A substitute for poor institutions? Interorganizational affiliations in the alliance formation process

Oliver Rossmannek and Olaf N. Rank

Management Research Review, 2021, vol. 45, issue 1, 118-135

Abstract: Purpose - This study aims to investigate how the home country institutional development influences the alliance formation process. Design/methodology/approach - A network of strategic alliances between 95 airlines over a 5-year period is analyzed with stochastic actor-oriented models [i.e. Simulation investigation for empirical network analysis (SIENA)]. Robustness analyses use a subsample of these airlines over a period of 10 years. Findings - The results demonstrate that the membership in a firm group and a high share of state ownership are more beneficial for the number of alliances if the firm originates from a country with low institutional development. Practical implications - Firms from less developed countries can use affiliations (e.g. to firm groups or the government) as signals to attract international alliance partners. Social implications - Policymakers from less developed countries should support the development of (local) firm groups to stimulate interorganizational cooperation. Originality/value - Firms form alliances based on two aspects: preferences for alliance partners and attractiveness to potential partners. Prior studies outlined that institutional development affects the preferences of firms for alliance partners. This study demonstrates how the institutional development influences the attractiveness to potential partners.

Keywords: Strategic alliances; Partner selection; Alliance formation process; Institution-based view; Network analysis; State ownership; Firm groups; Strategic management (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:mrrpps:mrr-01-2021-0051

DOI: 10.1108/MRR-01-2021-0051

Access Statistics for this article

Management Research Review is currently edited by Dr Jay Janney and Prof Lerong He

More articles in Management Research Review from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().