Session Summary

Session Number:843
Session ID:S447
Session Title:Strategies for Strategic Technology Alliances: Contingencies and Contraints Over Time
Short Title:Strategic Technology Alliances
Session Type:Division Paper
Hotel:Hyatt West
Floor:LL3
Room:Stetson E
Time:Tuesday, August 10, 1999 10:30 AM - 11:50 AM

Sponsors

TIM  (Deborah Dougherty)doughert@business.rutgers.edu (973) 353-1664 

General People

Discussant Schilling, Melissa A. Boston U. melissa1@bu.edu (617)-353-2657 
Chair Ulhoi, John P. Aarhus School of Business john.ulhoi@mar.hha.dk 45 8948 6459 

Submissions

Strategic Alliances and Product Development: An Emprical Study of the U.S. Semiconductor Start-up Firms 
 Chen, Roger  U. of San Francisco chenr@usfca.edu (415)-422-6546 
 Li, Mingfang  California State U., Northridge mli@csun.edu 818-677-2421 
 New product development assumes an important role in an organization's strategy and its long term success. Strategic alliances are also widely used. The linkage between the two then becomes an important research topic. Based on the strategic alliance and organizational learning literature, this study theorized and empirically tested the linkage between key dimensions of strategic alliances and new product development. The empirical analysis of semiconductor firms reveals that actively accessing technology helps new product development, while accessing or providing R&D not only fails to benefit a firm's product development, it can be detrimental to a firm's new product development. In addition, the openness of alliance partners will help new product development. Contributions, practical implications and future research are considered.
 Keywords: New Product Development; Strategic Alliances; Organizational learning
Strategic Alliances and Firm Growth in Schumpeterian Competition 
 Lee, Jeho  Korea Advanced Institute of Science and Technology jlee@kgsm.kaist.ac.kr 82 2 958 3678 
 Park, Seung-Ho  Rutgers U. park@everest.rutgers.edu 732 445-4458 
 Ryu, Young  U. of Texas, Dallas ryoung@utdallas.edu (972) 883-4065 
 This paper utilizes a computer simulation model to examine whether cost-sharing R&D alliances are conducive to long-term survival of the partners under the increasing-returns regime of Shumpeterian competition. Despite a recent surge of interest on strategic alliances, there is still little understanding of long-term gains in R&D alliances. The simulation results present a surprising outcome that casts doubt on the long-term attractiveness of alliances compared to independent research. Managing innovations through strategic alliances appears to be a losing game, particularly when the primary motive of collaboration is to share costs. Collaborating firms are less likely to survive than non-collaborating firms at least in the long run due to the welfare loss and conflicts between partners. Collaborative research offers advantage only when the welfare loss and alliance costs become very small. The simulation results confirm that long-term outcomes of strategic alliances, in particular cost-saving alliances, depend on successful management of conflicts that arise in the process of collaboration.
 Keywords: Strategic alliances; Schumpeterian competition; Firm growth
Task Partitioning, Communication Activities, and the Performance of Supplier Relations in New Product Development: An Empirical Analysis 
 Sobrero, Maurizio  U. of Bologna mau@economia.unibo.it +39-051-258076 
 Toulan, Omar Nohad McGill U. toulan@management.mcgill.ca (514)-398-4036 
 Supplier involvement in new product development projects is increasingly being used as a way for leveraging external knowledge quickly and at lower costs. Despite an almost global growing support for such practices, however, the organizational implications of alternative solutions as to the structuring of joint problem solving activities or communication flows among the partners are still largely unexplored. In this paper we present a study conducted in the Fall of 1998 within the Volvo Car Corporation (VCC) on 47 relationships with suppliers for the development of components for one of its base engines. We build on design and organizational contingency theories to show that a systemic fit between supplier's competencies and responsibilities positively affect its performance within the project. Moreover, we analyze and discuss the distribution of relationship specific knowledge as well as relationship management practices as critical areas of managerial attention to efficiently leverage the resources involved.
 Keywords: supplier relations; new product development; communication patterns
Sourcing Strategies in New Product Development: Trade-Offs Between Internal and External Learning  
 Kessler, Eric H. Pace U. ekessler@fsmail.pace.edu (212)-346-1846 
 Bierly, Paul E. James Madison U. bierlype@jmu.edu (540)-568-3236 
 Gopalakrishnan, Shanthi  Fairleigh Dickinson U. sgopalakr@alpha.fdu.edu (201)-692-7231 
 The purpose of this study was to investigate how different technology sourcing strategies throughout the new product development process influence innovation speed, development costs, and competitive advantage. Hypotheses are derived from literature on the knowledge-based view of the firm that suggest important differences and key trade-offs between internal and external approaches to learning. We studied 75 new product development projects from ten large, U.S.-based companies in several industries. Results indicate several interesting findings: (1) more external sourcing during the early (i.e., idea generation) stage of the new product development process was related with lower competitive success; (2) more external sourcing during the later (i.e., technological development) stage of new product development process was related with slower innovation speed; and (3) development costs tended to rise with greater reliance on external sources of technology, but these results were not statistically significant.
 Keywords: New product development; Learning; Sourcing strategies