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Explaining Preferences for Control Rights in Strategic Alliances: A Property Rights and Capabilities Perspective Approach

46 Pages Posted: 8 Sep 2012 Last revised: 29 Oct 2015

Carolin Häussler

University of Passau

Matthew John Higgins

Georgia Institute of Technology & NBER; National Bureau of Economic Research (NBER)

Date Written: September 2012

Abstract

Increases in alliance activity between research-intensive firms and incumbents is puzzling since it is challenging to contract upon highly uncertain R&D activities. Our paper extends prior research by exploring the relationship between firm capabilities and preferences for control rights. This link is important because the allocation of control rights has been shown to influence alliance outcomes. Using data based on a survey of biotechnology firms, we find that both current and future capabilities provide strong explanatory power for understanding preferences for control rights. Our results allow us to integrate aspects of the capabilities perspective into the property rights framework.

Suggested Citation

Häussler, Carolin and Higgins, Matthew John, Explaining Preferences for Control Rights in Strategic Alliances: A Property Rights and Capabilities Perspective Approach (September 2012). NBER Working Paper No. w18364. Available at SSRN: https://ssrn.com/abstract=2143551

Carolin Haeussler (Contact Author)

University of Passau ( email )

Innstrasse 27
Passau, 94032
Germany

Matthew John Higgins

Georgia Institute of Technology & NBER ( email )

800 West Peachtree Street
Atlanta, GA 30308
United States
404-894-4368 (Phone)
404-894-6030 (Fax)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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