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

  title={Friends and Profits Don't Mix: The Performance Implications of Repeated Partnerships},
  author={S. Holloway and Anne Parmigiani},
  journal={Corporate Finance: Governance},
  • S. Holloway, Anne Parmigiani
  • Published 2014
  • Economics
  • Corporate Finance: Governance
  • 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… CONTINUE READING
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