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Author:Garrette, B.
Castaner, X.
Dussauge, P.
Title:Horizontal alliances as an alternative to autonomous production: product expansion mode choice in the worldwide aircraft industry 1945-2000
Journal:Strategic Management Journal
2009 : AUG, VOL. 30:8 p. 885-894
Index terms:alliances
decision making
new products
interorganizational relations
competition
strategic planning
networks
Language:eng
Abstract:The paper examines why firms choose to undertake product expansion through alliances with competitors rather than on their own, and highlights product heterogeneity as a determinant of this make or ally choice. It is argued that firms turn to horizontal alliances in order to implement product expansion projects requiring greater resources than those available to them. A hypothesis is that a firm more likely launches a new product through a horizontal alliance rather than autonomously when the resource requirements of the project are greater, the resources available to the firm are more limited, there is a mismatch between resource endowment and requirement, and the firm's collaborative competence allows it to better cope with the interorganizational concerns raised by collaboration with competitors. An analysis of the sample of 310 new aircraft developments launched between 1945 and 2000 supports the arguments.
SCIMA record nr: 270451
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