Do technology alliances create more value than marketing alliances?

Ram Subramanian, Vijay Gondhalekar and C.R. Narayanaswamy

International Journal of Business Excellence, 2011, vol. 4, issue 2, 178-190

Abstract: Strategic alliances play a prominent role in firm competitiveness. While the number of strategic alliances formed increases year after year, the research evidence on alliance success is conflicting. This study compares marketing and technology alliances during the technology era, 1996-2003. The sample size for the two groups is 91 and 109, respectively. On the basis of the Fama-French three-factor model, we find that the stock market considers the announcement of marketing and technology alliances to be a zero NPV project (whether alliance partners are considered individually or not). Also, we find that between alliance partners the larger firms exhibit better bargaining in technology alliances than in marketing alliances.

Keywords: strategic alliances; marketing alliances; technology alliances; event studies; value creation; firm competitiveness; alliance success; three-factor models; Eugene Fama; Kenneth French; stock markets; net present value; NPV; alliance partners; bargaining; business excellence. (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbexc:v:4:y:2011:i:2:p:178-190

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