The Impact of Collaborative Agreement on Firms' Performances: The case of the IT industry in the 90's

Olivier Mortehan () and Bruno van Pottelsberghe de la Potterie
Authors registered in the RePEc Author Service: Bruno van Pottelsberghe de la Potterie ()

No 03-14, IIR Working Paper from Institute of Innovation Research, Hitotsubashi University

Abstract: In the I.T. industry, which was confronted to a major transition phase during the 90's, partnerships became a strategic component of the new "divided technical leadership" which emerged from the industry vertical disintegration. This paper attempts to evaluate the impact of 1676 partnerships on the financial performance (revenue and profit) and innovative efforts (R&D intensity) of 14 large firms and 725 of their partners. On average, there is a positive impact of collaborative agreements on large incumbents and their partners' financial performance (revenue and income). These results vary according to the type, form and content of the agreement and according to the partner's field of activity. Incumbents get the most benefit from broad scope informal alliances while smaller and more hierarchical forms of partnerships (consortia, joint-ventures) do profit to their partners. For large incumbents, collaborative agreement are more effective when performed with partners from the services industry than with partners from the I.T. industry. The role of partnerships in such an industry transformation phase with heavy cost pressure is confirmed by the negative impact of collaborative agreements on internal R&D spending.

Keywords: collaborative agreement; R&D intensity; financial performance; alliance; partnership; Information Technology industry (search for similar items in EconPapers)
JEL-codes: C2 L11 L14 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2003-08
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/16000/070iirWP03-14.pdf

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:hit:iirwps:03-14

Access Statistics for this paper

More papers in IIR Working Paper from Institute of Innovation Research, Hitotsubashi University Contact information at EDIRC.
Bibliographic data for series maintained by Digital Resources Section, Hitotsubashi University Library ().