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Author:Silverman, B. S.
Baum, J. A. C.
Title:Alliance-Based Competitive Dynamics
Journal:Academy of Management Journal
2002 : AUG, VOL. 45:4, p. 791-806
Index terms:COMPETITOR ANALYSIS
COMPETITION
ALLIANCES
ORGANIZATIONS
Language:eng
Abstract:The authors answer whether rivals' alliances increase or decrease the competitive pressure experienced by a firm. Although the last decade has witnessed an explosion of research concerning the effects of alliances on the firms that participate in them, the literature is virtually silent regarding their competitive effects on rivals. Linking ecological and economic research on organizations, the authors propose that the effects of rivals' horizontal, upstream, and downstream alliances are determined by the degree to which they (1) foreclose a focal firm's alliance opportunities and (2) increase industry carrying capacity. The authors also hypothesize that firms can co- opt rivals' alliances by partnering with well-linked rivals. An analysis of Canadian biotechnology firms supports these predictions.
SCIMA record nr: 243239
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