Reexamining the tradeoff between value creation and value appropriation: The role of internal organizational resources vs. External strategic international alliances

Annette P. Tower, Kelly Hewett and Alok Saboo

Journal of Business Research, 2021, vol. 123, issue C, 302-312

Abstract: Firms can achieve sales growth by strategically emphasizing value creation or value appropriation activities. Surprisingly little is known about the impact of pursing these activities with internal resources as well as via strategic international alliances. Using a data set of 1469 strategic international alliances over a 20-year period, the authors examine how emphasizing value creation versus appropriation – and implementing each internally versus externally – impacts sales growth. Using a novel construct, strategic international alliance emphasis, that captures the tradeoff between value creation and appropriation via international alliances, the authors find that an external focus on value creation increases sales growth. This effect can be further enhanced when firms focus simultaneously on value appropriation internally. In addition, the ratio of international alliances and percentage of joint ventures in firms' alliance portfolios impacts the effect of external value creation on sales growth. These results highlight the importance of coordinating strategic emphases internally and externally.

Keywords: Value creation; Value appropriation; Strategic international alliances; Sales growth; International alliance portfolio; Strategic international alliance emphasis (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:123:y:2021:i:c:p:302-312

DOI: 10.1016/j.jbusres.2020.09.048

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