The Performance Implications of Timing of Entry and Involvement in Multi-Partner Alliances

Abstract

We examined the distribution of benefits to partners in multipartner alliances by concentrating on dynamics of partner entry and involvement. Testing hypotheses in the Wi-Fi Alliance, we observed heterogeneity of benefits. In particular, the extent of organizational involvement in this alliance enhanced partners' reputation and market success with related product introductions but reduced their productivity. Participating in competing alliances enhanced productivity and market success despite potential efficiency losses. Finally, early alliance entrants gained market success, and both early and late entrants were more productive than intermediate entrants. These findings illuminate multipartner alliance complexity and disparity between common and private benefits.

Keywords: Alliance, Network, Multi-Partner, Performance, Timing, Entry, Organizational Involvement, Competition