The Process of Value Realization in Asymmetric New Venture Development Alliances: Governing the Transition from Exploration to Exploitation

47 Pages Posted: 28 Jul 2012

See all articles by Dries Faems

Dries Faems

Groningen University

Bart Van Looy

KU Leuven - Department of Economics

Maddy Janssens

Catholic University of Leuven (KUL)

Paul W.L. Vlaar

Erasmus University Rotterdam (EUR) - Department of Strategic Management and Entrepreneurship

Date Written: July 27, 2012

Abstract

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

Suggested Citation

Faems, Dries and Van Looy, Bart and Janssens, Maddy and Vlaar, Paul W.L., The Process of Value Realization in Asymmetric New Venture Development Alliances: Governing the Transition from Exploration to Exploitation (July 27, 2012). Available at SSRN: https://ssrn.com/abstract=2118620 or http://dx.doi.org/10.2139/ssrn.2118620

Dries Faems (Contact Author)

Groningen University ( email )

Postbus 72
9700 AB Groningen
Netherlands

Bart Van Looy

KU Leuven - Department of Economics ( email )

Leuven, B-3000
Belgium

Maddy Janssens

Catholic University of Leuven (KUL) ( email )

Naamsestraat 69
B-3000 Leuven
Belgium
32 16 326874 (Phone)
32 16 326732 (Fax)

Paul W.L. Vlaar

Erasmus University Rotterdam (EUR) - Department of Strategic Management and Entrepreneurship ( email )

RSM Erasmus University
Rotterdam, 3000 DR
Netherlands
+31 10 408 9613 (Phone)
+31 10 408 9013 (Fax)

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