This study examines what factors determine the choice of governance structure made by
alliance partners in the ICT-industry. First, the explanatory power of the transaction cost
theory, the resource-based view, the structural contingency approach, strategic choice theory,
resource dependence theory, organisational ecology and principal agent theory to answer this
question is surveyed. A deeper analysis using transaction cost theory, resource-based view
and structural contingency approach is employed to develop three models of alliance
structuring. Propositions related to the models are then tested on a sample of 101 strategic
alliances in the ICT-industry. The findings suggest that there exist five influential factors: (1)
the existence of alliance-specific investment by the partners, (2) the number of functional
areas contained by the alliance, (3) a limited duration of the alliance, (4) the type of resources
contributed by the partners, and (5) uncertainty of the tasks of the alliance. These factors are
then recombined to form one integrated model. The success of this approach and the
usefulness of such a modelling approach in general are discussed alongside future directions
for research.
Table of Contents
1. INTRODUCTION
2. THEORETICAL BACKGROUND AND PREVIOUS WORK
2.1. Approach to Construct the Theoretical Framework
2.2. Definitions of Strategic Alliances
2.3. Classifications of Strategic Alliances
2.4. Review of Previous Work
2.5. Review of Theoretical Approaches
2.6. Theoretical Framework and Propositions For This Study
3. METHODOLOGY
3.1. Objective of the Survey
3.2. Unit of Analysis
3.3. Methods of Data Collection
3.4. Methods of Analysis
4. RESULTS
4.1. Findings of Univariate Analysis
4.2. Findings of Bivariate Analysis
4.3. Findings of Multivariate Analysis
5. DISCUSSION
5.1. Position of the Sample
5.2. Factors of the Governance Choice
5.3. The Explanatory Power of an Integrated Approach
5.4. Contributions and Implications
6. CONCLUSIONS
7. REFERENCES
8. APPENDICES
Research Objectives and Themes
This dissertation investigates the determinants of governance structure choices made by alliance partners within the ICT industry, specifically seeking to understand why companies select certain organizational arrangements for their alliances. By applying multiple organizational theories, the study constructs and tests integrated models to explain these choices based on transaction, resource, and environmental factors.
- Application of multiple organizational theories to explain alliance governance.
- Testing of eight falsifiable propositions regarding governance structure choice.
- Empirical analysis of 101 strategic alliances within the ICT sector.
- Development of an integrated modelling approach for alliance structuring.
- Assessment of the explanatory power of transaction, resource, and contingency-based factors.
Excerpt from the Book
2.2. Definitions of Strategic Alliances
Strategic alliances have been defined in a variety of ways, which poses the danger of misunderstandings (Porter and Fuller, 1986) and complicates the comparison of research results (Mowery, 1992). Williamson’s (1975) market-hierarchy-dichotomy marks the boundaries of definitions, i.e. strategic alliances can be placed somewhere within the range from pure market exchange to internalisation (Figure 1). In a very broad definition, a strategic alliance can be regarded as “contractual agreement among firms to cooperate to obtain an objective without regard to the legal or organizational form the alliance takes” (Chan and Heide, 1993:9). Other authors narrow their definition down to exclude certain forms of co-operation. For instance, Dussauge and Garrette (1998) exclude mergers and acquisitions by pointing out that the partner firms have to retain their legal autonomy. Further, the long-term orientation of the inter-firm relation is used as a criterion to distinguish strategic alliances from licensing (Narula and Hagedoorn, 1999). Also the degree to which the agreement is codified makes a difference in definitions. While some authors include handshake agreements, others understand only codified, i.e. written agreements, as alliances.
Many definitions commonly state that an alliance is understood as an inter-firm linkage in which two or more firms establish a relationship and contribute or exchange either tangible or intangible resources (Lu, 1995). For the purpose of this thesis, a strategic alliance will be defined as a contractual agreement with or without equity commitment, between at least two economically independent firms that exchange tangible and/or intangible resources over several distinct transaction periods to pursue common goals. A firm is considered as economically independent when a formal possible exit from the co-operation would not endanger its economic existence (Schneider, 1973). Thus, mergers and acquisitions, subsidiaries and franchises are excluded by this definition of strategic alliances.
Summary of Chapters
1. INTRODUCTION: Outlines the significance of strategic alliances in the ICT sector and identifies the research gap regarding governance structure choices.
2. THEORETICAL BACKGROUND AND PREVIOUS WORK: Reviews existing organizational literature to build a theoretical foundation and develops three distinct models for alliance governance based on selected theories.
3. METHODOLOGY: Details the research design, data collection methods using literature-based alliance counting, and the statistical techniques used for analyzing the sample of 101 alliances.
4. RESULTS: Presents the findings from univariate, bivariate, and multivariate analyses, identifying key factors influencing governance structure choices.
5. DISCUSSION: Critically evaluates the empirical results, discusses the validity of the models, and explores the implications for existing theories and future research.
6. CONCLUSIONS: Summarizes the study's contributions, the identified drivers of alliance governance, and the potentials/pitfalls of the integrated modelling approach.
Keywords
Strategic Alliances, ICT Industry, Governance Structure, Transaction Cost Theory, Resource-Based View, Structural Contingency Approach, Alliance Structuring, Joint Ventures, Contracts, Organizational Theory, Empirical Modelling, Governance Choice, Resource Exchange, Task Uncertainty, Opportunism.
Frequently Asked Questions
What is the core focus of this research?
The research focuses on identifying the specific factors that determine the choice of governance structures—such as contracts versus joint ventures—among alliance partners in the ICT industry.
What are the primary theoretical themes covered?
The study primarily utilizes Transaction Cost Theory (TCT), the Resource-Based View (RBV), and the Structural Contingency Approach (SCA) to analyze and model governance decisions.
What is the primary research objective?
The objective is to move beyond single-theory explanations by constructing an integrated model to determine which alliance characteristics lead firms to choose specific governance modes.
What methodology does the study employ?
The study uses a deductive approach with secondary data collected through "literature-based alliance counting" from 101 alliances in the ICT sector, applying statistical methods including Pearson's chi-square tests and binary logistic regression.
What does the main body of the work address?
The main body systematically reviews theoretical backgrounds, derives testable propositions, describes the data analysis process, and provides a rigorous discussion of how specific variables, such as resource types and transaction costs, correlate with governance choices.
Which keywords best characterize this work?
Strategic Alliances, ICT Industry, Governance Structure, Transaction Cost Theory, Resource-Based View, Structural Contingency Approach, and Empirical Modelling.
How is "Strategic Alliance" defined in this study?
The author defines it as a contractual agreement, with or without equity commitment, between at least two economically independent firms that exchange tangible or intangible resources over multiple transaction periods to pursue common goals.
How does the author view the "Mintzberg's Elephant" analogy in this context?
The author uses this analogy to argue that while individual organizational theories offer limited explanatory power, the integration of multiple theoretical approaches provides a more comprehensive picture of the factors driving alliance governance choices.
- Quote paper
- Sascha Walter (Author), 2002, The Structuring of Strategic Alliances in the ICT-Industry: A Modelling Approach Using Selected Organisational Theories, Munich, GRIN Verlag, https://www.grin.com/document/15704
