Do firms with more alliance experience outperform others with less? A three-level sigmoid model and the moderating effects of diversification

Chiung Hui Tseng, Shih Fen S. Chen

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Whether firms with more alliance experience perform better than those with less and whether the alliance strategy interacts with diversification strategy to shape firm performance are two critical but underexplored questions. To address these queries, this study develops a three-level sigmoid framework built upon a marginal analysis that contrasts alliance benefits and alliance costs, and considers the moderation of diversification that often closely works with the alliance in shaping firm performance. Empirical results obtained from firms in two alliance-populated industries support first that the alliance experience-performance relationship is S-shaped in that the linkage is negative to alliance novices, positive to alliance experts, and negative again to alliance overusers; and second, that the shape of this sigmoid curve varies systematically between high- and low-diversified firms.

Original languageEnglish
Pages (from-to)229-243
Number of pages15
JournalCanadian Journal of Administrative Sciences
Volume34
Issue number3
DOIs
Publication statusPublished - 2017 Sep

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diversification
firm
Costs
Industry
experience
performance
Moderating effect
Diversification
Alliances
expert
industry
costs

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Public Administration
  • Marketing
  • Management of Technology and Innovation

Cite this

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