Accounting Quality and Alliance Contract Provisions

The Accounting Review ◽

10.2308/tar-2017-0623 ◽

2020 ◽

Author(s):

Rui Ge ◽

Yuan Ji ◽

Henock Louis

Keyword(s):

Bargaining Power ◽

Strategic Alliance ◽

Market Value ◽

Accounting Quality ◽

Net Benefit ◽

Bankruptcy Risk ◽

Alliance Partner ◽

Accounting Numbers ◽

Alliance Partners

We show that the number of governance provisions imposed on a firm by a strategic alliance partner decreases with the firm's accounting quality. This effect is weaker when the firm has greater bargaining power and stronger when the alliance project is riskier. Moreover, the net benefit to an alliance partner of imposing an additional governance provision on its counterparty apparently increases when the counterparty accounting quality is low, resulting in an enhancement of the partner's market value and a reduction in its bankruptcy risk. Furthermore, alliance partners adopt fewer provisions based on their counterparties' accounting numbers when the counterparties' accounting quality is poor.

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The international context of cooperation: culture and institutions

Cooperative Strategy ◽

10.1093/oso/9780198814634.003.0021 ◽

2019 ◽

pp. 447-483

Author(s):

John Child ◽

David Faulkner ◽

Stephen Tallman ◽

Linda Hsieh

Keyword(s):

Interest Groups ◽

Strategic Alliance ◽

Joint Venture ◽

Institutional Environment ◽

National Context ◽

International Context ◽

Alliance Partner ◽

Cooperative Strategies ◽

Country Differences ◽

Alliance Partners

Chapter 21 examines ways in which the national context of alliances is relevant to cooperative strategies. It focuses on two salient contextual features. One is national culture. The other is the institutional environment, which particularly refers to governments and interest groups such as NGOs. National context is consequential for alliances in several ways. The context from which international alliance partners originate encourages each of them to internalize a particular set of norms and practices. So, if there is a substantial difference (“distance”) between those contexts, misunderstanding and friction can readily arise between the partners. Additionally, it may be problematic for an alliance partner to build sympathetic and constructive relationships with governmental bodies and interest groups in the host country location of the alliance unit (such as a joint venture), if that location is culturally and institutionally distant from the partner’s domestic environment. The chapter considers “distance” arising from country differences and how it can be highly consequential for the management and ultimate viability of an international strategic alliance.

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Partner selection in market-driven strategic alliances

South African Journal of Business Management ◽

10.4102/sajbm.v28i3.794 ◽

1997 ◽

Vol 28 (3) ◽

pp. 97-104 ◽

Cited By ~ 3

Author(s):

Saul Klein ◽

Chekitan Dev

Keyword(s):

Strategic Alliances ◽

Customer Value ◽

Strategic Alliance ◽

Multiple Choice ◽

Partner Selection ◽

Alliance Partner ◽

One Stop ◽

Market Driven ◽

Alliance Partners

How should one select a strategic alliance partner? An answer to this question is provided by extending the literature on symbiotic marketing and focussing attention on market-driven strategic alliances. Such alliances are defined as long-term inter-firm co-operative relationships that add value for the customer. Value is created by providing the advantages of multiple choice purchase options coupled with the convenience of seamless, one-stop-shopping. This means paying attention to customers and competitors in selecting alliance partners. Market-driven strategic alliances are posited to be more successful when usage and firm complementarity levels are correctly matched with the alliance strategy being pursued.

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The Selection of Strategic Alliance in IC Packaging and Testing Industry with DEA Resampling Comparative Evaluation

Applied Sciences ◽

10.3390/app11010204 ◽

2020 ◽

Vol 11 (1) ◽

pp. 204

Author(s):

Chia-Nan Wang ◽

Yi-Chun Peng ◽

Ming-Hsien Hsueh ◽

Yen-Hui Wang

Keyword(s):

Strategic Alliances ◽

Integrated Circuit ◽

Comparative Evaluation ◽

Strategic Alliance ◽

Evaluation Model ◽

Success Factor ◽

Alliance Partner ◽

Ic Packaging ◽

Public Data ◽

Alliance Partners

Merger and acquisition (M&A) cases and the speed of horizontal integration have increased rapidly in the integrated circuit (IC) packaging and testing industry. Therefore, cooperation with suitable strategic alliance partner is a vital success factor for enterprises. This study proposes a “comparative evaluation” model that searches out appropriate strategic alliances on the basis of the resampling model acquired via data envelopment analysis (DEA). The realistic public data of 20 companies was collected from 2015 to 2019 in the IC packaging and testing industry. The super slacks-based measure model was used to evaluate the performance before alliance in the period from 2015 to 2019. The resampling past–present–future model was used to forecast the performance in 2020–2024. Afterward, a future strategic alliance for comparative evaluation of efficiency was established. The results of the alliance were divided into the groups “ineffective” and “effective”. The results show that 11 companies in the “effective” group achieved both improvements and 8 companies in the “ineffective” group achieved only unilateral improvements. The comparison model describes the efficiency of both sides simultaneously, not only from the perspective of the target but also from the perspective of the partner company. The evaluation model proposed in the study enables enterprises to find suitable alliance partners.

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A Hybrid MCDM Model for Evaluating Strategic Alliance Partners in the Green Biopharmaceutical Industry

Sustainability ◽

10.3390/su11154065 ◽

2019 ◽

Vol 11 (15) ◽

pp. 4065 ◽

Cited By ~ 7

Author(s):

Chang ◽

Liou ◽

Keyword(s):

Strategic Alliances ◽

Strategic Alliance ◽

Selection Process ◽

Rapid Change ◽

Fuzzy Topsis ◽

Small Sample ◽

Biopharmaceutical Industry ◽

Aspiration Level ◽

Alliance Partner ◽

Alliance Partners

Since the rise of strategic alliances which play such an important role in industry today, the biopharmaceutical industry worldwide has entered an era of rapid change and collaborative thinking. The strategic alliance is one of the most important strategies for the green biopharmaceutical industry. Member organizations in these alliances work together to create more advantageous biotechnologies based on environmental protection to achieve mutual benefits. In the past, there have been only a few studies discussing partner evaluations and the selection process for the green biopharmaceutical industry, so the criteria or indicators are still not complete. Therefore, this study proposes a novel multi-criteria decision-making (MCDM) framework for strategic alliance partner evaluation that combines the best-worst method (BWM) and the fuzzy TOPSIS technique based on the concept of aspiration level (called fuzzy TOPSIS-AL) to evaluate the performance and priority rankings of strategic alliance partners. The BWM overcomes the shortcomings of small sample sizes and streamlines the number of conventional pairwise comparisons needed. The fuzzy TOPSIS-AL technique introduces the concept of the aspiration level, thereby leading to more reasonable suggestions for improvement. In addition, data from a multinational green biopharmaceutical company survey are utilized to demonstrate the validity and applicability of the proposed model.

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The three faces of China: Strategic alliance partner selection in three ethnic Chinese economies

Journal of World Business ◽

10.1016/j.jwb.2013.12.010 ◽

2014 ◽

Vol 49 (4) ◽

pp. 572-585 ◽

Cited By ~ 71

Author(s):

David Ahlstrom ◽

Edward Levitas ◽

Michael A. Hitt ◽

M. Tina Dacin ◽

Hong Zhu

Keyword(s):

Strategic Alliance ◽

Partner Selection ◽

Ethnic Chinese ◽

Alliance Partner

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Balancing risk and trust for strategic alliance formation decisions

Journal of Strategy and Management ◽

10.1108/jsma-03-2021-0067 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Zachary A. Collier ◽

Matthew D. Wood ◽

Dale A. Henderson

Keyword(s):

Value Of Information ◽

Strategic Alliance ◽

Selection Process ◽

Subjective Assessment ◽

Quantitative Model ◽

Information Gathering ◽

Content Type ◽

Alliance Partner ◽

Analysis Process ◽

A Value

PurposeTrust entails the assumption of risk by the trustor to the extent that the trustee may act in a manner unaligned with the trustor's interests. Before a strategic alliance is formed, each firm formulates a subjective assessment regarding whether the other firm will behave in a trustworthy manner and not act opportunistically. To inform this partner analysis and selection process, the authors leverage the concept of value of information to quantify the benefit of information gathering activities on the trustworthiness of a potential trustee.Design/methodology/approachIn this paper, the authors develop a decision model that explicitly operationalizes trust as the subjective probability that a trustee will act in a trustworthy manner. The authors integrate the concept of value of information related to information gathering activities, which would inform a trustor about a trustee's trustworthiness.FindingsTrust inherently involves some degree of risk, and the authors find that there is practical value in carrying out information gathering activities to facilitate the partner analysis process. The authors present a list of trustworthiness indicators, along with a scoring sheet, to facilitate learning more about a potential strategic alliance partner.Originality/valueThe need for a quantitative model that can support risk-based strategic alliance decision-making for partner analysis represents a research gap in the literature. The modeling of strategic alliance partner analysis decisions from a value of information (VOI) perspective adds a contribution to the trust literature.

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What do firms from transition economies want from their strategic alliance partners?

Business Horizons ◽

10.1016/j.bushor.2010.11.005 ◽

2011 ◽

Vol 54 (2) ◽

pp. 163-174 ◽

Cited By ~ 36

Author(s):

Michael N. Young ◽

David Ahlstrom ◽

Garry D. Bruton ◽

Yuri Rubanik

Keyword(s):

Transition Economies ◽

Strategic Alliance ◽

Alliance Partners

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Resource and Risk Management in the Strategic Alliance Making Process

Journal of Management ◽

10.1177/014920639802400103 ◽

1998 ◽

Vol 24 (1) ◽

pp. 21-42 ◽

Cited By ~ 88

Author(s):

T. K. Das ◽

Bing-Sheng Teng

Keyword(s):

Strategic Alliances ◽

Strategic Alliance ◽

Interactive Effects ◽

Future Research ◽

Research Directions ◽

Managerial Implications ◽

Future Research Directions ◽

Alliance Partners ◽

And Performance ◽

Relational Risk

Resource-based and risk-based views of strategic alliances have not been adequately reflected in the literature. This paper identifies four types of critical resources that the partners bring to an alliance: financial, technological, physical, and managerial resource. It also suggests two basic types of risk in strategic alliances: relational risk and performance risk. The alliance making process is examined in terms of the interactive effects of resource and risk on the orientations and objectives of the prospective alliance partners. Managerial implications are discussed and future research directions indicated in the form of propositions for empirical testing.

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