rarely have the resources and capabilities to respond to the innovation demands at any given time (Eisenhardt and Schoonhoven, 1996; Jarillo, 1989; Yli-Renko et al., 2001).”

“Drawing upon resourcedependence theory (Pfeffer and Salancik, 1978) and the resource-based view of the firm (Penrose, 1957), several studies (Eisenhardt and Schoonhoven, 1996; Gulati, 1999; Rothaermel, 2001; Van De Ven and Walker, 1984) have viewed alliances as a quest for resources.”

“…to new markets and technologies (Grandori and Soda, 1995); speeding products to market (Almeida and Kogut, 1999); pooling complementary skills (Eisenhardt and Schoonhoven, 1996; Hagedoorn and Duysters, 2002); safeguarding property rights when complete or contingent contracts are not possible…”

“Empirical studies of alliance formation assume that search for new capabilities and strategic interdependencies within limited social contexts drive partner selection (e.g., Gulati 1995, Eisenhardt and Schoonhoven 1996 ).”

“Collaborating with non-traditional partners: understanding the social context Ventures facing challenging new environments usually need to turn to partner organizations for missing resources and expertise ( Eisenhardt and Schoonhoven, 1996 ).”

“Previous studies (see for instance,McGee et al., 1995; Eisenhardt and Schoonhoven, 1996; Stuart et al., 1999; Lee et al., 2001) suggest that alliances with larger corporations may provide NTBFs with access to much needed complementary commercial assets (i.e., sale force, brand name, customer care,…”

“, Franko 197 la, Kogut 1988) attribute the instability of joint ventures to the tensions between parent firms, and between parent firms and the ventures. According to Kogut (1989), because competitive incentives among the partners and a lack of reciprocity are at odds with interfirm cooperation, joint ventures tend to…”

“Additionally, firms may form strategic partnerships to access or acquire unique and valuable resources that they lack, or leverage ‘‘social’’ resources, such as reputation, status, and legitimacy (Eisenhardt and Schoonhoven, 1996).”

“Much of this work centers on single-boundary decisions using resource dependence and social network logics (Eisenhardt & Schoonhoven, 1996; Gulati & Higgins, 2003), but a few studies examine entrepreneurs as they form holistic patterns of ties.”

“Because they have more employees, larger firms may have wider-reaching industry contacts, leading to more extensive personnel networks and greater knowledge of alliance opportunities (Eisenhardt and Schoonhoven, 1996).”

“Researchers pursuing a related stream of research have focused on knowledge transfer from a recipient organization's perspective and investigated knowledge diffusion and the interorganizational social structure created by executive migration (Aldrich & Pfeffer, 1976; Boeker, 1997).”

“Eisenhardt and Schoonhoven (1996) argue that firms enter into strategic partnerships either to gain access to or acquire unique and valuable resources that they lack, or to leverage ‘‘social’’ resources, such as reputation, status, and legitimacy.”

“Both TC (Williamson 1991, Balakrishnan and Koza 1993, Hennart 1988, 1991) and RB (Eisenhardt and Schoonhoven 1996, Hamel et al. 1989) arguments have been used independently as a basis for furthering understanding of collaborations between firms.”

“External vulnerability can arise if new competitors are entering the market or if the firm itself is trying pioneering technologies (Eisenhardt and Schoonhoven 1996).”

“For example, although not specific about the desired resources, scholars studying new firms show that these firms form ties with established firms when they depend on them for resources (Shan, 1990; Eisenhardt and Schoonhoven, 1996; Ozcan and Eisenhardt, 2008).”

“…are likely to consider not only prospective partners resource endowments to ensure complementary contributions that promise high payoffs ways (Eisenhardt & Schoonhoven, 1996; Pfeffer & Salancik, 1978), but also try to assess their integrity, reputation, and likely commitment to the…”

“(Cooke, 2016; Eisenhardt & Schoonhoven, 1996) This requires a dynamic network approach to EE which is still lacking (Ter Wal & Boschma, 2011).”

“…chain management research, with Rungtusanatham et al. (2003) suggesting that linkages represent a form of inter‐firm relationship and that RBT has been used multiple times to investigate such relationships (Eisenhardt and Schoonhoven, 1996; Mowery et al., 1996; Lorenzoni and Lipparini, 1999).”

“…perspective, focusing on the structural dimensions of networks and social systems (Burt, 1982; White, 1981), as well as a more recent focus on content and process of exchange relations (Eisenhardt & Schoonhoven, 1996; Gulati, 1995a, 1995b; Uzzi, 1996, 1997; Uzzi & Gillespie, 1999a, 1999b).”

“As far as questions about the industry (environment) versus company (strategy) effects are concerned, our study supports those approaches that stress the relevance of both company-specific and environmental factors (Eisenhardt and Schoonhoven, 1996).”

“This is the case with the documents that analyze organizational relations and relational rents (Dyer, 1996; Dyer and Singh, 1998; Eisenhardt and Schoonhoven, 1996).”

“…informal affi liations among corporations (Mizruchi, 1992; Davis, Yoo, and Baker, 2003), or contractual alliances that formally link organizations (Eisenhardt and Schoonhoven, 1996; Powell, Koput, and Smith-Doerr, 1996), networks have been shown to play a key role in shaping both knowledge fl ows…”

“Similarly to Eisenhardt and Schoonhoven (1996) and Baron et al. (1999), we found that founding team size had a positive effect on future revenue.”

“Prior positions in different firms in the focal industry increases the number of links that directors have developed with various industry players, which then creates more leads for the focal firm (Eisenhardt & Schoonhoven, 1996).”

“External factors such as environmental conditions of uncertainty (Weaver, Dickson, and Gibson 1997) and market conditions of high competition (Eisenhardt and Schoonhoven 1996) force small companies to look for larger partners.”

“Prior research has measured technological performance as a function of a primary indicator of transistor density, the line width, or feature size, at which information is etched onto a semiconductor circuit (e.g., Eisenhardt and Schoonhoven, 1996; West and Iansiti, 1998).”

“…to the literature on inter-organizational relationships, much of which again emphasizes positive outcomes for firms involved in such ties (e.g., Eisenhardt and Schoonhoven 1996; Rothaermel 2001, 2002; Gulati and Higgins 2003; Gulati et al. 2009) and the role of hub firms in creating value in…”

“In this sense, by relying on the resource-based approach, together with the literature focused on the study of SMEs’ competitiveness, it seems reasonable to study management characteristics—representing intangible resources and capabilities—that may be fundamental for their competitiveness: technological resources and…”

“Social networks have been found to be reliable predictors of alliance formation in prior studies across different industries and time frames (Podolny, 1994; Gulati, 1995b; Eisenhardt and Schoonhoven, 1996; Ahuja, 2000; Chung et al., 2000).”

“Eisenhardt and Schoonhoven (1996) noted that new”

“…of why firms form strategic alliances are manifold: to access new valuable resources from partners (Chung et al., 2000; Das & Teng, 2000; Eisenhardt & Schoonhoven, 1996; Lavie, 2006), to reduce transaction costs (Kogut, 1988), to learn from a partner (Inkpen, 2000; Kogut, 1988), to deal…”

“Hellmann and Puri (2000), for example, find that among a sample of technology-based start-ups in Silicon Valley, those funded by VCs brought their products to market faster.”

“In the resource-based view, on the other hand, collaborations can be used to exploit resource complementarities (Barney, 1991; Das and Teng, 2000; Eisenhardt and Schoonhoven, 1996; Hitt et al., 2000; Lavie, 2006; Mowery et al., 1996).”

“Indeed some of the resources they rely on are the relationships they create with other organizations (Eisenhardt and Schoonhoven 1996) and their internal organizational culture (Barney 2001).”

“To outperform their competitors, firms are increasingly motivated to seek complementary resources and develop new capabilities through collaboration with other firms and even longstanding competitors in the form of both informal and formal networks such as strategic alliances (Eisenhardt and Schoonhoven, 1996; Das and…”

“Popular theories that have been applied to strategic alliances include transaction cost economics (Williamson, 1985), game theory (Parkhe, 1993), exchange theory (Gulati, 1995), strategic behavior model (Hagedoorn, 1993), dialectical model (Das & Teng, 1996a), and resource-based view of the firm ( Eisenhardt & Schoonh…”

“We know from extant research that entrepreneurs often cultivate and use social networks to access resources (e.g., capital, knowledge, supplies) that facilitate new venture growth (Eisenhardt & Schoonhoven, 1996; Granovetter, 1995; Kim & Aldrich, 2005; Stam & Elfring, 2008; Stuart & Sorenson, 2007).”

“…alliance management capability as a specific dynamic capability designed to modify the organization’s resource base, because R&D alliances (i.e., as opposed to production or marketing alliances) are more clearly directed toward accessing and obtaining new resources (Eisenhardt & Schoonhoven, 1996).”

“technological capabilities, which in-turn improves a firm’s innovation capabilities ( Eisenhardt & Schoonhoven, 1996 ).”

“The MNC as a Knowledge Network The idea that foreign direct investment is driven by a firm’s knowledge assets can be traced back to the pioneering work of Hymer (1959) and the subsequent developments by Caves (1971), Buckley and Casson (1976), Teece (1986), and others.”

“Similarly, while we know that both midlevel (Rosenkopf, Metiu, & George, 2001) and top management team social capital (Eisenhardt & Schoonhoven, 1996), as well as board interlocks (Gulati & Westphal, 1999), can translate directly into interorganizational alliances, much network research still…”

“Similarly, emerging market firms sought partners that helped them secure access to resources that they lacked, namely financial and technical resources, and strategic positions in the marketplace.”

“NTBFs with larger founding teams composed of more educated and more experienced individuals can benefit from the network of business relations of their founders (Eisenhardt and Schoonhoven, 1996).”

“An organization’s ability to form network ties, and thus alter its network position, is restricted by its attractiveness to potential partners (Eisenhardt and Schoonhoven, 1996).”

“Since Hamel, Doz and Prahalad (1989) first suggested that alliances should be viewed as learning opportunities, several studies have supported this idea (e.g., Gulati 1995; Eisenhardt and Schoonhoven 1996).”