Internal and external resource endowments in alliances : the impact on knowledge flows and competitive actions

Giura, Ileana Simona
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Ravichandran, T.
Lu, Yingda
Simons, Kenneth L.
Kantor, Shawn Everett
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Firms extend access to resources by partnering with other firms. Thus, in the second essay, we study how firms leverage their partners' resources in order to compete. We examine the impact of firm's partners' knowledge portfolio - stock and diversity - on volume, complexity and heterogeneity of actions. Further we argue that firms can leverage their partners' resources in different ways depending on their network position. We find that partners' knowledge has a positive effect on competitive action volume and complexity. We do not find partners' knowledge to impact heterogeneity of actions. Further, we find that central firms due to experience at managing ties are better able to use their partners' resources and thus have more opportunities that turn into a higher volume of complex and heterogeneous actions. Lastly, we have found that the potential of exposure to high and diverse stocks of knowledge is not realized if the firm's partners are highly unconnected (access to structural holes) due to reduced trust among the partners and thus less information and knowledge flows though the ego network.
August 2014
School of Management
Lally School of Management
Rensselaer Polytechnic Institute, Troy, NY
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