GULATI, RANJAY; PHD
HARVARD UNIVERSITY, 1993
BUSINESS ADMINISTRATION, MANAGEMENT (0454); SOCIOLOGY, SOCIAL STRUCTURE
AND DEVELOPMENT (0700)
This dissertation examines the factors that influence firm participation in
strategic alliances. It shows that
the network of existing alliances in which most firms find themselves embedded
constitutes a form of
'social capital' and plays a major role in explaining their subsequent alliance
behavior--a crucial factor
overlooked in prior research. Such a socially informed explanation for alliance
behavior does not
preclude the role of economic determinants. I argue that the quest for complementary
assets is indeed
an important determinant of alliance formation. However, I point out that the
interests of important
determinant firms in such arrangements, and the opportunities firms perceive
to realize those interests,
are shaped by the availability of information about the capabilities and reliability
of potential partners. This
information is channeled through the firm's network of prior alliances, which
as a result, also moderates
the alliance decisions of firms. In this study, a firm's social capital encompasses
both its direct and indirect
relationships with other firms. The underlying network of ties examined here
is not some stationary
external network, but is constantly evolving and is closely linked to the actions
themselves--since the
formation of an alliance in a given year modifies the very system of relations
by which it is determined.
Observing the effect of such a dynamic process necessitates a systematic longitudinal
study of firm
actions, and the co-evolution of the social network within which firms are embedded.
Within this
dissertation I empirically assess the relative significance of alternative factors
that explain the alliance
decisions by a large sample of firms over the last decade. Three components
of alliance behavior are
examined separately: (1) Which firms enter into alliances? (2) With whom do
firms form alliances? (3) What
kinds of contracts do firms use to govern their alliances? I examine these issues
using a comprehensive
dataset of the alliance behavior of the largest firms across three sectors between
1970-1989. While each
of the chapters offers an independent empirical analysis, there is some overlap
in the theoretical reviews
offered. Supplementing the quantitative analysis were extensive field interviews
at a number of
organizations. While the results of the field-based study are not formally reported
here, it had an
important input into the quantitative study.
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