Explaining Preferences for Control Rights in Strategic Alliances: A Property Rights and Capabilities Perspective Approach

Häussler, Carolin; Higgins, Matthew John

doi:10.2139/ssrn.1716435

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Explaining Preferences for Control Rights in Strategic Alliances: A Property Rights and Capabilities Perspective Approach

40 Pages Posted: 29 Nov 2010 Last revised: 29 Oct 2015

See all articles by Carolin Häussler

Matthew John Higgins

University of Utah - Department of Entrepreneurship & Strategy; National Bureau of Economic Research (NBER); Max Planck Institute for Innovation and Competition

Date Written: October 16, 2011

Abstract

Increases in alliance activity between research-intensive firms and incumbents is puzzling since it is challenging to contract upon highly uncertain R&D activities. Our paper extends prior research by exploring the relationship between firm capabilities and preferences for control rights. This link is important because the allocation of control rights has been shown to influence alliance outcomes. Using data based on a survey of biotechnology firms, we find that both current and future capabilities provide strong explanatory power for understanding preferences for control rights. Our results allow us to integrate aspects of the capabilities perspective into the property rights framework.

Keywords: Organizational Economics, Property Rights, Capabilities Perspective, Strategic Alliances, Contract Theory

JEL Classification: L14, M13, O32, D82

Suggested Citation: Suggested Citation

Haeussler, Carolin and Higgins, Matthew John, Explaining Preferences for Control Rights in Strategic Alliances: A Property Rights and Capabilities Perspective Approach (October 16, 2011). Available at SSRN: https://ssrn.com/abstract=1716435 or http://dx.doi.org/10.2139/ssrn.1716435