Essays on alliance portfolio reconfiguration following a technological discontinuity

ESSAYS ON ALLIANCE PORTFOLIO RECONFIGURATION FOLLOWING A TECHNOLOGICAL DISCONTINUITY NAVID ASGARI (B.Eng. (AU Tehran), MBA(MMU)) A THESIS SUBMITTED FOR THE DEGREE OF DOCTOR OF PHILOSOPHY (PH.D.) DEPARTMENT OF MANAGEMENT AND ORGANIZATION NATIONAL UNIVERSITY OF SINGAPORE 2014     DE ECLARATIION I hereby deeclare that this t thesis iss my originaal work and d it has beenn written by y me in its entirety. I have h duly accknowledgeed all the so ources of infformation which w have been used in i the thesiss. This theesis has also o not been ssubmitted fo or any degreee in any unniversity previously. -------------------------------------  N Navid Asgaari 111 March, 20 014   ii    To my parents, who made many sacrifices for my success and happiness. iii   ACKNOWLEDGEMENTS   I must confess that I never imagined my Ph.D. journey to be so rugged and, at the same time, so gratifying. It was rugged because of many academic and non-academic obstacles I had to overcome and many sacrifices I had to make. It was gratifying for two reasons: First, I enjoyed my field of study. Second, I met many wonderful individuals whose friendships I will cherish for long. To acknowledge these individuals is to tell the story of my journey. The journey started when I met a man of exceptional qualities, Professor Kulwant Singh, who later became my PhD advisor. While an accomplished academic and educator, his modesty and compassion struck me the most. Since then, my every encounter with him confirmed that observation. He is not just an advisor to me, but also a role model of what it takes to be an academic and a responsible educator. His high standard for research, unwavering academic integrity, and ability to explain very intricate ideas in simple terms are accompanied by a pleasant character. I cannot put into words how much he cared about my success. Professor Singh patiently listened to my very underdeveloped ideas, never scorned them, but gently helped me refine them into viable research questions. Every meeting with him was encouraging and constructive. He cared about every detail, read the manuscripts many times and even walked me through the very basics of academic writing, research development, empirical examination, and manuscript crafting. He did all this with utmost patience. At some point, the journey became very rough. That was when another wonderful individual joined Professor Singh to guide me through this journey. iv   Professor Albert Chu-Ying Teo became my co-advisor and made my journey a lot easier. He taught me the value of attention to the details in academic work. Professor Teo is more than a researcher and an academic. He is also a humanitarian and a forerunner of community development, social entrepreneurship, and altruistic initiatives in Singapore. Professor Teo lives the values long forgotten by the modern world. This journey became even more gratifying when another exceptional academic accepted my request to be my co-advisor. Having trained Kulwant Singh and many other noble researchers, Professor Will Mitchell kindly accepted me as his student. This was the pinnacle of this journey and made every obstacle worth it. He was instrumental in every step of my thesis development. Working with Professor Mitchell influenced my way of looking at academic research and formulation of research ideas. He spent long hours listening to my ideas, commenting on the empirical models, and providing me with invaluable insight into the global health-care industry. His support helped me believe in the potential of my research. But, perhaps, the most valuable academic lesson I learnt from him was how important it is to remain focused in research. His influence, however, goes beyond research. He has set a standard for morale, compassion and modesty that not many can live up to. Throughout this journey, with all its ups and downs, I was fortunate to have a mentor and a good friend, Professor Ishtiaq Pasha Mahmood. Pasha is known for his quality research, intellectualism, and being a larger-than-life character. I enjoyed our thought-provoking conversations whose topics ranged from strategic management, economics, philosophy of science, history, v   sociology, to food, fashion and life-style. If I needed to talk to someone, he would kindly listen to me venting and sharing my concerns over a nice meal or snack. In many ways, I am indebted to Professor Daniel McAllister. He has been supporting me throughout this journey with his invaluable advice. Also, I should acknowledge Professor Michael Frese’s encouragement and guidance. Likewise, Professor Richard Arvey, the Head of the Department of Management and Organization, created a conducive and friendly environment for research. I should also acknowledge the moral support I received from my classmates and friends. Particularly, Poornima’s encouragement and help made a difference during my PhD. Working with her on several research ideas helped me develop important research skills. Zhiying Jiang’s (Masia) friendship and help made this long and uneven journey easier. Hossein with his fine taste and passion for everything la dolce vita was certainly necessary for a better PhD experience. I should also acknowledge the friendship of Dr. Avvari Mohan. Since I left my homeland and settled in South East Asia, he and his lovely family helped me feel at home. I was fortunate to be in the NUS Business School while Ms. Lim Cheow Loo was in charge of the school’s PhD program. Cheow Loo epitomizes Singaporean patience, diligence, and excellence. Under her leadership the PhD students can concentrate on their studies while she resolves very complicated matters without letting them feel any pressure. Similarly, Professor Trichy Krishnan has been very supportive; and, helped me accomplish this journey. vi   The dataset of this thesis required an extensive search process that became possible through guidance I received from Ms. Wong Kah Wei at the Hon Sui Sen Memorial Library. Her enthusiasm and commitment have always been motivating to me. I am also grateful to the administrative staff at the NUS Business School for their excellent service and compassion: Ms. Teo Woo Kim, Ms. Wendy Lim, Ms. Latifah Bte Wagiman, Ms. Jenny Chng, and many others who never refused to help. I also benefited from interaction with and comments and feedbacks from several faculty members at the NUS Business School: Professor David Reeb, Professor Vivek Tandon, Professor Nitin Pangarkar, Professor David Lehman, Professor Chung Chi-Nien, Professor Srini Sankaraguruswamy, and Professor Glenn Carroll during his visits to the NUS Business School. This thesis was partially supported by the PhD Dissertation Funding Award of the Strategy Research Foundation (SRF) at the Strategic Management Society. I am grateful to Professor Jeffrey Reuer, Professor Catherine Maritan, and Professor Tomi Laamanen for trusting the potential of my research. My Sister and my brother-in-law were my source of comfort. I doubt if I could accomplish my PhD without their unconditional love and support. My brother kept our house cheerful and took care of my parents so that I can study with peace of mind. His growth into a successful, young man was a source of joy to our family. And last, but not the least; my parents made many sacrifices for my success and happiness. They have dedicated their entire life to helping me vii   realize my dreams. My mother, the beating heart of our family, has always been my best advisor and teacher. My father, the beacon of knowledge and wisdom, inculcated in me the zeal for knowledge and research. For their love and encouragement, I dedicate this thesis to my parents. viii   TABLE OF CONTENTS ACKNOWLEDGEMENTS . iv SUMMARY . xi LIST OF TABLES xv LIST OF FIGURES . xv CHAPTER . INTRODUCTION . Essay . Motivation and Contributions . Findings . Essay . 10 Motivation and Contributions . 12 Findings . 14 CHAPTER . 16 ESSAY 1: ALLIANCE PORTFOLIO RECONFIGURATION FOLLOWING A TECHNOLOGICAL DISCONTINUITY 16 INTRODUCTION 16 THEORY AND HYPOTHESES 19 Alliance Portfolios 19 Technological Discontinuities 21 Alliances for Challenged Resources 23 Alliances for Reinforced Resources 25 Alliances for New Resources . 27 Interaction of Alliances 29 METHODS 30 Empirical Setting 30 Data . 33 Measurement 35 Analyses . 42 RESULTS 44 Robustness Tests . 64 ix   DISCUSSION AND CONCLUSIONS . 65 CHAPTER . 73 ESSAY 2: STRUCTURAL INFLUENCES ON ALLIANCE PORTFOLIO RECONFIGURATION FOLLOWING A TECHNOLOGICAL DISCONTINUITY 73 INTRODUCTION 73 THEORY AND HYPOTHESES 77 Interdependence of the Focal Firm and its Alliance Portfolio 79 Technological Diversity of the Alliance Portfolio 84 Interaction of Technological Diversity and Interdependence . 86 METHODS 87 Empirical Setting 87 Data . 89 Measurement 90 Analyses . 104 RESULTS 105 Robustness Test 109 DISCUSSION AND CONCLUSIONS . 110 CHAPTER . 115 DICUSSION AND CONCLUSION 115 CONCLUSION 115 CONTRIBUTIONS 116 LIMITATIONS AND FUTURE DIRECTIONS . 120 APPENDIX 123 REFERENCES . 127  x   REFERENCES Adner, R., R. 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Management Science 53(10) 1618-1633. 142   [...]... alliances to also disband more alliances following a discontinuity Thus, a technological discontinuity that alters the value of firms’ resources and of their allies’ resources will lead to increased formation and disbandment of alliances as part of alliance portfolio reconfiguration In sum, I show that technological discontinuities are important drivers of alliance portfolio reconfiguration Motivation... alliances and by identifying an exogenous technological discontinuity for careful examination of the reconfiguration process following an external shock xiii   In sum, the evaluation of alliance portfolio reconfiguration after a technological discontinuity demonstrates that such reconfiguration is influenced by a combination of external stimuli and internal portfolio characteristics, and helps integrate... lead to increased formation and disbandment of alliances as part of alliance portfolio reconfiguration In sum, I show that technological discontinuities are important drivers of alliance portfolio reconfiguration Research on alliances suggests that their evolution is primarily driven by path-dependency (Dwyer et al 1987, Jap and Anderson 2007, Lavie and 17   Singh 2012, Rosenkopf and Padula 2008, Uzzi... formation and disbandment of alliance ties are not independent of the current structure of alliance portfolios As such, the study of alliance portfolio reconfiguration is incomplete without taking into account the characteristics of the portfolio that may condition reconfiguration Therefore, the second essay sheds light on the factors that shape reconfiguration of alliance portfolios following technological. .. than from studying them as independent ties For example, the research on alliance survival can benefit from the insight into alliance portfolios The research on alliance survival and termination (e.g., Lunnan and Haugland 2008) has studied alliances as independent ties Overlooking the fact that firms increasingly maintain their alliances as portfolios (Parise and Casher 2003) and that portfolios have... and harder for firms to disband current alliances and form new alliances in more interdependent portfolios, impeding alliance portfolio reconfiguration following a technological discontinuity The results also support the idea that the technological diversity of an alliance portfolio facilitates reconfiguration Firms that are engaged in technologically diverse portfolios have greater exposure to broader... this call I pose two interrelated research questions and answer them in two essays The first essay investigates how a technological discontinuity leads firms to reconfigure their alliance portfolios by forming new alliances and disbanding current alliances The second essay examines how structural properties of alliance portfolios shape their reconfiguration following the discontinuity Reconfiguration. .. markets and industries, and thus are likely to have greater capabilities in organizing and adapting to changes in their environment (Lavie and Rosenkopf 2006, Lavie et al 2010, March 1991) These capabilities may be transferable to alliance portfolio reconfiguration, allowing these firms to undertake greater reconfiguration following a technological discontinuity The interaction of interdependence and... varying patterns of reconfiguration The focus on the structural characteristics of an alliance portfolio strengthens the link between the alliance portfolio and organizational design literatures, and demonstrates the value of extending organizational design theory to alliance portfolios The thesis also makes two empirical contributions by utilizing a rigorous method of establishing termination dates of alliances... portfolios (Lavie 2007, Lavie and Singh 2012, Wassmer 2010) to evaluate the relationship between technological discontinuities, firm resources and alliance portfolio reconfiguration The impact of a technological discontinuity on firms depends on the nature of the discontinuity and on firms’ resources A technological discontinuity is a “technical advance so significant that no increase in scale, efficiency, . evaluation of alliance portfolio reconfiguration after a technological discontinuity demonstrates that such reconfiguration is influenced by a combination of external stimuli and internal portfolio. disbandment of alliances as part of alliance portfolio reconfiguration. In sum, I show that technological discontinuities are important drivers of alliance portfolio reconfiguration. Motivation. Motivation and Contributions 12 Findings 14 CHAPTER 2 16 ESSAY 1: ALLIANCE PORTFOLIO RECONFIGURATION FOLLOWING A TECHNOLOGICAL DISCONTINUITY 16 INTRODUCTION 16 THEORY AND HYPOTHESES 19 Alliance