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Firm Heterogeneity and Competitive Dynamics in Alliance Formation

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Abstract

We present a theoretical model that attempts to generalize the conditions for alliance formation. This model is based on internal and external conditions of alliance formation: resource heterogeneity and competitive dynamics. We also introduce a game-theoretic model of alliance formation according to the net gains from an alliance and the prevention of losses that could occur from competitors' alliance activities. The model provides a theoretical insight on a paradoxical setting that some firms join an alliance despite little gains while others avoid or delay it despite potentially strong gains from the alliance.

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Source

Academy of Management Review

ISSN:0363-7425

Year:2005

Issue:3

Volume:30

Page:531-554

Powered by JCR@2005

ESI Discipline:ECONOMICS & BUSINESS;

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