| Sustaining strategic partnerships between entrepreneurial firms: An outcome/legitimacy-based approach |
| | Erwin, Craig | U. of Arizona | cerwin@dakotacom.net | (520)-621-1053 |
| | Provan, Keith G. | U. of Arizona | kprovan@bpa.arizona.edu | 520-621-1950 |
| | It is not uncommon for entrepreneurial firms to attempt to leverage themselves by establishing cooperative partnerships with other entrepreneurial firms in the same industry. Although some of these partnerships are successful, many fail in the early stages. We are interested in the factors that enable horizontal partnerships between entrepreneurial firms to last. We posit that a partnership's legitimacy to internal and external stakeholders, is vital to its continuity and that legitimacy is based on transactional and transformational outcomes resulting from the relationship. We also contend that internal stakeholders value outcomes differently than do external stakeholders. Propositions are developed on the role of outcomes, embeddedness and legitimacy in the sustainment or dissolution of horizontal partnerships between entrepreneurial firms. Potential implications of our theory for managers are also discussed. |
| | Keywords: entrepreneurial firm; inter-firm relationship; stakeholder |
| Technology Portfolios and Alliance Formation in New Firms |
| | Kelley, Donna J. | Rensselaer Polytechnic Institute | amherstac@aol.com | (413) 256-0491 |
| | Rice, Mark P. | Rensselaer Polytechnic Institute | ricem@rpi.edu | 518-276-8398 |
| | This paper uses a knowledge-based perspective to study how new firms, by building technology portfolios, can pursue alliance relationships. New firms operating in high-technology industries need to expand their technology sets in order to remain competitive. Yet these firms suffer from an inherent lack of resources for investing sufficiently in building and maintaining new technologies. By forming alliances, these firms can use the proprietary assets of their partners to leverage the advantage of their technology resources. But to attract potential partners, the firm needs a portfolio of codified technologies that communicates its value to others.
We examine patenting and alliance activities in sixty new firms from the computer and telecommunications industries to determine if an early period of technology portfolio development can lead to a superior foundation for subsequent alliance activity. Our analysis reveals no difference in alliance formation rate for firms having technology portfolios over those having none. Yet when we take into account the importance of these portfolios, we find significant advantages for firms with important technology portfolios over those with less important portfolios. We conclude that, among patenting firms, the importance of technology portfolios is positively associated with alliance formation rate.
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| | Keywords: Knowledge; Patents; Alliances |
| Young Entrepreneurial Firms and the Liabilities of International Joint Venture Relationships |
| | Steier, Lloyd P. | U. of Alberta | lsteier@ualberta.ca | (403) 492-5176 |
| | Given the importance of small firms and collaboration in the global economy, forging productive partnerships
requires a clearer understanding of the dynamics of the international joint venture (IJV) relationship. While firm
performance has been clearly linked to a firms network of relationships, IJV relationships are known to represent
a highly unstable organizational form. Responding to the call for more research that clarifies the reasons for this
instability, this paper examines an IJV within the context of a young entrepreneurial firm. It adopts a "relational
view" of competitive advantage and focuses on the management and organization of a joint venture throughout the
life of the relationship from initiation until dissolution. The findings clarify some of the reasons why, from the
perspective of a young entrepreneurial firm, international joint venture relationships are inherently unstable.
Theoretical propositions are presented relative to the liabilities that accompany the IJV relationship. These
liabilities include: a compounded liability of newness, hyper-optimistic imperialism, multi-party governance,
smallness, opportunism, co-ordination and control, and cultural distance. |
| | Keywords: International; Entrepreneurship; Joint-Venture |