1 Joint Ventures and Alliances

Do joint ventures and strategic alliances create value for bondholders?

This paper investigates whether joint ventures and strategic alliances create value for bondholders by examining the bond market’s reaction to announcements of these two types of cooperative business activities. Based on 2964 announcements from 1985 to 2011, we find that joint ventures and strategic alliances create significant value for bondholders. The average two-month abnormal bond return i...

Do Firms Learn to Create Value? the Case of Alliances

We investigate whether firms learn to manage interfirm alliances as experience accumulates. We use contract-specific experience measures in a data set of over 2000 joint ventures and licensing agreements, and value creation measures derived from the abnormal stock returns surrounding alliance announcements. Learning effects are identified from the effects of unobserved heterogeneity in alliance...

On the Dynamics of Innovative Strategic Alliances in Korea

The purpose of this study is to model the formation and success of innovative strategic alliances and international joint-ventures, in particular, for Korea. Especially for such high risky market entries it is argued that incorporating a suitable treatment of irreversibility, uncertainty and flexibility related to a multinational enterprise (MNE) entry decision gives further insights to the exp...

Should Executives Consider the Rarity of IT Resources When Courting Alliance Partners?

Rarity has important implications with respect to information technology (IT) resources, enabling firms to develop competitive advantage. We study the effect of firms’ possession of rare technology (IT) resources in the formation of alliances and its effect on firm performance. Using text-mining techniques, we measure the rarity of the 488 technology keywords present in a text corpus from 81,26...

Collaboration: the new core competency in an era of joint ventures and alliances

Comparison between Alliances, Networks, and Joint Ventures: What Management Techniques are in place

This paper surveys literature in the strategy area with a view to investigating the usage of the concept ‘network’. It is obviously used a lot, but not in an analytically very strong way. Being the ‘hybrid’ between markets and hierarchies, the concept ‘network’ can account for almost any relation between firm including formal arrangements such as alliances, joint ventures and supply chains or s...