The Process of Value Realization in Asymmetric New Venture Development Alliances: Governing the Transition from Exploration to Exploitation
47 Pages Posted: 28 Jul 2012
Date Written: July 27, 2012
Based on a case study of three asymmetric new venture development (ANVD) alliances, we examine the governance of transitions from exploration to exploitation. We propose that role deficiencies, technological asymmetry, and the presence of a separate venture unit at established firms constitute important initial conditions influencing value realization in ANVD alliances. We further show that role-specific investments act as more appropriate mechanisms than contractual incentives to govern transitions from exploration to exploitation. Jointly, these findings provide new insights into the impact of structural and relational governance mechanisms on value creation in interfirm relationships.
Keywords: alliances, new venture development, value realization, comparative case study
JEL Classification: M10, L24
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