Sequence Patterns of Firms' Acquisition and Alliance Behaviour and Their Performance Implications

Abstract

Studying repetitive acquisition and alliance behaviours from a temporal perspective, we conceptualize a taxonomy of sequence patterns. Our approach defines sequences as the set of acquisition and alliances a firm initiates each year over its life‐course. Using optimal matching techniques and clustering analysis, we empirically identify seven different sequence patterns and demonstrate that firm and performance attributes differ across these sequences and depending on the contingent effect of a firm's stage of development. We discuss the implications of our taxonomy and findings for our understanding of the temporal management of alliance portfolios and acquisition programmes.