Addressing Endogeneity Issues in Alliance Research

14 Pages Posted: 4 May 2015

See all articles by Octavio Martinez

Octavio Martinez

INCAE - INCAE Business School

Joanne E. Oxley

University of Toronto - Joseph L. Rotman School of Management

Brian S. Silverman

University of Toronto - Rotman School of Management

Date Written: March 15, 2015

Abstract

The ultimate goal of strategy scholars in alliance research is to understand how alliances contribute to firm performance. Empirical researchers face myriad questions about the causal underpinnings of firm performance and learning: How can one disentangle the influence of process and structure on alliance outcomes? To what extent are asymmetries in learning the outcome of alliance design versus partner firms’ inherent capabilities or orientation? What other determinants of partners’ bargaining power affect firms’ decisions about appropriate partners, the design of alliance structures and processes, and ultimately the learning that each firm takes from the alliance? We attempt to crystallize the identification problem in empirical studies of alliance organization and performance, document the evolution from blissful ignorance through dawning awareness to growing methodological sophistication in alliance research published in key strategy and organizations journals, and offer some thoughts on useful trajectories for future work.

Keywords: alliances, joint ventures, endogeneity

JEL Classification: L24, L22, D22, D23, M10

Suggested Citation

Martinez, Octavio and Oxley, Joanne E. and Silverman, Brian S., Addressing Endogeneity Issues in Alliance Research (March 15, 2015). Rotman School of Management Working Paper No. 2601780, Available at SSRN: https://ssrn.com/abstract=2601780 or http://dx.doi.org/10.2139/ssrn.2601780

Octavio Martinez

INCAE - INCAE Business School ( email )

Alajuela
Costa Rica

Joanne E. Oxley

University of Toronto - Joseph L. Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada
416-978-0305 (Phone)

Brian S. Silverman (Contact Author)

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada

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