Friends and Profits Don't Mix: The Performance Implications of Repeated Partnerships

@article{Holloway2014FriendsAP,
  title={Friends and Profits Don't Mix: The Performance Implications of Repeated Partnerships},
  author={Samuel S. Holloway and Anne Parmigiani},
  journal={ERN: The Partnership Form (Topic)},
  year={2014}
}
Firms use repeated partnerships to gain the benefits of shared experience such as improved coordination, collaboration, and adaptation. However, there are downsides to partnering repeatedly, including vulnerability to opportunistic partners upon whom the firm becomes dependent, muted efficiency incentives, and overlooking better options. This paper unpacks the effects of repeated partnerships by investigating their impact on two distinct types of performance: revenue and profitability. To… 
When do firms enter a repeated partnership? The effect of contract terms and relative partner characteristics
Purpose The purpose of this paper is to understand the mechanisms of partner selection from the transaction cost economics’ viewpoint. This paper reveals that a firm’s choice to initiate a
Ties' repeatedness, partners' social value, and alliance portfolio performance in emerging economy: The moderating roles of firm-government linkages
Abstract Repeatedly collaborating with previous partners or following peers' decisions are two primary strategies employed by emerging economy firms in selecting their alliance partners. As a result,
The Double-Edged Effect of Contracts on Alliance Performance
Despite substantial scholarly interest in the role of contracts in alliances, few studies have analyzed the mechanisms and conditions relevant to their influence on alliance performance. In this
The Effects of Prior Co-Investments on the Performance of VC Syndicates: A Relational Agency Perspective
This study provides a reconciliation of previous findings regarding the effects of prior co-investments among venture capitalists (VCs) and the performance of VC syndicates. We propose a relational
Experiential Learning, Bargaining Power, and Exclusivity in Technology Licensing
Licensing has become the central form of interfirm technology transfer and commercialization in the market for inventions. However, despite the large representation and growth of this business model,
Sequential Alliance Portfolios, Partner Reconfiguration and Firm Performance
This study develops multi-dimensional partner reconfiguration strategies and addresses how they affect firm performance in a series of alliance portfolios by applying the dynamic sustainable
Mobilizing the Temporary Organization: The Governance Roles of Selection and Pricing
Many marketing transactions between buyers and suppliers involve short-term collaborations or so-called temporary organizations. Such organizations have considerable value-creation potential but also
Now You See It, Now You Don't: Explicit Contract Benefits In Extralegal Exchanges
To enhance performance, buying firms often use supplier governance mechanisms, such as explicit contracts, to coordinate efforts. Yet, it is unclear how these governance mechanisms would perform in
Interpartner Differences and Governance Mode Dilemma: The Role of Alliance Scope
It is generally recognized that the governance structure of an alliance, equity versus nonequity, is an important strategic choice. Since an alliance teams up companies that are inevitably divergent
Inertia, uncertainty, and exploratory partner selection
Purpose The purpose of this paper is to examine the following research question in partner selection decisions in business-to-business strategic partnerships/collaborations literature: How do
...
1
2
3
4
5
...

References

SHOWING 1-10 OF 111 REFERENCES
The dynamics of learning alliances: competition, cooperation, and relative scope
We show how the tension between cooperation and competition affects the dynamics of learning alliances. 'Private benefits' and 'common benefits' differ in the incentives that they create for
Post-formation dynamics in strategic alliances
This paper investigates the occurrence and determinants of post-formation governance changes in strategic alliances, including alterations in alliances' contracts, boards or oversight committees, and
The Formation of Buyer–Supplier Relationships: Detailed Contract Drafting and Close Partner Selection
Firms face two strategic decisions when engaging in a new purchase transaction: the decision whether to draft a detailed contract and the decision whether to select a partner with which they share a
Examining the Conditional Limits of Relational Governance: Specialized Assets, Performance Ambiguity, and Long-Standing Ties
Despite recognition of the benefits of relational governance in inter-organizational exchanges, factors that may erode its value have received little examination. We extend the literature by asking
Self-Enforcing Agreements and Relational Contracting: Evidence from California Highway Procurement
We empirically examine the impact of relationships between contractors and subcontractors on firm pricing and entry decisions in the California highway procurement market using data from auctions
The Intra-Alliance Division of Value Created through Collaboration
The differential benefits reaped by individual partners are a major determinant of the impact of strategic alliances on firm performance, and an important (dis)incentive for alliance partners to
Relational Contracts and the Theory of the Firm
Relational contracts—informal agreements sustained by the value of future relationships—are prevalent within and between firms. We develop repeated-game models showing why and how relational
Interorganizational Routines and Performance in Strategic Alliances
TLDR
It is found that only partner-specific experience has a positive impact on alliance performance, and that this effect is stronger in the absence of equity-based governance mechanisms.
Too much love in the neighborhood can hurt: how an excess of intensity and trust in relationships may produce negative effects on firms
This study aims to provide a better understanding of the effect of social networks on innovation through the analysis of territorial agglomerations of firms. Critical voices argue that the same
Choice and performance of governance mechanisms: matching alliance governance to asset type
Formal and relational governance mechanisms are used in strategic alliances to coordinate resources and mitigate the risk of opportunistic behavior. While recent work has shown that these approaches
...
1
2
3
4
5
...