Strategic Change and Termination of Interfirm Partnerships

Strategic Management Journal, Forthcoming

50 Pages Posted: 21 Feb 2010

See all articles by Anna Shaojie Cui

Anna Shaojie Cui

University of Illinois at Chicago - College of Business Administration

Roger Calantone

Michigan State University

David A. Griffith

Michigan State University

Date Written: January 28, 2010

Abstract

An evolutionary perspective of the resource-based view is adopted to understand how changes in a partner firm’s overall strategy may influence the firm’s interfirm partnerships over time. We contend that changes in a partner firm’s overall resource deployment strategy and partnering strategy influence the value and uniqueness of partnership resources. These changes alter the competitive advantage associated with partnership resources, affecting the propensity of partnership termination. An event history analysis is employed with 150 joint ventures over the period 1990 to 2001 to examine partnership termination within a longitudinal dataset. With initial partnership conditions controlled for, the results indicate significant influences of various changes in partner firm overall resource deployment strategy and partnering strategy on the propensity of partnership termination. Further, competitor imitative activities are found to increase the propensity of termination as they reduce the uniqueness of partnership resources. This study provides support for an evolutionary perspective of resource value and competitive advantage that incorporates strategic change over time.

Keywords: Partnership, Joint Venture, Termination, Strategic Change, Evolution, Resource Value

Suggested Citation

Cui, Anna Shaojie and Calantone, Roger and Griffith, David A., Strategic Change and Termination of Interfirm Partnerships (January 28, 2010). Strategic Management Journal, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1544122

Anna Shaojie Cui (Contact Author)

University of Illinois at Chicago - College of Business Administration ( email )

601 South Morgan Street
11th Floor
Chicago, IL 60607
United States

Roger Calantone

Michigan State University ( email )

Agriculture Hall
East Lansing, MI 48824-1122
United States

David A. Griffith

Michigan State University ( email )

Agriculture Hall
East Lansing, MI 48824-1122
United States

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