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Author:

Su, Zhongfeng (Su, Zhongfeng.) | Xie, En (Xie, En.) | Li, Yuan (Li, Yuan.)

Indexed by:

Scopus SCOPUS

Abstract:

Strategic alliance can aid firms to build and sustain their competitive advantages. Firms set up strategic alliance mainly for two purposes: resource acquisition and capability learning. Formal control and social control are two widely adopted control mechanisms to secure the effectiveness of strategic alliance. In this study, we construct a model to analyze the choice of control mechanisms based on alliance motivations and the influence of control mechanisms on alliance performance. Based on a survey of 607 Chinese firms, we find that when resource acquisition is the key motivation behind alliance, formal control should be enhanced. Whereas when capability learning is the main purpose of alliance, social control becomes a better choice. Furthermore, this research also finds that the impact of both formal control and social control on alliance performance are nonlinear. Suggestions are provided on how to effectively use control mechanisms to attain the purposes of strategic alliance and on how to use control mechanisms to enhance alliance performance. © Higher Education Press and Springer-Verlag GmbH 2009.

Keyword:

Alliance performance Capability learning Control mechanisms Resource acquisition Strategic alliance

Author Community:

  • [ 1 ] [Li, Yuan]Shanghai Jiao Tong University, Antai College of Economics and Management,Shanghai,China
  • [ 2 ] [Su, Zhongfeng]Xi'an Jiaotong University, School of Management,Xi'an,China

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Source :

Frontiers of Business Research in China

ISSN: 1673-7326

Year: 2009

Issue: 1

Volume: 3

Page: 103-119

Cited Count:

WoS CC Cited Count: 4

SCOPUS Cited Count: 6

ESI Highly Cited Papers on the List: 0 Unfold All

WanFang Cited Count:

Chinese Cited Count:

30 Days PV: 5

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