TY - GEN
T1 - Vertical technology alliances
T2 - 2016 Portland International Conference on Management of Engineering and Technology, PICMET 2016
AU - Farazi, Mohammad Saleh
AU - Gopalakrishnan, Shanthi
AU - Perez-Luño, Ana
N1 - Publisher Copyright:
© 2016 Portland International Conference on Management of Engineering and Technology, Inc.
PY - 2017/1/4
Y1 - 2017/1/4
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=85016185703&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85016185703&partnerID=8YFLogxK
U2 - 10.1109/PICMET.2016.7806732
DO - 10.1109/PICMET.2016.7806732
M3 - Conference contribution
AN - SCOPUS:85016185703
T3 - PICMET 2016 - Portland International Conference on Management of Engineering and Technology: Technology Management For Social Innovation, Proceedings
SP - 945
EP - 956
BT - PICMET 2016 - Portland International Conference on Management of Engineering and Technology
A2 - Anderson, Timothy R.
A2 - Kocaoglu, Dundar F.
A2 - Niwa, Kiyoshi
A2 - Perman, Gary
A2 - Kozanoglu, Dilek Cetindamar
A2 - Daim, Tugrul U.
PB - Institute of Electrical and Electronics Engineers Inc.
Y2 - 4 September 2016 through 8 September 2016
ER -