Differential gains between partners in joint ventures: Role of resource appropriation and private benefits

Organization Science

Volumn 21, Issue 1, 2010, Pages 232-248

  Shyam Kumar, M V ^a  

^a RENSSELAER POLYTECHNIC INSTITUTE   (United States)

Author keywords

Event studies; Joint ventures; Private benefits

Indexed keywords

EID: 77953705376     PISSN: 10477039     EISSN: 15265455     Source Type: Journal    
DOI: 10.1287/orsc.1080.0393     Document Type: Article

References (71)

1. Ahuja, G. 2000. Collaboration networks, structural holes, and innovation: A longitudinal study. Admin. Sci. Quart. 45 425-455.
2. Ahuja, G., R. Katila. 2004. Where do resources come from? The role of idiosyncratic situations. Strategic Management J. 25 887-907.
3. Anand, B. N., T. Khanna. 2000. Do firms learn to create value? The case of alliances. Strategic Management J. 21 295-315.
4. Balakrishnan, S., M. P. Koza. 1993. Information asymmetry, adverse selection and joint ventures: Theory and evidence. J. Econom. Behav. Organ. 20 99-117.
5. Barkema, H. G., F. Vermeulen. 1998. International expansion through start-up or acquisition: A learning perspective. Acad. Management J. 41 7-26.
6. Bradley, M., A. Desai, H. E. Kim. 1988. Synergistic gains from corporate acquisitions and their division between stockholders of acquiring and target firms. J. Financial Econom. 21 3-40.
7. Chan, S., J. Kensinger, A. Keown, J. Martin. 1997. Do strategic alliances create value? J. Financial Econom. 46 199-221.
8. Chi, T. 1994. Trading in strategic resources: Necessary conditions, transaction cost problems, and choice of exchange structure. Strategic Management J. 15 271-290.
9. Chung, K. H., S. W. Pruitt. 1994. A simple approximation of Tobin's q. Financial Management 23 70-74.
10. Cohen, W. M., D. A. Levinthal. 1990. Absorptive capacity: A new perspective on learning and innovation. Admin. Sci. Quart. 35 128-152.
11. Das, S., P. K. Sen, S. Sengupta. 1998. Impact of strategic alliances on firm valuation. Acad. Management J. 41 27-41.
12. Das, T. K., B.-S. Teng. 1998. Between trust and control: Developing confidence in partner cooperation in alliances. Acad. Management Rev. 23 491-512.
13. Das, T. K., B.-S. Teng. 2000. Instabilities in strategic alliances: An internal tensions perspective. Organ. Sci. 11 77-101.
14. Dyer, J. H., H. Singh. 1998. The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Acad. Management Rev. 23 660-679.
15. Greene, W. H. 2003. Econometric Analysis, 5th ed. Prentice Hall, Upper Saddle River, NJ.
16. Gulati, R., H. Singh. 1998. The architecture of cooperation: Managing coordination uncertainty and interdependence in strategic alliances. Admin. Sci. Quart. 43 781-814.
17. Gulati, R., L. O. Wang. 2003. Size of the pie and share of the pie: Implications of network embeddedness and business relatedness for value creation and value appropriation in joint ventures. V. Buskens, W. Raub, C. Snijders, eds. The Governance of Relations in Markets and Organizations. Research in the Sociology of Org., Vol. 20. Elsevier Science, Oxford, 209-242.
18. Hamel, G. 1991. Competition for competence and inter partner learning within international strategic alliances. Strategic Management J. 12 83-103.
19. Hennart, J. F. 1982. A Theory of Multinational Enterprise. University of Michigan Press, Ann Arbor, MI.
20. Hennart, J. F. 1988. A transaction costs theory of equity joint ventures. Strategic Management J. 9 361-374.
21. Higgins, M. J., D. Rodriguez. 2006. The outsourcing of R&D through acquisitions in the pharmaceutical industry. J. Financial Econom. 80 351-383.
22. Hoang, H., F. T. Rothaermel. 2005. The effect of general and partner-specific alliance experience on joint R&D project performance. Acad. Management J. 48 332-345.
23. Inkpen, A. C. 2000. A note on the dynamics of learning alliances: Competition, cooperation and relative scope. Strategic Management J. 21 775-779.
24. Inkpen, A. C. 2005. Learning through alliances: General Motors and NUMMI. California Management Rev. 47 114-136.
25. Inkpen, A. C., P. W. Beamish. 1997. Knowledge, bargaining power, and the instability of joint ventures. Acad. Management Rev. 22 177-202.
26. Inkpen, A. C., S. C. Currall. 2004. The coevolution of trust, control and learning in joint ventures. Organ. Sci. 15 586-599.
27. Inkpen, A. C., A. Dinur. 1998. Knowledge management processes and international joint ventures. Organ. Sci. 9 454-468.
28. Johnson, S. A., M. B. Houston. 2000. A reexamination of the motives and gains from joint ventures. J. Financial Quant. Anal. 35 67-85.
29. Kalaignanam, K., V. Shankar, R. Varadarajan. 2007. Asymmetric new product development alliances: Win-win or win-lose partner-ships? Management Sci. 53 357-374.
30. Kale, P., J. Anand. 2006. The decline of emerging economy joint ventures: The case of India. California Management Rev. 48 62-76.
31. Kale, P., H. Singh, H. Perlmutter. 2000. Learning and protection of proprietary assets in strategic alliances: Building relational capital. Strategic Management J. 21 217-237.
32. Kale, P., J. H. Dyer, H. Singh. 2002. Alliance capability, stock market response, and long-term alliance success: The role of the alliance function. Strategic Management J. 23 747-767.
33. Khanna, T. 1998. The scope of alliances. Organ. Sci. 9 340-355.
34. Khanna, T., R. Gulati, N. Nohria. 1998. The dynamics of learning alliances: Competition, cooperation and relative scope. Strategic Management J. 19 193-210.
35. Kogut, B. 1991. Joint ventures and the option to expand and acquire. Management Sci. 37 19-32.
36. Koh, J., N. Venkatraman. 1991. Joint venture formations and stock market reactions: An assessment in the information technology sector. Acad. Management J. 34 869-892.
37. Kumar, M. V. S. 2005. The value from acquiring and divesting a joint venture: A real options approach. Strategic Management J. 26 321-331.
38. Kumar, M. V. S. 2007. Asymmetric gains in joint ventures: Theory and evidence. Finance Res. Lett. 4 19-27.
39. Kumar, M. V. S. 2008. Value creation in joint venture dyads. C. Cooper, S. Finkelstein, eds. Advances in Mergers and Acquisitions, Vol. 7. Emerald, Bingley, UK, 29-50.
40. Kumar, R., K. O. Nti. 1998. Differential learning and interaction in alliance dynamics: A process and outcome discrepancy model. Organ. Sci. 9 356-367.
41. Lane, P. J., M. Lubatkin. 1998. Relative absorptive capacity and interorganizational learning. Strategic Management J. 19 461-477.
42. Lang, L. H. P., R. M. Stulz, R. A. Walking. 1989. Managerial performance, Tobin's q, and the gains from successful tender offers. J. Financial Econom. 24 137-154.
43. Larsson, R., L. Bengtsson, K. Henriksson, J. Sparks. 1998. The interorganizational learning dilemma: Collective knowledge development in strategic alliances. Organ. Sci. 9 285-305.
44. Lavie, D. 2006. The competitive advantage of interconnected firms: An extension of the resource-based view. Acad. Management Rev. 31 639-658.
45. Leonard, D. 1995. Wellsprings of Knowledge. Harvard Business School Press, Boston.
46. Lindenberg, E. B., S. A. Ross. 1981. Tobin's q ratio and industrial organization. J. Bus. 54 1-32.
47. Madhavan, R., J. E. Prescott. 1995. Market value impact of joint ventures: The effect of industry information-processing load. Acad. Management J. 38 900-915.
48. Madhok, A., S. B. Tallman. 1998. Resources, transactions and rents: Managing value through interfirm collaborative relationships. Organ. Sci. 9 326-339.
49. Makhija, M. V., U. Ganesh. 1997. The relationship between control and partner learning in learning-related joint ventures. Organ. Sci. 8 508-527.
50. McConnell, J. J., T. J. Nantell. 1985. Corporate combinations and common stock returns: The case of joint ventures. J. Finance 40 519-536.
51. Merchant, H., D. Schendel. 2000. How do international joint ventures create value? Strategic Management J. 21 723-737.
52. Mjoen, H., S. Tallman. 1997. Control and performance in international joint ventures. Organ. Sci. 8 257-274.
53. Mowery, D. C., J. E. Oxley, B. S. Silverman. 1996. Strategic alliances and interfirm knowledge transfer. Strategic Management J. 17 77-91.
54. Oxley, J. E., R. C. Sampson. 2004. The scope and governance of international R&D alliances. Strategic Management J. 25 723-749.
55. Parkhe, A. 1993. Strategic alliance structuring: A game theoretic and transaction cost examination of interfirm cooperation. Acad. Management J. 36 794-829.
56. Patell, J. N. 1976. Corporate forecasts of earnings per share and stock price behavior: Empirical tests. J. Accounting Res. 14 246-276.
57. Perfect, S. B., K. W. Wiles. 1994. Alternative constructions of Tobin's q: An empirical observation. J. Empirical Fin. 1 313-341.
58. Reich, R., E. Mankin. 1986. Joint ventures with Japan give away our future. Harvard Bus. Rev. 64(2) 78-86.
59. Reuer, J. J., M. Zollo, H. Singh. 2002. Post-formation dynamics in strategic alliances. Strategic Management J. 23 131-151.
60. Rothaermel, F. T., D. L. Deeds. 2004. Exploration and exploitation alliances in biotechnology: A system of new product development. Strategic Management J. 25 201-221.
61. Sampson, R. C. 2005. Experience effects and collaborative returns in R&D alliances. Strategic Management J. 26 1009-1031.
62. Servaes, H. 1991. Tobin's q and the gains from takeovers. J. Finance 46 409-419.
63. Simonin, B. L. 1999. Ambiguity and the process of knowledge transfer in strategic alliances. Strategic Management J. 20 595-623.
64. Teece, D. J. 1982. Towards an economic theory of the multiproduct firm. J. Econom. Behav. Organ. 3 39-63.
65. Villalonga, B. 2004. Intangible resources, Tobin's q, and sustainability performance differences. J. Econom. Behav. Organ. 54 205-230.
66. White, H. 1980. A heteroscedasticity-consistent covariance matrix estimator and direct test for heteroskedasticity. Econometrica 48 817-838.
67. Williamson, O. E. 1975. Markets and Hierarchies: Analysis and Antitrust Implications. Free Press, New York.
68. Woolridge, J. R., C. C. Snow. 1990. Stock market reaction to strategic investment decisions. Strategic Management J. 11 353-363.
69. Zaheer, A., N. Venkatraman. 1995. Relational governance as an interorganizational strategy: An empirical test of the role of trust in economic exchange. Strategic Management J. 16 373-392.
70. Zajac, E., C. Olsen. 1993. From transaction costs to transactional value analysis: Implications for the study of interorganizational strategies. J. Management Stud. 30 131-145.
71. Zollo, M., J. J. Reuer, H. Singh. 2002. Interorganizational routines and performance in strategic alliances. Organ. Sci. 13 701-713.