Hostname: page-component-cd9895bd7-gbm5v Total loading time: 0 Render date: 2024-12-25T03:45:06.509Z Has data issue: false hasContentIssue false
  • English
  • Français

Environmental uncertainty affects inter-organisational partner selection: The mediating role of cost and strategy in alliance motivations among SMEs

Published online by Cambridge University Press:  30 June 2014

Wei-Long Lee
Wei-Long Lee*
Affiliation:
Department of International Business, College of Management, National Kaohsiung University of Applied Sciences, Kaohsiung,Taiwan, R.O.C.
*
Corresponding author: [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

This paper investigate the degree to which environment uncertainty affects inter-organisational alliance partner selection in small to medium-sized enterprises and blends the resource-based view in a multiple-mediator model in which different dimensions of alliance motivation (cost and strategy) act as mediating mechanisms that transmit the positive effects of environment uncertainty to partner selection criteria. Four hypotheses are developed and then tested on a survey data sample of 108 firms in the Taiwanese steel industry. Our research findings show the mediating effects of alliance motivation cost and strategy and understanding how environment uncertainty impacts alliance motivation (cost and strategy) within small to medium-sized enterprises.

Keywords

environment uncertaintyresource-based viewalliance motivation (cost and strategy)partner selectionSMEs
Type
Research Article
Information
Journal of Management & Organization , Volume 20 , Issue 1 , January 2014 , pp. 38 - 55
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2014 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Anand, B. N., Khanna, T. (2000). Do firms learn to create value? The case of alliances. Strategic Management Journal, 21(3), 295–315.3.0.CO;2-O>CrossRefGoogle Scholar
Auh, S., Menguc, B. (2005). The influence of top management team functional diversity on strategic orientations: The moderating role of environmental turbulence and intern functional coordination. International Journal of Research in Marketing, 22(3), 333–350.Google Scholar
Auster, E. R. (1992). The relationship of industry evolution to patterns of technological linkages, joint ventures, and direct investment between the U.S. and Japan. Management Science, 38, 778–792.Google Scholar
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.Google Scholar
Barney, J. B., Hesterly, W. S. (2008). Strategic management and competitive advantage. Upper Saddle River, NJ: Pearson Education.Google Scholar
Baron, R. M., Kenny, D. A. (1986). The moderator – Mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51, 1173–1182.Google Scholar
Bratkovic, T., Antoncic, B., Ruzzier, M. (2009). Strategic utilization of entrepreneur's resource-based social capital and small firm growth. Journal of Management & Organization, 15, 486–499.Google Scholar
Brouthers, K. D., Brouthers, L. E., Wilkinson, T. J. (1995). Strategic alliances: Choose your partners. Long Range Planning, 28(3), 18–25.Google Scholar
Chen, C. J., Shih, H. A., Yang, S. Y. (2009). The role of intellectual capital in knowledge transfer. IEEE Transaction on Engineering Management, 56(3), 402–410.Google Scholar
Chen, H. M., Chen, T. J. (2003). Governance structures in strategic alliance: Transaction cost versus resource-based perspective. Journal of World Business, 38, 1–14.Google Scholar
Chen, S. H., Lee, H. T., Wu, Y. F. (2008). Applying ANP approach to partner selection for strategic alliance. Management Decision, 46(3), 449–465.CrossRefGoogle Scholar
Chen, S. H., Wang, P. W., Chen, C. M., Lee, H. T. (2010). An analytic hierarchy process approach with linguistic variables for selection of an R&D strategic alliance partner. Computers & Industrial Engineering, 58, 278–287.Google Scholar
Costa, A. C. (2003). Work team trust and effectiveness. Personnel Review, 32, 605–622.Google Scholar
Daniels, J. D. (1971). Recent foreign direct manufacturing investment in the United States: An interview study of the decision process. New York, NY: Praeger Publishers.Google Scholar
De-Jong, B. A., Elfring, T. (2010). How does trust affect the performance of ongoing teams? The mediating role of reflexivity, monitoring, and effort. Academy of Management Journal, 53(3), 535–549.Google Scholar
Dickson, P. H., Weaver, K. M. (1997). Environmental determinants and individual-level moderators of alliance use. Academy of Management Journal, 40(2), 404–425.CrossRefGoogle Scholar
Dickson, P. H., Weaver, K. M. (2011). Institutional readiness and small to medium-sized enterprise alliance formation. Journal of Small Business Management, 49(1), 126–148.Google Scholar
Dickson, P. H., Weaver, K. M., Hoy, F. (2006). Opportunism in the R&D alliances of SMEs: The roles of institutional environment and SME size. Journal of Business Venturing, 21(4), 487–513.Google Scholar
Dodgson, M. (1993). Learning, trust, and technological collaboration. Human Relations, 46(1), 77–95.Google Scholar
Doherty, A. M. (2009). Market and partner selection processes in international retail franchising. Journal of Business Research, 62(5), 528–534.Google Scholar
Dong, L., Glaister, K. W. (2006). Motives and partner selection criteria in international strategic alliances: Perspectives of Chinese firms. International Business Review, 15(6), 577–600.Google Scholar
Duncan, R. B. (1972). Characteristics of organizational environments and perceived environmental uncertainties. Administrative Science Quarterly, 17(3), 313–327.Google Scholar
Eisenhardt, K. M., Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21, 1105–1121.Google Scholar
Evans, N. (2001). Collaborative strategy: An analysis of the challenging world of international airline alliances. Tourism Management, 22, 229–243.Google Scholar
Fang, E. (2011). The effect of strategic alliance knowledge complementarity on new product innovativeness in China. Organization Science, 22(1), 158–172.Google Scholar
Geringer, J. M. (1991). Strategy determinants of partner selection criteria in international joint venture. Journal of International Business Studies, 22(1), 41–62.Google Scholar
Glaister, K. W., Buckley, P. J. (1996). Strategy motives for international alliance formation. Journal of Management Studies, 33(3), 301–332.Google Scholar
Gulati, R. (1998). Alliances and networks. Strategic Management Journal, 19, 293–317.Google Scholar
Hagedoorn, J., Narula, R. (1996). Choosing organizational modes of strategic technology partnering: International and sectorial differences. Journal of International Business Studies, 27(2), 265–284.Google Scholar
Hair, J. F., Anderson, R. E., Tatham, R. L., Black, W. C. (1998). Multivariate data analysis (5th ed.). Upper Saddle River, NJ: Prentice-Hall.Google Scholar
Harrigan, K. R. (1988). Joint ventures and competitive strategy. Strategic Management Journal, 9(2), 141–158.Google Scholar
Heimeriks, K. H., Duysters, G. (2007). Alliance capability as a mediator between experience and alliance performance: An empirical investigation into the alliance capability development process. Journal of Management Studies, 44, 25–49.CrossRefGoogle Scholar
Hitt, M. A., Nixon, R. D., Clifford, P. G., Coyne, K. P. (1999). The development and use of strategic resources. In M. A. Hitt, P. G. Clifford, R. D. Nixon, & K. P. Coyne (Eds.), Dynamic strategic resources: Development, diffusion, and integration (pp. 1–14). Chichestershire: Wiley.Google Scholar
Holmberg, S. R., Cummings, J. L. (2009). Building successful strategic alliances: Strategic process and analytical tool for selecting partner industries and firms. Long Range Planning, 42(2), 164–193.Google Scholar
Kogut, B. (1988). Joint ventures: Theoretical and empirical perspectives. Strategic Management Journal, 9, 319–332.Google Scholar
Krishnan, R., Martin, X. (2006). When does trust matter to alliance performance? Academy of Management Journal, 49(5), 894–917.CrossRefGoogle Scholar
Lambe, C. J., Spekman, R. E. (1997). Alliances, external technology acquisition, and discontinuous technological change. Journal of Product & Innovation Management, 14, 102–116.Google Scholar
Langfred, C. W. (2007). The downside of self-management: A longitudinal study of the effects of conflict on trust, autonomy, and task interdependence in self managing teams. Academy of Management Journal, 50, 885–900.Google Scholar
Lewis, J. (1990). Making strategic alliance work. Research Technology Management, 33(6), 12–15.Google Scholar
Lin, W. T., Liu, Y. S. (2012). Successor characteristics, change in the degree of firm internationalization, and firm performance: The moderating role of environmental uncertainty. Journal of Management and Organization, 18(1), 16–35.Google Scholar
Lukas, B. A., Tan, J. J., Hult, G. T. M. (2001). Strategic fit in transitional economies: The case of China's electronics industry. Journal of Management, 27, 409–429.Google Scholar
MacKinnon, D. P. (2000). Contrasts in multiple mediator models. In J. Rose, L. Chassin, C. C. Presson, & S. J. Sherman (Eds.), Multivariate applications in substance use research (pp. 141–160). Mahwah, NJ: Erlbaum.Google Scholar
McFadyen, M. A., Cannella, A. A. (2004). Social capital and knowledge creation: Diminishing returns of the number and strength of exchange relationships. Academy of Management Journal, 47(5), 735–746.Google Scholar
McFadyen, M. A., Semadeni, M., Cannella, A. A. (2009). Value of strong ties to disconnected others: Examining knowledge creation in biomedicine. Organization Science, 20(3), 552–564.Google Scholar
Miller, K. D. (1992). A framework for integrated risk management in international business. Journal of International Business Studies, 21, 311–331.Google Scholar
Murray, J. Y., Kotabe, M. (2005). Performance implications of strategic fit between alliance attributes and alliance forms. Journal of Business Research, 58, 1525–1533.Google Scholar
Nakos, G., Brouthers, K. D. (2008). International alliance commitment and performance of small and medium-size enterprises: The mediating role of process control. Journal of International Management, 14, 124–137.Google Scholar
Parkhe, A. (1993). Partner nationality and the structure – Performance relationship in strategic alliances. Organization Science, 4(2), 301–324.CrossRefGoogle Scholar
Perry-Smith, J. E. (2006). Social creativity: The role of social relationships in facilitating individual creativity. Academy of Management Review, 49(1), 85–101.Google Scholar
Preacher, K. J., Hayes, A. F. (2004). SPSS and SAS procedures for estimating indirect effects in simple mediation models. Behavior Research Methods, Instruments, & Computers, 36, 717–731.Google Scholar
Podolny, J. M., Phillips, D. J. (1996). The dynamics of organizational status. Industry Corporate Change, 5, 453–471.Google Scholar
Rao, A., Schmidt, S. M. (1998). A behavioral perspective on negotiating international alliances. Journal of International Business Studies, 29(4), 665–694.Google Scholar
Robertson, T. S., Gatignon, H. (1998). Technology development mode: A transaction cost conceptualization. Strategic Management Journal, 19, 515–531.Google Scholar
Sakakibara, M. (1997). Heterogeneity of firm capabilities and cooperative research and development: An empirical examination of motives. Strategic Management Journal, 18, 143–164.Google Scholar
Sarkar, M., Echambadi, R., Harrison, J. S. (2001). Research note alliance entrepreneurship and firm market performance. Strategic Management Journal, 22, 701–711.Google Scholar
Shah, R. H., Swaminathan, V. (2008). Factors influencing partner selection in strategic alliances: The moderating role of alliance context. Strategic Management Journal, 29(5), 471–494.Google Scholar
Sobel, M. E. (1982). Asymptotic confidence intervals for indirect effects in structural equation models. In S. Leinhardt (Ed.), Sociological methodology 1982 (pp. 290–312). Washington, DC: American Sociological Association.Google Scholar
Solesvik, M. Z., Encheva, S. (2010). Partner selection for interfirm collaboration in ship design. Industrial Management & Data Systems, 110(5), 701–717.Google Scholar
Solesvik, M. Z., Westhead, P. (2010). Partner selection for strategic alliances: Case study insights from the maritime industry. Industrial Management & Data Systems, 110(6), 841–860.Google Scholar
Teece, D. J. (1986). Profiting from technology innovation: Implications for integration, collaboration, licensing and public policy. Research Policy, 15(6), 285–305.CrossRefGoogle Scholar
Tripsas, M., Schrader, S., Sobrero, M. (1995). Discouraging opportunistic behavior in collaborative R&D: A new role for government. Research Policy, 24, 367–389.Google Scholar
Ulbrich, S., Troitzsch, H., Anker, F., Plüss, A., Huber, C. (2011). How teams in networked organizations develop collaborative capability: Processes, critical incidents and success factors. Production Planning & Control, 1, 1–13.Google Scholar
Vassolo, R. S., Anand, J., Folta, T. B. (2004). Non-additivity in portfolios of exploration activities: A real options-based analysis of equity alliances in biotechnology. Strategic Management Journal, 25(11), 1045–1061.Google Scholar
Walters, B. A., Peters, S., Dess, G. G. (1994). Strategic alliances and joint ventures: making them work. Business Horizons, July/August 5–10.Google Scholar
Wang, Y., Krakover, S. (2008). Destination marketing: Competition, cooperation or coopetition? International Journal of Contemporary Hospitality Management, 20(2), 126–141.Google Scholar
Williamson, O. E. (1975). Markets and hierarchies: Analysis and antitrust implications. New York, NY: Free Press.Google Scholar
Williamson, O. E. (1985). The economic institutions of capitalism. New York, NY: Free Press.Google Scholar
Wong, P., Ellis, P. D. (2002). Social Ties and partner identification in Sino-Hong Kong international joint ventures. Journal of International Business Studies, 33(2), 267–289.Google Scholar
Wu, W. Y., Shih, H. A., Chan, H. C. (2009). The analytic network process for partner selection criteria in strategic alliances. Expert Systems with Applications, 36(3), 4646–4653.Google Scholar
Yasuda, H. (2005). Formation of strategic alliances in high-technology industries: Comparative study of the resource-based theory and the transaction-cost theory. Technovation, 25, 763–770.CrossRefGoogle Scholar
Zoilo, M., Winter, S. G. (2002). Deliberate learning and the evolution of dynamic capabilities. Organization Science, 13(3), 339–351.Google Scholar
Zuckerman, H. S., D'Aunno, T. A. (1990). Hospital alliances: Cooperative strategy in a competitive environment. Health Care Management Review, 15(2), 21–30.Google Scholar