Alliance Formation in the Midst of Market and Network: Insights From Resource Dependence and Network Perspectives

Jun Xia, Yonggui Wang, Lisa Ya LIN, Haibin Yang*, Sali Li

*Corresponding author for this work

    Research output: Contribution to journalJournal articlepeer-review

    45 Citations (Scopus)

    Abstract

    Alliances are often formed as a response to challenges from both market and social forces. Although the resource dependence logic posits that firms enter into alliances to stabilize resource flows between different markets and also to increase market power in their primary industry, it remains unclear whether the social power of firms, generated from alliance networks, may motivate firms to respond differently to the dependence logic of alliance formation. By incorporating social network theory, we argue that a firm’s social network advantages in the primary industry may serve as critical contingency conditions of the dependence logic. Analyses of firms in the U.S. computer industry from 1994 to 2007 suggest that a firm’s centrality advantage marginally reduces the positive effects of market dependencies on alliance formation, whereas a firm’s brokerage advantage enhances the market dependence effect.

    Original languageEnglish
    Pages (from-to)1899-1925
    Number of pages27
    JournalJournal of Management
    Volume44
    Issue number5
    DOIs
    Publication statusPublished - 1 May 2018

    Scopus Subject Areas

    • Finance
    • Strategy and Management

    User-Defined Keywords

    • alliance formation
    • alliance network
    • brokerage
    • centrality
    • market dependence

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