A Two-Sided Matching Approach for Partner Selection and Assessing Complementarities in Partners’ Attributes in Inter-Firm Alliances

Denisa Mindruta () and Mahka Moeen ()

No 1068, HEC Research Papers Series from HEC Paris

Abstract: Strategic alliances are undertaken to create value through complementarities of resources and capabilities of the partner firms. The authors develop a matching framework to study strategic alliances, taking a market perspective that explicitly incorporates key features of transactions in strategic alliances: two sided decision making in voluntary collaboration; quest for complementarities between indivisible and heterogeneous partner attributes; and competition on each side for partners on the other side. They assess the relative performance of matching models and binary choice models when estimating parameters within simulations based on a known functional relationship. Within the context of research alliances in the bio-pharmaceutical industry, we hypothesize and find support using the matching model framework for complementarity in partner size, and in upstream research capabilities.

Keywords: alliances; two-sided matching; maximum score estimator; bio-pharmaceutical industry; complementarity (search for similar items in EconPapers)
Pages: 52 pages
Date: 2014-11-22
New Economics Papers: this item is included in nep-bec, nep-com and nep-cse
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ebg:heccah:1068

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