Strategic Alliance and Acquisition Performance: Impact of Interfirm Synergies and Motives in the Bio-Pharmaceutical Industry

2021 ◽  
Vol 26 (4) ◽  
Author(s):  
Thani Jambulingam ◽  
Todd Saxton
Keyword(s):  
Pharmaceutical Industry ◽  
Strategic Alliance ◽  
Resource Dependence ◽  
Positive Impact ◽  
Learning Theories ◽  
Performance Impact ◽  
Strategic Fit ◽  
Transaction Structure ◽  
Initial Survey ◽  
International Transactions

This study draws on transaction cost, resource dependence, and organizational learning theories to posit relationships between transaction performance and transaction structure (alliances versus acquisitions), interfirm synergies, and motives. The study involves analysis of 66 international and intra­national alliances and acquisitions that were undertaken in the pharmaceutical industry. An initial survey was administered to firms involved in these transactions to gather information regarding motives, transaction structure, and interorganizational synergies. A second survey was administered two years after the transaction to gather information on transaction performance. Findings support the importance of transaction structure and strategic synergies between firms. Specifically, transaction structure and high levels of strategic fit between the firms had a positive impact on performance. There is also some evidence that synergies must be linked to the motives driving the transaction. The study yields meaningful results regarding factors leading to success of transactions (alliances and  acquisitions)  in a  longitudinal  study  of  intranational and international transactions in the biopharmaceutical industry.

scholarly journals Factors Influencing Collaborative Innovation Project Performance: The Case of China

2021 ◽  
Vol 13 (13) ◽  
pp. 7380
Author(s):  
Hong Liu ◽  
Zhihua Liu ◽  
Yongzeng Lai ◽  
Lin Li
Keyword(s):  
Organizational Climate ◽  
Structural Equation ◽  
Resource Dependence ◽  
Positive Impact ◽  
Project Performance ◽  
Benefit Distribution ◽  
Collaborative Innovation ◽  
Innovation Project ◽  
The Incentive Mechanism ◽  
The Impact

This study conducted a comprehensive and systematic investigation of the influencing factors for collaborative innovation project (CIP) performance. First, a theoretical framework model was constructed, and then a structural equation model (SEM) was used for an empirical analysis of 199 CIPs. Furthermore, we divided the factors into tangible and intangible categories and considered the impact mechanism of nine typical factors on project performance. The results are as follows: (1) All nine factors had a significant positive impact on the performance of collaborative innovation projects, among which benefit distribution and collaborative innovation capability were the most important. (2) Benefit distribution, resource dependence, organizational climate, and collaborative innovation affected project performance, both directly and indirectly. (3) Effective communication, leadership support, knowledge sharing, and collaborative innovation ability only had a direct influence, while the incentive mechanism played only an indirect role. Finally, three suggestions were put forward on the idea of high-quality, sustainable development.

The effect of supplier globalization on firm innovation: a resource dependence theory perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yibo Wang ◽  
Bai Liu
Keyword(s):  
Resource Dependence ◽  
Positive Impact ◽  
Market Competition ◽  
Effective Means ◽  
Resource Dependence Theory ◽  
Institutional Distance ◽  
Foreign Firms ◽  
Firm Innovation ◽  
Content Type ◽  
Dependence Theory

PurposeEither buying or making is predicted by the existing literature for firms to reduce dependence. However, firms in the rapid globalization are found to adopt a pattern of buying and making. Specially, they critically rely on foreign firms for needed materials and goods, and invest in innovation against the uncertainty of potential supply disruptions simultaneously. Therefore, this paper seeks to investigate how the depth and width of supplier globalization shape firm innovation together. Moreover, the moderating effects of institutional distance and market competition are also examined in the paper.Design/methodology/approachGrounded on the resource dependence theory, this paper develops a theoretical framework and tests the proposed hypotheses by Poisson model using secondary data from 502 Chinese listed firms with foreign suppliers.FindingsThe depth of supplier globalization has a positive impact on firm innovation, while the width of supplier globalization weakens firm innovation. The depth and width of supplier globalization further interact negatively to influence firm innovation. Moreover, this relationship is enhanced when firms establish relationships with foreign firms with greater institutional distance and is weakened when firms face fiercer product competition.Originality/valueThe authors contribute to the literature by evidencing that the existence of foreign suppliers results in firms' enhancement of innovation to secure their operations and showing that diversifying the country origins of foreign suppliers is an effective means to reduce firms' uncertainty about supply disruption. We also advance the understanding regarding the contextual factors in which firms are more likely or less likely to manage the uncertainty about supplier globalization.

Internet usage, user satisfaction, task-technology fit, and performance impact among public sector employees in Yemen

2017 ◽  
Vol 34 (3) ◽  
pp. 210-241 ◽  
Author(s):  
Osama Isaac ◽  
Zaini Abdullah ◽  
T. Ramayah ◽  
Ahmed M. Mutahar
Keyword(s):  
Factor Analysis ◽  
User Satisfaction ◽  
Positive Impact ◽  
Internet Usage ◽  
Performance Impact ◽  
Content Type ◽  
Actual Usage ◽  
Proposed Model ◽  
Task Technology Fit ◽  
And Performance

Purpose The internet technology becomes an essential tool for individuals, organizations, and nations for growth and prosperity. The purpose of this paper is to integrate the DeLone and McLean IS success model with task-technology fit (TTF) to explain the performance impact of Yemeni Government employees. Design/methodology/approach Questionnaire survey method was used to collect primary data from 530 internet users among employees within all 30 government ministries-institutions in Yemen. The four constructs in the proposed model were measured using existing scales. The data analysis starts with initial exploratory factor analysis, then confirmatory factor analysis and lastly structural equation modeling via AMOS. Findings The results showed that the proposed integrated model fits the data well. Findings of the multivariate analysis demonstrate four main results. First, actual usage has a strong positive impact on user satisfaction, TTF, and performance impact. Second, user satisfaction has a great influence on performance impact. Third, TTF has a strong positive impact on user satisfaction and performance impact. Fourth, both user satisfaction and TTF mediate the relationship between the actual usage and performance impact. Research limitations/implications The public sector in Yemen contains three parts: Yemeni prime minister, Yemeni ministries, and government agencies. This study focuses only on the Yemeni employees among Yemeni ministries; hence the results are not necessarily generalizable. Moreover, there are biases when the researcher measures the actual Internet usage variable through asking a participant about their opinion regarding their usage because these are generally found to differ from the true score of system usage. Practical implications The findings should be very useful for the Yemeni Government in presenting the importance of information technology effects on individual efficiency and effectiveness. Therefore, the information from these findings should encourage and support the formation of future policy at the organizational level and national level. If the government utilizes these findings by setting up strategies to promote internet usage, this may, in turn, improve professional practice, personal development, and quality of working life. Originality/value This paper adds to the existing literature of information systems by combining actual technology usage, user satisfaction, and TTF to predict performance impact within the organizations. Furthermore, this study proposed a second-order model of performance impact in order to increase the power of explaining the output by the model, which contains four first-order constructs: process, knowledge acquisition, communication quality, and decision quality. The predictive power of the proposed model has a higher ability to explain and predict performance impact compared to those obtained from some of the previous studies.

Market Orientation, Alliance Governance, and Innovation

2019 ◽  
Vol 27 (1) ◽  
pp. 1-18
Author(s):  
Yu Li ◽  
Yao Chen ◽  
Yuan Li ◽  
Christopher P. Holland
Keyword(s):  
Market Orientation ◽  
Resource Dependence ◽  
Customer Orientation ◽  
Positive Impact ◽  
Radical Innovation ◽  
Resource Dependence Theory ◽  
Incremental Innovation ◽  
Contractual Governance ◽  
Alliance Governance ◽  
The Relationship

Relying on resource dependence theory and transaction cost economics, this article discusses the important role of alliance governance as a mediating mechanism in the relationship between market orientation and innovation, and compares the differences between the influences of different dimensions. The article aims to reveal the influence mechanism of different types of alliance governance on the relationship between market orientation and innovation. Based on a sample of 122 Chinese manufacturing enterprises, the article finds that: (1) contractual governance will increase when customer orientation and competitor orientation become higher, and contractual governance will affect radical innovation in a U-shaped way; (2) trust governance will increase when inter-functional coordination become higher, and trust governance has a positive impact on both radical innovation and incremental innovation (II).

The Empirical Analysis of Small and Medium Sized Pharmaceutical Enterprises Operating Performance and Debt Source Structure

2014 ◽  
Vol 496-500 ◽  
pp. 2872-2875
Author(s):  
Jian Jun Li
Keyword(s):  
Pharmaceutical Industry ◽  
Business Performance ◽  
Negative Impact ◽  
Positive Impact ◽  
Debt Financing ◽  
Pharmaceutical Enterprise ◽  
The Relationship ◽  
The Empirical Analysis ◽  
Source Structure ◽  
Pharmaceutical Enterprises

in this paper, take 30 enterprises from Shenzhen SME board and the GEM pharmaceutical industry as samples, using empirical methods to study the relationship between the pharmaceutical industry and business performance and debt source structure. The results showed that small and medium-sized pharmaceutical enterprises have a negative impact on business performance, and operating liabilities have a positive impact on business performance; compared with the small service enterprises, performance of small and medium-sized pharmaceutical enterprise is poor, because its operating liabilities rate is relatively low, and the financial leverage is higher. Therefore, when small and medium-sized pharmaceutical enterprise debt financing, financing should be appropriate for financial liabilities, and should strengthen the management of debt financing.

scholarly journals Technology-Independent Directors and Innovative Knowledge Assets: A Contingency Perspective

2021 ◽  
Vol 13 (16) ◽  
pp. 9106
Author(s):  
Yexin Liu ◽  
Weiwei Wu ◽  
Ruixiang Han
Keyword(s):  
Resource Dependence ◽  
Positive Impact ◽  
Fixed Effect Model ◽  
Resource Dependence Theory ◽  
Independent Directors ◽  
Sustainable Competitive Advantage ◽  
Knowledge Assets ◽  
Innovation Research ◽  
Impact Of Technology ◽  
The Impact

In the current dynamic and competitive environment, the sustainable competitive advantage of firms has flowed to the development of innovative knowledge assets. Drawing on resource dependence theory, this paper develops a contingency research model to explore how technology-independent directors affect innovative knowledge assets. A sample of Chinese manufacturing firms listed on Shanghai and Shenzhen Stock Exchanges between 2010 and 2019 was used for the regression analysis. By employing the fixed effect model, the results show that technology-independent directors have a significant positive impact on innovative knowledge assets. Furthermore, the impact of technology-independent directors on innovative knowledge assets is strengthened in the firms that are state-owned, larger, and older. These results provide important insights related to innovation research.

scholarly journals Innovation Capabilities and Performance of Malaysian Agricultural SMEs: The Moderating Role of Strategic Alliance

2021 ◽  
Vol 22 (2) ◽  
pp. 675-695
Author(s):  
Nurul Izni Kamalrulzaman ◽  
Azlinzuraini Ahmad ◽  
Akmalia Mohamad Ariff ◽  
Mohd Shaladdin Muda
Keyword(s):  
Strategic Alliances ◽  
Resource Sharing ◽  
Strategic Alliance ◽  
Joint Venture ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
World Market ◽  
Market Demand ◽  
The Relationship

Small and Medium Enterprises (SMEs) in the agriculture sector in Malaysia are still seen to contribute only a small portion towards Gross Domestic Product (GDP) and the total number of the national workforce. As for agricultural SMEs, innovation activities are needed to produce quality agricultural-based products to meet the increasing of Malaysia and world market demand. Nevertheless, innovation among agricultural SMEs is still less encouraging. Hence, this study aims to investigate the effect of innovation capabilities towards performance of agricultural SMEs in Malaysia and determine the role of strategic alliance as a moderator in influencing the performance of agricultural SMEs. The conceptual framework of innovation capabilities is based on Resource-Based View Theory and Schumpeter Innovation Theory that considers strategic alliance will positively affect the relationship between innovation capabilities and SME performance. A total of 136 respondents from Agricultural SMEs were used for data analysis process using SmartPLS 3.0 software. The results show that innovation capabilities have a positive impact on the performance of SMEs, while strategic alliance does not affect the relationship between innovation capabilities and agricultural SME performance. Although strategic alliance has insignificant effect, this might be resulted from the emphasis of this study as it defined strategic alliances as acquisitions of companies. For agricultural SMEs in Malaysia, entrepreneurs need to look at an alliance from a positive perspective by looking it as a joint venture process in resource sharing that will benefit the enterprises, thus it is not only meant acquisition. The implication of this study is expected to contribute and enhance the role of innovation capabilities among entrepreneurs and strategic alliances in the Malaysian agricultural SMEs.

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