Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1002401 | Journal of World Business | 2015 | 13 Pages |
Abstract
Almost no academic papers treat a crucial aspect of alliances – the determinants of the division of alliance value over the partners. Analyzing a sample of cross-border alliances, technology providing partners increase their share of total alliance returns when accepting riskier forms of compensation. Returns to a partner, and the risk they assume, are shown to be correlated through minimum sales or minimum royalty agreement clauses. Firms with stronger technical capabilities gain more from technology alliances. The bargaining power wielded by each party, while negotiating the structure of an alliance, influences each partner's share of overall alliance benefits.
Related Topics
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Authors
Farok J. Contractor, James A. Woodley,