International http://isb.sagepub.com/ Small Business Journal
Alliance Formation Motives in SMEs : An Explorative Conjoint Analysis Study Anita Van Gils and Peter S. Zwart International Small Business Journal 2009 27: 5 DOI: 10.1177/0266242608098345 The online version of this article can be found at: http://isb.sagepub.com/content/27/1/5
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)NTERNATIONAL 3MALL "USINESS *OURNAL 6AN 'ILS :WART !LLIANCE &ORMATION -OTIVES IN 3-%S #OPYRIGHT ¥ 3!'% 0UBLICATIONS ,OS !NGELES ,ONDON .EW $ELHI 3INGAPORE AND 7ASHINGTON $# HTTPISBSAGEPUBCOM ;$/)= 6OL n
!LLIANCE &ORMATION -OTIVES IN 3-%S !N %XPLORATIVE #ONJOINT !NALYSIS 3TUDY ! . ) 4! 6! . ' ) , 3 -AASTRICHT 5NIVERSITY 4HE .ETHERLANDS
0 % 4 % 2 3 : 7! 24 5NIVERSITY OF 'RONINGEN 4HE .ETHERLANDS #OOPERATIVE AGREEMENTS ARE IMPORTANT TOOLS TO IMPROVE THE COMPETITIVE POSITION OF SMALL AND MEDIUM SIZED lRMS 4HIS EXPLORATIVE CONJOINT ANALYSIS STUDY SIMULTANEOUSLY EXAMINES THE IMPORTANCE OF lRM ENVIRONMENTAL AND PARTNER MOTIVES ON THE FORMATION OF TWO TYPES OF 3-% ALLIANCES )N ADDITION WE STUDY THE INmUENCE OF THE SECTOR OF INDUSTRY AND THE #%/S CHARACTERISTICS 2ESULTS INDICATE THAT ALLIANCE FORMATION IS DETERMINED BY A COMBINATION OF ORGANIZATIONAL PARTNER AND INDUSTRY RELATED MOTIVES AND THAT EACH OF THESE FACTORS SHOULD NOT BE STUDIED IN ISOLATION -OREOVER MOTIVES DIFFER ACROSS FUNCTIONAL AREA TYPES OF ALLIANCES AND BOTH THE SECTOR OF INDUSTRY AND A #%/S EXPERIENCE AFFECT THE PROBABILITY OF ALLIANCE CREATION + % 9 7/ 2 $ 3 ALLIANCE FORMATION ALLIANCE MOTIVES CONJOINT ANALYSIS 3-% STRATEGIC ALLIANCE
)NTRODUCTION )N TODAYS FAST CHANGING BUSINESS CLIMATE n REmECTED IN THE DEGREE AND IMPORTANCE OF ACTIVITIES SUCH AS GLOBALIZATION DIVERSIlCATION INNOVATION KNOWLEDGE MANAGEMENT AND ORGANIZATIONAL LEARNING n SMALL AND MEDIUM SIZED ENTERPRISES 3-%S INCREASINGLY OPT FOR STRATEGIC ALLIANCES !REND $ANA ,OHRKE ET AL 3UAREZ 6ILLA 6AN 'ILS AND :WART 7EAVER AND $ICKSON 3TRATEGIC ALLIANCES ARE LONG TERM COOPERATIVE AGREEMENTS IN WHICH TWO OR MORE PARTNERS SHARE RISKS AND RESOURCES AND GAIN KNOWLEDGE OR ACCESS TO MARKETS IN ORDER TO IMPROVE THE lRMS COMPETITIVE POSITION (ITT ET AL 0REVIOUS RESEARCH INDICATES THAT STRATEGIC ALLIANCES REPRESENT A VIABLE WAY FOR SMALLER lRMS TO GAIN ACCESS TO NEW INTERNATIONAL MARKETS !HERN (ARA AND +ANAI EXTERNAL COMPLEMENTARY RESOURCES $EEDS AND (ILL (OFFMANN AND 3CHLOSSER (OLMLUND AND +OCK -ILES ET AL EMBEDDED TACIT KNOWLEDGE $AVENPORT AND -ILLER +OCH AND 3TROTMANN AND CAPITAL #ARAYANNIS ET AL #OOMBS AND $EEDS
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)NTERNATIONAL 3MALL "USINESS *OURNAL )N TURN THESE FACTORS RESULT IN INCREASED RATES OF NEW PRODUCT DEVELOPMENT RAPID LEARNING AND CHANGE lRM GROWTH VALUE CREATION AND GAINS IN MARKET SHARE PROlT ABILITY AND COMPETITIVENESS !LVAREZ AND "ARNEY #OOMBS AND $EEDS 'OLDEN AND $OLLINGER (OFFMANN AND 3CHLOSSER ,EE AND -ULFORD !LTHOUGH ALLIANCES CAN ALSO EXPOSE lRMS TO RISKS SUCH AS STRATEGIC INFORMATION LEAKAGE TO A PARTNER (AMEL OR OPPORTUNISTIC BEHAVIOUR BY ALLIANCE PARTNERS $ICKSON ET AL MORE THAN EVER MANY OF THE SKILLS RESOURCES AND KNOWLEDGE ESSENTIAL TO A COMPANYS PROSPERITY LIE OUTSIDE THE lRMS BOUNDARIES 4HE CAPACITY TO COLLABORATE HAS THEREFORE BECOME A CORE COMPETENCE FOR LARGE ORGANIZATIONS $OZ AND (AMEL AND A NECESSITY FOR SMALLER ONES !S A RESULT OF THE INCREASING FREQUENCY OF ALLIANCE FORMATION DURING THE LAST YEARS %BERS 'ULATI 3ACHWALD INTEREST IN FORMATION MOTIVES HAS BEEN SPARKED 3EVERAL FACTORS BASED ON DIVERGENT THEORETICAL PERSPECTIVES HAVE BEEN SUGGESTED TO EXPLAIN ALLIANCE FORMATION /RGANIZATIONAL EXCHANGE THEORISTS ,EVINE AND 7HITE WERE AMONG THE lRST AUTHORS TO EMPHASIZE THE COST REDUCTIONS THAT COULD BE REALIZED AT THE lRM LEVEL COOPERATION WAS PROMOTED IN CASES OF SCARCE RESOURCES )N THE S RESEARCHERS INTRODUCED THE REDUCTION OF TRANSACTION COSTS 7ILLIAMSON POWER MAXIMIZATION OVER RESOURCES AND A REDUCTION OF UNCERTAINTY 0FEFFER AND 3ALANCIK AS IMPORTANT lRM AND ENVIRONMENTAL MOTIVES TO THE ALLIANCE LITERATURE !T PRESENT SOCIAL EMBEDDEDNESS "URT 'ULATI RESOURCE BASED %ISENHARDT AND 3CHOONHOVEN 4ENG AND KNOWLEDGE BASED ARGUMENTS "ADARACCO 'RANT AND "ADEN &ULLER ARE FREQUENTLY CITED AS IMPORTANT PARTNER AND lRM RELATED DETERMINANTS OF ALLIANCE FORMATION ! VAST AMOUNT OF EMPIRICAL STUDIES HAVE TESTED THESE THEORETICAL ARGUMENTS ACROSS ORGANIZATIONAL CONTEXTS AND THEREBY SERIOUSLY IMPROVED OUR UNDERSTANDING OF ALLIANCE FORMATION MOTIVES (OWEVER FEW STUDIES HAVE EXAMINED FIRM ENVIRONMENTAL AND PARTNER RELATED FACTORS SIMULTANEOUSLY 0ARK ET AL 3TUART 3TUDIES INVESTIGATING ALLIANCES IN 3-%S ALMOST SOLELY ANALYSE THE SIGNIlCANCE OF A LIMITED NUMBER OF ORGANIZATIONAL OR ENVIRONMENTAL FACTORS )N REALITY AN 3-% OWNERMANAGER CONSIDERS MANY MORE FACTORS BEFORE ENTERING INTO AN ALLIANCE 'IVEN THE COMPLEXITY OF ALLIANCE DECISIONS A STUDY NEEDS TO BE CONDUCTED THAT DIRECTLY MEASURES ALLIANCE MOTIVES AT ALL LEVELS "ESIDES ALLIANCE MOTIVES CAN DIFFER ACCORDING TO THE TYPE OF ALLIANCE (UYZER ET AL THE SECTORS OF INDUSTRY THE lRM IS OPERATING IN (AGEDOORN AND THE CHARACTERISTICS OF THE #%/ INVOLVED 4YLER AND 3TEENSMA 5SING A CONJOINT ANALYSIS METHOD THIS EXPLORATIVE STUDY INVESTIGATES THE COMBINATION AND THE IMPORTANCE OF lRM PARTNER RELATED AND ENVIRONMENTAL MOTIVES LEADING TO ALLIANCE FORMATION IN 3-%S AND THE INmUENCE OF ALLIANCE TYPE INDUSTRY SECTOR AND #%/ CHARACTERISTICS ON ALLIANCE FORMATION MOTIVES 4HE RESULTS OF THIS STUDY EXECUTED AMONGST "ELGIAN AND $UTCH 3-%S IN THE MANUFACTURING INDUSTRY PROVIDE A MUCH MORE DETAILED INSIGHT INTO ALLIANCE FORMATION MOTIVES OF 3-% OWNERSMANAGERS )N THE FOLLOWING PART OF THIS ARTICLE AN ASSESSMENT IS MADE OF THE LITERATURE ON 3-% ALLIANCES "ASED ON THE LIMITATIONS OF THESE STUDIES AND CONCLUSIONS IN THE GENERAL ALLIANCE LITERATURE RESEARCH PROPOSITIONS ARE FORMULATED .EXT WE ELAB ORATE BRIEmY ON THE SAMPLE AND METHOD )N THE RESULTS SECTION THE lNDINGS ARE DISCUSSED 4HE IMPLICATIONS OF THIS STUDY ARE PRESENTED IN THE DISCUSSION PART
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6AN 'ILS :WART !LLIANCE &ORMATION -OTIVES IN 3-%S
4HEORETICAL $EVELOPMENT ! REVIEW OF OVER ARTICLES INVESTIGATING STRATEGIC ALLIANCES IN 3-%S AND PUBLISHED IN SMALL BUSINESS TECHNOLOGY ORGANIZATION STRATEGY AND MANAGEMENT JOURNALS REVEALS THAT n BESIDES PERFORMANCE ISSUES n THE MOTIVES TOWARDS ALLIANCE FORMATION ARE AN IMPORTANT RESEARCH SUBJECT SEE 4ABLE $IFFERENT AUTHORS HAVE FOCUSED ON DIFFERENT LEVELS OF FORMATION MOTIVES NAMELY THOSE RELATED TO THE lRM INDUSTRY DYADIC RELATIONSHIP OR INSTITUTIONAL SOCIETY !T lRST SIGHT ONE NOTICES THE SIGNIlCANT ATTENTION THAT HAS BEEN GIVEN TO lRM ORGANIZATIONAL AND INDUSTRY ENVIRONMENTAL MOTIVES OF ALLIANCE FORMATION $IFFERENCES IN RESOURCE ENDOWMENTS lRM SIZE AND 2$ OR INNOVATION RELATED ASPECTS ARE MOST FREQUENTLY CITED AT THE ORGANIZATIONAL LEVEL 4HEORIES BUILT UPON ARE RESOURCE DEPENDENCE THEORY -ILES ET AL 0ARK ET AL RESOURCE BASED THEORY "AYONA ET AL %ISENHARDT AND 3CHOONHOVEN +ELLEY AND 2ISE 0ARK ET AL AND STRATEGIC BEHAVIOUR OR MANAGEMENT THEORIES 0ARK ET AL 3HAN 3HAN ET AL !T THE ENVIRONMENTAL LEVEL MARKET INDICATORS COMPETITIVE POSITIONING OF THE lRM AND UNCERTAINTY GENERAL AND TECHNOLOGICAL ARE FREQUENTLY CITED 4HIS STREAM OF LITERATURE IS MAINLY ROUTED IN TRANSACTION COST THEORY $ICKSON AND 7EAVER 3HAN 3TEENSMA ET AL A !UTHORS ALSO REFER TO SOCIAL NETWORK ANALYSIS 0OWELL AT AL AND POWER PERSPECTIVES -ASUREL AND *ANSZEN !LTHOUGH IN THE GENERAL ALLIANCE LITERATURE SEVERAL AUTHORS (ITT ET AL 3AXTON HAVE EMPHASIZED THE IMPORTANCE OF PARTNER OR RELATIONSHIP CHARACTERISTICS FOR THE FORMATION AND THE OUTCOMES OF ALLIANCES THESE CHARACTERISTICS REMAIN LARGELY UNEXPLORED WITHIN THE CONTEXT OF 3-%S .EVERTHELESS THE DYADIC LEVEL PERSPECTIVE STEMMING FROM SOCIAL NETWORK THEORY HAS RESULTED IN VAST AMOUNTS OF ARTICLES ON NETWORKS IN AN ENTREPRENEURIAL CONTEXT FOR A REVIEW SEE (OANG AND !NTONCIC -ILLER ET AL 3HAW 3TUART PROPOSES THAT lRMS WILL ENTER ALLIANCES ONLY WHEN THEY POSSESS EXCHANGE PARTNERS WITH WHOM THEY FORECAST A HIGH PROBABILITY OF A STRATEGICALLY OR lNANCIAL BENElCIAL COLLABORATION )N HIS OPINION THE AVAILABILITY OF SUCH PARTNERS IS VERY OFTEN THE BINDING CONSTRAINT ON ALLIANCE FORMATIONS .EVERTHELESS ONLY A FEW AUTHORS "ARNIR AND 3MITH "IANCHI 3HAN ET AL HAVE STUDIED THE IMPORTANCE OF PARTNER CHARACTERISTICS AS ALLIANCE FORMATION MOTIVES AMONG 3-%S 4HE MOST IMPORTANT PROBLEM AT THE LEVEL OF THE INSTITUTIONAL SOCIETY IS PROBABLY THE LACK OF COMPARABLE EMPIRICAL DATA RELATED TO 3-% ALLIANCES ON AN INTERNATIONAL LEVEL 3O FAR ONLY THE RESEARCH GROUP OF 3TEENSMA A B HAS BEEN ABLE TO COLLECT THIS TYPE OF DATA !LTHOUGH 4ABLE ILLUSTRATES THAT MANY ALLIANCE MOTIVES HAVE BEEN IDENTIlED WITHIN AN 3-% CONTEXT ONLY FEW RESEARCH STUDIES EXAMINE THE INTERACTION BETWEEN DIFFERENT LEVELS OF ALLIANCE MOTIVES 0ARK ET AL STUDYING INTERNAL AND EXTERNAL DRIVERS OF ALLIANCES EXPRESSED SURPRISE AT THE LACK OF RESEARCH ON HOW THESE TWO DISTINCT FACTORS INTERACT IN ORDER TO DETERMINE A lRMS STRATEGIC CHOICE TO FORM ALLI ANCES !LTHOUGH IN !USTER ALREADY INDICATED THE NEED TO STUDY INTERACTIONS BETWEEN DIFFERENT LEVELS OF ALLIANCE DETERMINANTS OR MOTIVES 0ARK ET AL NOTICE THAT MOST STUDIES STILL TREAT INDUSTRY AND lRM FACTORS AS INDEPENDENT DRIVERS OF ALLIANCES -OREOVER WITHIN 3-% RESEARCH THE POTENTIAL PARTNERS OR RELATIONSHIP CHARACTERISTICS REMAIN LARGELY UNEXPLORED WHEN EXAMINING ALLIANCE INTENTIONS
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3HAN $ICKSON AND 7EAVER "AYONA ET AL /LIVER "ARNIR AND 3MITH -ARINO ET AL 0ARK ET AL 3TEENSMA ET AL A !REND %ISENHARDT AND 3CHOONHOVEN /LIVER 0ARK ET AL &ORREST $EEDS AND (ILL 3UAREZ 6ILLA "AYONA ET AL $AVENPORT AND -ILLER !LVAREZ AND "ARNEY #HEN AND #HEN 0ARK ET AL !UDRETSCH AND &ELDMAN #HUNG ET AL #HEN AND (UANG (YDER AND !BRAHA .ARULA -C#UTCHEN AND 3WAMIDASS 4ÚTTERMAN AND 3TEN /$WYER AND /&LYNN -ARINO ET AL "AYONA ET AL "AYONA ET AL -C#UTCHEN AND 3WAMIDASS !REND #HUNG ET AL .ARULA /LIVER "IANCHI #HEN AND (UANG %ISENHARDT AND 3CHOONHOVEN "AYONA ET AL 'OLDEN AND $OLLINGER $EEDS AND (ILL (YDER AND !BRAHA +ELLEY AND 2ICE "IANCHI -ILES ET AL "AYONA ET AL #HEN AND (UANG "AYONA ET AL #HEN AND (UANG #HEN AND (UANG $HINGRA $ICKSON AND 7EAVER #HEN AND (UANG $ICKSON AND 7EAVER -ARINO ET AL ,OHRKE ET AL %ISENHARDT AND 3CHOONHOVEN !REND !REND #OOMBS AND $EEDS !REND
&IRM LEVEL
2$ CAPACITY !TTITUDE VERSUS INNOVATION2$ COSTS 4ECHNOLOGICAL DEVELOPMENT STAGEPOSITION 4ECHNOLOGICAL 0RODUCT DIVERSITY 4ECHNOLOGY SHARING 4YPE OF INNOVATION)NNOVATION STRATEGY 3TRATEGY TYPES 2ATE OF NEW PRODUCT DEVELOPMENT )NNOVATIVENESS OF THE lRMS FOUNDING TECHNOLOGY 2ISK PERCEPTION -ARKET SHARE -ARKETING KNOWLEDGEEXPERIENCE %XPANSION SALES CHANNELS )NTERNATIONALIZATION%XPORT INTENSITY %NTREPRENEURIAL ORIENTATION 4OP MANAGEMENT TEAM CHARACTERISTICS 3UPPLY CHAIN MANAGEMENT ACTIVITIES /UTSOURCING !TTRACTING CAPITAL 0ERCEPTION OF ALLIANCE BENElTS
&IRM AGE 2ESOURCE ENDOWMENTS!CCESS TO COMPLE MENTARY RESOURCES INCLUDING KNOWLEDGE
&IRM SIZE
!UTHORS
4YPE OF -OTIVE 3PECIlC &ACTOR
4ABLE !LLIANCE &ORMATION -OTIVES IN 3-%S
)NTERNATIONAL 3MALL "USINESS *OURNAL
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0ARTNER STATUS .ETWORK POSITION OF THE lRM 0ROPENSITY TO NETWORK
"ELIEF SYSTEM )NDIVIDUALISMCOLLECTIVISM ORIENTATION 'OVERNMENT POLICY .ATIONAL CULTURE MASCULINITY UNCERTAINTY AVOIDANCE .ATION
)NSTITUTIONAL LEVEL
)MPORTANCE OF NETWORKS OF LEARNING AND INNOVATION /VERALL INDUSTRY ALLIANCES
-ARKET STAGE -ARKET CONCENTRATION -ARKET VOLATILITYDEMAND 4ECHNOLOGICAL INTENSITY 4ECHNOLOGICAL TRAJECTORY MATURITY 4ECHNOLOGICAL UNCERTAINTY 0ERCEIVED ENVIRONMENTAL UNCERTAINTY 0ERCEIVED MUNIlCENCE
$ANA $ICKSON AND 7EAVER ,OHRKE ET AL 3TEENSMA ET AL B -ARINO ET AL 3TEENSMA ET AL A 3TEENSMA ET AL B 3HAN
"IANCHI 3HAN ET AL "ARNIR AND 3MITH "ARNIR AND 3MITH
$ICKSON AND 7EAVER /LIVER -ARINO ET AL ,OHRKE ET AL $OLLINGER AND 'OLDEN %ISENHARDT AND 3CHOONHOVEN ,OHRKE ET AL 3HAN !UDRETSCH AND &ELDMAN -C#UTCHEN AND 3WAMIDASS .ARULA !REND %ISENHARDT AND 3CHOONHOVEN -ASUREL AND *ANSZEN 0ARK ET AL "AYONA ET AL $AVENPORT AND -ILLER 3TEENSMA ET AL A $ICKSON AND 7EAVER -ARINO ET AL 3AWYERR ET AL $OLLINGER AND 'OLDEN -ARINO ET AL ,OHRKE ET AL 0OWELL ET AL 0ARK ET AL
)NDUSTRY TYPE #OMPETITIVE RIVALRY #OMPETITIVE POSITION
$YADIC 0ARTNER LEVEL
)NDUSTRY LEVEL
'OLDBERG ET AL 3HAN ET AL ,OHRKE ET AL 0ARK ET AL ,OHRKE ET AL
"UILDING REPUTATION 0ERFORMANCE !LLIANCE EXPERIENCE$IVERSITY OF EXPERIENCE
6AN 'ILS :WART !LLIANCE &ORMATION -OTIVES IN 3-%S
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)NTERNATIONAL 3MALL "USINESS *OURNAL 7E EXTEND PREVIOUS 3-% RESEARCH BY DIRECTLY EXAMINING MANAGERS ALLIANCE PREFER ENCE STRUCTURES IN RELATION TO lRM INDUSTRY AND POTENTIAL PARTNER CHARACTERISTICS "ASED ON OUR LITERATURE REVIEW n THE RESULT OF A MULTI THEORETICAL ANALYSIS PER SPECTIVE ON ALLIANCE FORMATION IN 3-%S n WE ARGUE THAT WITHIN THE 3-% CONTEXT THE #%/MANAGER WILL BE MOTIVATED BY A COMBINATION OF lRM INDUSTRY AND PARTNER RELATED MOTIVES WHEN DECIDING TO OPT FOR AN ALLIANCE 4HE OWNERMANAGER OCCUPIES A KEY POSITION WITHIN THE ORGANIZATION (E OR SHE IS MARKET ORIENTED GENERATES MARKET INTELLIGENCE AND DISSEMINATES THIS INFORMATION ABOUT THE MARKET THROUGHOUT THE ORGANIZATION 'IBB +OHLI AND *AWORSKI !S A CONSEQUENCE SEVERAL INTERNAL ASPECTS EXTERNAL EVENTS AND RELATIONSHIPS DEVELOPED WILL HAVE THEIR IMPACT ON THE STRATEGIC DECISIONS THE 3-%S #%/ HAS TO TAKE "AMBERGER AND 7RONA 4HEREFORE WE SUGGEST 0ROPOSITION 4HE 3-% MANAGER EVALUATES A COMBINATION OF lRM INDUSTRY AND PARTNER RELATED MOTIVES WHEN FORMING AN ALLIANCE
! SECOND ISSUE RESULTING FROM THE ASSESSMENT OF THE 3-% ALLIANCE LITERATURE RELATES TO THE ALLIANCE TYPES STUDIED -ORE THAN HALF OF THE ARTICLES ON 3-% ALLIANCES DO NOT STIPULATE THE TYPE OF ALLIANCE STUDIED 4HE COOPERATIVE AGREEMENTS ARE LABELLED IN VARIOUS WAYS STRATEGIC ALLIANCES INTER lRM ALLIANCE BUSINESS ALLIANCE INTER lRM COOPERATION INTER ORGANIZATIONAL COOPERATION STRATEGIC PARTNERSHIP ALLIANCE ETC AND CLEAR CONCEPTUALIZATIONS OF THE ITEMS STUDIED ARE OFTEN MISSING (OWEVER ALLIANCES DO DIFFER ACCORDING TO THEIR INDUSTRY GEOGRAPHIC AND FUNCTIONAL AREA SCOPE 6ARADARAJAN AND #UNNINGHAM /F THE GROUP OF ARTICLES WITH A CLEAR FOCUS ON A SPECIlC TYPE OF COOPERATION ALMOST ALL FOCUS ON 2$ OR TECHNOLOGY ALLIANCES /SBORN AND (AGEDOORN ARGUE THAT THE DIFFERENT TYPES OF ALLIANCES SHOULD GET MORE CAREFUL CONSIDERATION WHEN STUDYING ALLIANCE FORMATION 4HEY CLAIM THAT SUCH WORK MIGHT EMPIRICALLY SHOW PREFERRED COMBINATIONS OF THE INTERESTS OF MULTIPLE lRMS AND AREA OF INDUSTRY ACTIVITY FOR SPECIlC TYPES OF ALLIANCES AND NETWORKS 4HIS STUDY WILL INVESTIGATE THE DRIVERS FOR TWO FUNCTIONAL AREA TYPES OF 3-% ALLIANCES NAMELY ALLIANCES WITHIN THE TECHNOLOGYPRODUCTION DOMAIN AND ALLIANCES WITHIN THE MARKETINGDISTRIBUTION DOMAIN "OTH TYPES OF ALLIANCES ARE IMPORTANT IN AN 3-% CONTEXT FOR RESOURCE ACQUISITION REASONS "AYONA ET AL #HEN AND (UANG -OREOVER PREVIOUS RESEARCH HAS EMPHASIZED THE IMPORTANCE OF THESE TYPES OF COOPERATIVE AGREEMENTS "AYONA ET AL #HEN AND (UANG -C'EE AND $OWLING .ARULA "OTH ALLIANCE TYPES ARE ALSO THE TWO MOST COMMONLY USED IN OUR SAMPLE SMALL MANUFACTURING lRMS 7E ARGUE THAT LABELLING THE SPECIlC TYPE OF ALLIANCE IS IMPORTANT IN STUDYING ALLIANCE FORMATION MOTIVES AS DIFFERENT MOTIVES WILL BE AT THE BASIS OF DIFFERENT ALLIANCE TYPES "ESIDES /SBORN AND (AGEDOORN SUGGEST THAT THE IMPORTANCE OF DIFFERENT LEVELS lRM INDUSTRY AND PARTNER COULD VARY WITHIN DIFFERENT FUNCTIONAL AREA ALLIANCES 4HE MAIN GOAL OF FOR INSTANCE CO MARKETING ALLIANCES IS TO ACHIEVE SUPERIOR MARKET POSITIONS AND PERFORMANCE IN TERMS OF SALES MARKET SHARE AND PROlTABILITY 4HOUMRUNGROJE AND 4ANSUHAJ )N THIS CONTEXT ENVIRONMENTAL ISSUES AS POTENTIAL NUMBER OF NEW CLIENTS COMPETITION IN THE NEW MARKET AND PARTNER CHARACTERISTICS AS FOR INSTANCE THE LOCATION OF THE POTENTIAL PARTNER WILL OUTWEIGH INTERNAL MOTIVATIONS &OR A TECHNOLOGICAL ALLIANCE PARTNER CHARACTERISTICS AND ENVIRONMENTAL ISSUES REMAIN
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6AN 'ILS :WART !LLIANCE &ORMATION -OTIVES IN 3-%S IMPORTANT BUT INTERNAL ISSUES AS FOR INSTANCE THE lRMS RESOURCES ITS KNOWLEDGE BASE AND ABSORPTIVE CAPACITY WILL BECOME MORE IMPORTANT #HEN +ELLY AND 2ICE 4HIS LEADS US TO THE FOLLOWING PROPOSITIONS 0ROPOSITION 4HE 3-%S MOTIVES TO ENTER INTO A STRATEGIC ALLIANCE WILL VARY ACCORDING TO THE FUNCTIONAL AREA TYPE OF ALLIANCE THE 3-% WANTS TO ENGAGE IN 0ROPOSITION 4HE IMPORTANCE OF THE DIFFERENT LEVELS OF ALLIANCE MOTIVES lRM ENVIRON MENT PARTNER CHARACTERISTICS WILL VARY ACCORDING TO THE FUNCTIONAL AREA TYPE OF ALLIANCE THE 3-% WANTS TO ENGAGE IN
&INALLY MOST 3-% ALLIANCE STUDIES HAVE NOT DIRECTLY TESTED THE IMPACT OF THE SECTOR OF INDUSTRY THE lRM IS OPERATING IN AS WELL AS THE INmUENCE OF THE #%/S CHARACTERISTICS (OWEVER ALLIANCE RESEARCH ILLUSTRATES THAT ALLIANCE MOTIVES WILL DIFFER DEPENDING ON THE SECTOR A lRM IS OPERATING IN (AGEDOORN -OREOVER ACCORDING TO UPPER ECHELON THEORY &INKELSTEIN AND (AMBRICK ORGANIZATIONAL OUTCOMES ARE EMINENTLY TRACEABLE TO THE INDIVIDUALS AT THE TOP OF THE lRM %XECUTIVES VARY IN THEIR EXPERIENCE CAPABILITIES VALUES AND PERSONALITIES 4HESE DIFFERENCES IN TURN CAUSE EXECUTIVES TO DIFFER IN THEIR AWARENESS AND INTERPRETATION OF STRATEGIC STIMULI THEIR ASPIRATION LEVELS THEIR BELIEFS ABOUT CAUSATION EVEN THEIR BELIEFS ABOUT WHAT IT IS THEY ARE TRYING TO ACCOMPLISH AND HOW URGENT IT IS )T FOLLOWS THAT EXECUTIVES WILL DIFFER IN THEIR BEHAVIOURS AND CHOICES THE ORGANIZATION BECOMES @A REmECTION OF ITS TOP MANAGERS (AMBRICK AND -ASON (OWEVER THE BEHAVIOURS AND CHOICES OF MANAGERS IN ONE INDUSTRY COULD BE VERY SIMILAR AS RESEARCHERS 0RAHALAD AND "ETTIS ARGUE THAT MANAGERS DEVELOP A DOMINANT GENERAL MANAGEMENT LOGIC 7HEN TAKING DECISIONS THEY CONSISTENTLY USE MENTAL MAPS DEVELOPED THROUGH EXPERIENCE IN A CORE BUSINESS &OR .ORWEGIAN 3-%S $ICKSON AND 7EAVER ILLUSTRATED THAT BOTH ENTREPRENEURIAL AND INDIVIDUALISMCOLLECTIVISM ORIENTATIONS ACTED AS MODERATORS ON THE LINK BETWEEN PERCEIVED ENVIRONMENTAL UNCERTAINTY AND ALLIANCE USE 7ITH RESPECT TO TECHNOLOGICAL ALLIANCES 4YLER AND 3TEENSMA REPORTED THAT TOP EXECUTIVES PERSONAL CHARACTERISTICS AGE EDUCATIONAL BACKGROUND AND WORK EXPERIENCE INmUENCE THEIR COGNITIVE ASSESSMENTS OF POTENTIAL ALLIANCES 4HE PREVIOUS DISCUSSION LEADS TO THE FOLLOWING PROPOSITIONS 0ROPOSITION 7ITHIN A SPECIlC FUNCTIONAL ALLIANCE TYPE ALLIANCE FORMATION MOTIVES WILL DIFFER ACCORDING TO THE SECTOR OF INDUSTRY THE 3-% IS OPERATING IN 0ROPOSITION 7ITHIN A SPECIlC FUNCTIONAL ALLIANCE TYPE ALLIANCE FORMATION MOTIVES WILL DIFFER ACCORDING TO THE CHARACTERISTICS OF THE 3-%S OWNERMANAGER
2ESEARCH -ETHODOLOGY 3AMPLE !S THE GOAL OF THIS ARTICLE IS TO EXPLORE THE COMBINATION AND THE IMPORTANCE OF DIFFERENT LEVELS OF ALLIANCE FORMATION MOTIVES A CONJOINT ANALYSIS TECHNIQUE WAS SELECTED 4HIS STATISTICAL TECHNIQUE IS A PROPER METHOD TO RANK ORDER A LARGE GROUP OF ATTRIBUTES AND IS CONSIDERED TO BE AN APPROPRIATE OPTION FOR THIS STUDY AS WE TEST A LOT OF DIFFERENT ALLIANCE FORMATION MOTIVES RELATED TO THE lRM INDUSTRY AND PARTNER LEVEL !S THIS TYPE OF ANALYSIS IS COMPUTER ADMINISTERED AND RATHER TIME
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)NTERNATIONAL 3MALL "USINESS *OURNAL CONSUMING FOR THE RESPONDENTS OUR STUDY IS AN EXPLORATIVE ONE 4HIS EXPLORATIVE RESEARCH PROJECT PRECEDES THE DEVELOPMENT OF HYPOTHESES THAT COULD BE TESTED WITH QUANTITATIVE DATA IN A NEXT STUDY 4HE 3-%S WERE SELECTED FROM DATABASES FROM A "ELGIAN AND A $UTCH EMPLOYERS ORGANIZATION USING THEORETICAL SAMPLING 'LASER AND 3TRAUSS 4HE SMALL BUSINESSES VARIED IN SIZE AND lNANCIAL PERFORMANCE OWNERS OF THESE lRMS VARIED IN CHARACTERISTICS AS AGE EDUCATION AND EXPERIENCE 4WENTY lVE 3-% OWNERS IN "ELGIUM AND THE .ETHERLANDS WERE INTERVIEWED IN ORDER TO DETECT THE REASONS THAT COULD MOTIVATE THEM TO ENTER INTO A STRATEGIC ALLIANCE IN THE DOMAINS OF PRODUCTION2$ AND MARKETINGDISTRIBUTION .INETEEN OF THEM ALSO AGREED TO PARTICIPATE IN THE COMPUTER ADMINISTERED ADAPTIVE CONJOINT STUDY !LL 3-%S IN OUR SAMPLE EMPLOYED LESS THAN EMPLOYEES &IVE RESPONDENTS FOUNDED THE ENTERPRISE THEMSELVES AND WITH THE EXCEPTION OF ONE ALL OTHER lRMS WERE FAMILY lRMS -ANUFACTURING SECTORS THE 3-%S ARE SITUATED IN ARE CONSTRUCTION METAL FOOD AND PLASTICS
-ETHOD )N ORDER TO IDENTIFY THE IMPORTANCE OF EACH OF THE COOPERATION MOTIVES IN THE MAN AGERS DECISION PROCESS CONJOINT ANALYSIS IS AN APPROPRIATE METHOD )NVESTIGATING THE IMPORTANCE OF ALLIANCE MOTIVES WAS NOT DONE BY DIRECT INQUIRY AS THE RESULTS OF SUCH INQUIRY ARE OFTEN QUITE VAGUE 2ESPONDENTS TEND TO INDICATE ALL ELEMENTS AS RATHER IMPORTANT %NTERING INTO A STRATEGIC ALLIANCE IS A COMPLEX DECISION THAT IS NOT BASED ON A SINGLE FACTOR OR REASON BUT ON SEVERAL FACTORS CONSIDERED JOINTLY #ONJOINT ANALYSIS IS A TECHNIQUE THAT REVEALS HOW PEOPLE MAKE SUCH COMPLEX JUDGMENTS IT ENABLES RESEARCHERS TO INFER @TRUE VALUES THAT UNDERLIE RESPONDENTS DECISIONS ! CONJOINT STUDY IS A DE COMPOSITIONAL METHOD THAT ESTIMATES THE STRUCTURE OF A RESPONDENTS PREFERENCE n IE ESTIMATES PREFERENCE PARAMETERS SUCH AS PARTH WORTHS IMPORTANCE WEIGHTS IDEAL POINTS n GIVEN THE RESPONDENTS OVERALL EVALUATION OF A SET OF ALTERNATIVES THAT ARE PRE SPECIlED IN TERMS OF LEVELS OF DIFFERENT ATTRIBUTES 'REEN AND 3RINIVASAN 4HE CONJOINT METHODS HAVE TRADITIONALLY BEEN USED IN MARKETING RESEARCH TO PORTRAY CUSTOMER PREFERENCES AS A TRADE OFF AMONG MULTI ATTRIBUTE PRODUCTS OR SERVICES 7ITTINK AND #ATTIN 7ITTINK ET AL 0RODUCTS OR SERVICES ARE THOUGHT OF AS POSSESSING SPECIlC LEVELS OF DElNED ATTRIBUTES AND A RESPONDENTS @LIKING FOR A PRODUCT IS MODELLED AS THE SUM OF THE RESPONDENTS @UTILITIES FOR EACH OF ITS ATTRIBUTE LEVELS !LTHOUGH DIFFERENT METHODS EXIST FOR THE DESIGN OF THESE KINDS OF CHOICE EXPERI MENTS 'REEN AND 3RINIVASAN !DAPTIVE #ONJOINT !NALYSIS !#! WAS SELECTED AS DATA COLLECTION METHOD BECAUSE OF THE LARGE NUMBER OF ATTRIBUTES THAT HAD TO BE HANDLED IN BOTH STUDIES -OREOVER THE !#! COMPUTER ADMINISTERED INTERVIEW INCREASES THE RESPONDENTS INTEREST AND INVOLVEMENT WITH THE TASK 4HE METHOD STARTS WITH A SELF EXPLICATION TASK IN WHICH THE MANAGERS HAVE TO IDENTIFY THE MORE IMPORTANT ATTRIBUTES 0ARTH WORTHS FOR THESE ATTRIBUTES ARE THEN OBTAINED THROUGH A SERIES OF SCENARIOS WITH PAIRED COMPARISONS !T THE START OF THE TRADE OFF STAGE TWO ATTRIBUTES ARE SHOWN IN ONE PROlLE THE MAXIMUM NUMBER OF ATTRIBUTES THAT COULD MAKE UP A PROlLE WAS LIMITED TO lVE 0AIRS ARE CHOSEN IN SUCH A WAY THAT EACH COOPERATION PROlLE IS APPROXIMATELY EQUAL IN UTILITY TO THE DECISION MAKER !FTER THE MANAGER HAS INDICATED THE PREFERRED PROlLE IN EACH PAIR !#! RElNES ITS UTILITY ESTIMATES
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6AN 'ILS :WART !LLIANCE &ORMATION -OTIVES IN 3-%S IN THIS CASE THE IMPORTANCE OF THE ALLIANCE MOTIVE AND USES THAT INFORMATION TO SELECT THE NEXT PAIR OF CONCEPTS 4HE ESTIMATION METHOD USED TO CALCULATE THE UTILITIES IS METRIC LOGIT REGRESSION ANALYSIS 3AWTOOTH 3OFTWARE 4HE !#! SOFTWARE ALLOWS USERS TO ANALYSE BOTH IDEOGRAPHIC INDIVIDUAL DECISION MAKING OUTCOMES AND NOMOTHETIC QUESTIONS DECISIONS AGGREGATED ACROSS MANY DECISION MAKERS 'IVEN THE SMALL NUMBER OF CASES IN THIS STUDY WE DO NOT CALCULATE AGGREGATE RESULTS BUT USE AVERAGE INDIVIDUAL RESULTS INSTEAD TO EVALUATE THE PROPOSITIONS THREE TO lVE !CCORDING TO !IMAN 3MITH ET AL DATA FROM IDEOGRAPHIC QUESTIONS CAN BE USED IN A MORE EXPLORATORY MANNER TO DETERMINE WHETHER THERE ARE IDENTIlABLE CLUSTERS OF INDIVIDUALS WITH DISTINCT DECISION MAKING PATTERNS
2ESEARCH 2ESULTS !LLIANCE -OTIVES &OR THIS RESEARCH PROJECT THE RESPONDENTS lRST HAD TO IDENTIFY THOSE FACTORS THAT COULD MOTIVATE THEM TO ENTER INTO A PRODUCTIONTECHNOLOGY ALLIANCE OR A MARKETINGDISTRI BUTION ALLIANCE &OR BOTH ALLIANCE TYPES &IGURE PRESENTS AN OVERVIEW OF THE MOTIVES IDENTIlED -OREOVER IT INDICATES THE NUMBER OF TIMES RESPONDENTS HAVE LABELLED THIS FACTOR AS IMPORTANT 4HE lNAL LIST OF COOPERATION MOTIVES CONTAINS FACTORS RELATED TO CHARACTERISTICS OF THE 3-% ORGANIZATION THE EXTERNAL ENVIRONMENT AND THE POTENTIAL COOPERATION PARTNER 4WO IMPORTANT REMARKS CAN BE MADE IN RELATION TO THE ALLIANCE FORMATION MOTIVES IDENTIlED IN THIS STUDY &IRST THE FACTORS ARE MUCH MORE @OPERATIONAL FACTORS THAN THOSE THAT ARE OFTEN PRESENTED IN THE LITERATURE 4HIS MIGHT BE CONSISTENT WITH THE PICTURE OF THE 3-% OWNERMANAGER THAT IS MUCH MORE CONCERNED WITH THE DAY TO DAY OPERATIONAL ACTIVITIES OF THE lRM THAN WITH LONG TERM STRATEGIC ISSUES )N THE PERCEPTION OF THESE RESPONDENTS STRATEGIC ALLIANCES SHOULD BE ABLE TO SOLVE OR IMPROVE SPECIlC OPERATIONAL ISSUES 3ECOND WHEN COMPARING THE LIST OF MOTIVES OF THE TWO TYPES OF ALLIANCES THE RESULTS CLEARLY SHOW THAT ALLIANCE MOTIVES DO DIFFER BETWEEN DIFFERENT FUNCTIONAL TYPES OF ALLIANCES 4HIS SUPPORTS PROPOSITION AND CONlRMS OUR SUGGESTION TO INCLUDE A MORE PRECISE SPECIlCATION OF THE COOPERATION TYPE STUDIED IN ACADEMIC RESEARCH
)MPORTANCE OF $IFFERENT !LLIANCE -OTIVES )N THE CONJOINT ANALYSIS STUDY THE SMALL BUSINESS #%/S HAD TO INDICATE IN WHICH CIRCUMSTANCES THEY WOULD PREFER TO ENTER INTO A STRATEGIC ALLIANCE 4HE ATTRIBUTES USED IN THE COMPUTER ADMINISTERED INTERVIEW ARE THE MOTIVES IDENTIlED DURING THE LITERATURE REVIEW AND THE INTERVIEWS SEE &IGURE %ACH ATTRIBUTE IS FURTHER SPLIT UP INTO DIFFERENT LEVELS !S THE 3-% MANAGERS INDICATED DURING THE INTERVIEW THAT THE KNOW HOW LOCATED WITHIN THE lRM COULD BE AN IMPORTANT REASON TO ENTER INTO A STRATEGIC PRODUCTION2$ ALLIANCE WE ALSO WANTED TO lND OUT IF STRATEGIC COOPERATION WAS PREFERRED IN A SITUATION OF SUFlCIENT OR INSUFlCIENT KNOW HOW WITHIN THE ENTERPRISE %ACH OF THE POSSIBLE MOTIVES WAS AS SUCH SPLIT UP INTO TWO OR THREE LEVELS AND SERVED AS INPUT FOR THE CONJOINT STUDY SEE 4ABLES AND lRST COLUMN
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)NTERNATIONAL 3MALL "USINESS *OURNAL 0RODUCTION4ECHNOLOGY 3TUDY . &)2 $IVERSITY IN PRODUCT GROUPS %DUCATION LEVEL PERSONNEL /CCUPATION MACHINES +NOW HOW 0RODUCTION LOCATION 0RODUCTION COSTS #OMPLEXITY OF TECHNOLOGY )NVESTMENT COSTS )NVESTMENT RISK %XPERIENCE OF PRODUCTION 2$ MANAGER ,IQUIDITY SITUATION
N
4/4!, &)2-
%.6)2/.-%.4).$53429 0OTENTIAL NUMBER OF SUPPLIERS OF RAW MATERIALS 0OTENTIAL NUMBER OF SUPPLIERS OF MACHINE 1UALITY REQUIREMENTS 3ALES EVOLUTION DURING YEAR )NNOVATION SPEED #OMPETITION 4HE NUMBER OF NEW ENTRANTS 3UPPLY OF SUBSTITUTE PRODUCTS %NTRY BARRIERS FOR A NEW MARKET %NVIRONMENTAL REGULATIONS 'OVERNMENT SUBSIDIES COOPERATION 4/4!, #/.4%84
0!24.%2
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2ELATIONSHIP WITH POTENTIAL PARTNER 3IZE OF POTENTIAL PARTNER 4YPE OF POTENTIAL PARTNER ,OCATION OF POTENTIAL PARTNER
4/4!, 0!24.%2
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-ARKETING$ISTRIBUTION 3TUDY . &)2 -ARKET DISTANCE -ARKET SHARE %DUCATION LEVEL PERSONNEL -ARKET KNOWLEDGE ,IFE CYCLE PRODUCTS -ARKETING COSTS $ISTRIBUTION COSTS 3ALES COST $IVERSITY IN PRODUCT GROUPS %XPERIENCE OF SALESMARKETING DISTRIBUTION MANAGER ,IQUIDITY SITUATION 4/4!, 3-%
N
%.6)2/.-%.4).$53429 0OTENTIAL NUMBER OF CLIENTS ,OYALTY OF CLIENTS 1UALITY OF REQUIREMENTS 3ALES EVOLUTION DURING YEAR 3ERVICE REQUIREMENTS #OMPETITION 4HE NUMBER OF NEW ENTRANTS 0OWER OF DISTRIBUTION SECTOR 3UPPLY OF SUBSTITUTE PRODUCTS %NTRY BARRIERS FOR A NEW MARKET %NVIRONMENTAL REGULATIONS 'OVERNMENT SUBSIDIES COOPERATION 4/4!, #/.4%84
0!24.%2 2ELATIONSHIP WITH POTENTIAL PARTNER 3IZE OF POTENTIAL PARTNER 4YPE OF POTENTIAL PARTNER ,OCATION OF POTENTIAL PARTNER 4/4!, 0!24.%2
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&IGURE -OTIVES 3ELECTED TO 3TART A 3TRATEGIC !LLIANCE
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#ORRELATION -ERGED 6ARIABLES .UMBER OF 5TILITY ,EVELS )NTERVIEW $URATION $IVERSITY IN PRODUCT GROUPS A -ANY DIFFERENT PRODUCT GROUPS B ! LIMITED AMOUNT OF PRODUCT GROUPS %DUCATION LEVEL PRODUCTION STAFF A 3UFlCIENTLY EDUCATED B )NSUFlCIENTLY EDUCATED 0OTENTIAL NUMBER OF SUPPLIERS OF RAW MATERIALS A ,IMITED AMOUNT OF SUPPLIERS B 3UFlCIENT NUMBER OF SUPPLIERS C %XCESSIVE SUPPLY POSSIBILITIES 1UALITY REQUIREMENTS A 3TABLE REQUIREMENTS B -ORE STRICT REQUIREMENTS 2ELATIONSHIP WITH POTENTIAL PARTNER lRM AND PARTNER A 0OTENTIAL PARTNER IS AN UNKNOWN 3-%nOWNER B 0OTENTIAL PARTNER IS A FRIEND C #OOPERATED BEFORE WITH POTENTIAL PARTNER /CCUPATION PRODUCTION MACHINES A 5NDERMANNED B 3UFlCIENT OCCUPATION C %XCESS OCCUPATION
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6AN 'ILS :WART !LLIANCE &ORMATION -OTIVES IN 3-%S
!VAILABLE KNOW HOW A 3UFlCIENT AVAILABLE KNOW HOW B )NSUFlCIENT KNOW HOW AVAILABLE 0RODUCTION LOCATION A ,IMITED TO HOME COUNTRY B 0RODUCTION IN HOME COUNTRY AND ABROAD 0OTENTIAL NUMBER OF SUPPLIERS OF MACHINES A ,IMITED AMOUNT OF SUPPLIERS B 3UFlCIENT NUMBER OF SUPPLIERS C %XCESSIVE SUPPLY POSSIBILITIES 0RODUCTION COSTS A ,OW TILL AVERAGE B (IGH 3ALES EVOLUTION DURING THE YEAR A %QUAL OVER THE YEAR B 3EASONAL mUCTUATIONS )NNOVATION SPEED A ,OW TILL AVERAGE B (IGH 3IZE OF THE POTENTIAL PARTNER A 4HE POTENTIAL PARTNER IS SMALLER B 4HE POTENTIAL PARTNER IS OF THE SAME SIZE C 4HE POTENTIAL PARTNER IS BIGGER #OMPETITIVE PRESSURE A ,OW TILL AVERAGE B (IGH
#ONSTRUCTION
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0OTENTIAL NUMBER OF NEW ENTRANTS A ! LIMITED AMOUNT B -ANY POTENTIAL ENTRANTS #OMPLEXITY OF TECHNOLOGY A #OMPLEX TECHNOLOGY B 3IMPLE TECHNOLOGY )NVESTMENT COSTS A ,OW TILL AVERAGE B (IGH 4YPE OF POTENTIAL PARTNER A 4HE POTENTIAL PARTNER IS ACTIVE IN ANOTHER SECTOR B THE POTENTIAL PARTNER IS A COMPETITOR C 4HE POTENTIAL PARTNER IS A CLIENT OR SUPPLIER )NVESTMENT RISK A ,OW TILL AVERAGE B (IGH %XPERIENCE OF THE PRODUCTION MANAGER A ,IMITED EXPERIENCE B -UCH EXPERIENCE 3UPPLY OF SUBSTITUTE PRODUCTS A -ANY SUBSTITUTE PRODUCTS B ,IMITED AMOUNT OF SUBSTITUTE PRODUCTS %NTRY BARRIERS FOR A NEW MARKET A ,IMITED ENTRY BARRIERS B -ANY ENTRY BARRIERS %NVIRONMENTAL REGULATIONS A -ORE STRICT B 3TABLE n
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,OCATION OF THE POTENTIAL PARTNER lRM A 4HE POTENTIAL PARTNER IS LOCATED IN THE SAME REGION B 4HE POTENTIAL PARTNER IS LOCATED IN THE SAME COUNTRY C 4HE POTENTIAL PARTNER IS LOCATED ABROAD ,IQUIDITY SITUATION OF THE lRM A 3UFlCIENT LIQUIDITY B )NSUFlCIENT LIQUIDITY 'OVERNMENT SUBSIDIES FOR COOPERATION A 3UBSIDIES POSSIBLE B .O SUBSIDIES FOR COOPERATION
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#ORRELATION -ERGED 6ARIABLES .UMBER OF 5TILITY ,EVELS )NTERVIEW $URATION -ARKET SHARE ON A SPECIlC MARKET A 3MALL MARKET SHARE B 3UFlCIENT MARKET SHARE %DUCATION LEVEL SALESMARKETING STAFF A 3UFlCIENTLY EDUCATED B )NSUFlCIENTLY EDUCATED 0OTENTIAL NUMBER OF CLIENTS A ,IMITED AMOUNT OF CLIENTS B 3UFlCIENT NUMBER OF CLIENTS C $EMAND GOES BEYOND SUPPLY 1UALITY REQUIREMENTS A 3TABLE REQUIREMENTS B -ORE STRICT REQUIREMENTS 2ELATIONSHIP WITH POTENTIAL PARTNER lRM AND PARTNER A 0OTENTIAL PARTNER IS AN UNKNOWN 3-% OWNER B 0OTENTIAL PARTNER IS A FRIEND C #OOPERATED BEFORE WITH POTENTIAL PARTNER -ARKET DISTANCE A 2EGIONAL B .ATIONAL C .ATIONAL AND )NTERNATIONAL
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6AN 'ILS :WART !LLIANCE &ORMATION -OTIVES IN 3-%S
!VAILABLE MARKET KNOWLEDGE A 3UFlCIENT MARKET KNOWLEDGE AVAILABLE B )NSUFlCIENT MARKET KNOWLEDGE AVAILABLE ,OYALTY OF CLIENTS A #LIENT LOYALTY IS LIMITED B (IGH CLIENT LOYALTY ,IFE CYCLE PRODUCTS A 3HORT LIFE CYCLE B ,ONG LIFE CYCLE $ISTRIBUTION COSTS A ,OW TILL AVERAGE B (IGH 3ALES EVOLUTION DURING THE YEAR A %QUAL OVER THE YEAR B 3EASONAL mUCTUATIONS 3ERVICE REQUIREMENTS A 3ERVICE IS OF LITTLE IMPORTANCE B 3ERVICE IS VERY IMPORTANT 3IZE OF THE POTENTIAL PARTNER A 4HE POTENTIAL PARTNER IS SMALLER B 4HE POTENTIAL PARTNER IS OF THE SAME SIZE C 4HE POTENTIAL PARTNER IS BIGGER #OMPETITIVE PRESSURE A ,OW TILL AVERAGE B (IGH
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-ARKETING COSTS A ,OW TO AVERAGE B (IGH 3ALES COSTS A ,OW TO AVERAGE B (IGH 4YPE OF POTENTIAL PARTNER A 4HE POTENTIAL PARTNER IS ACTIVE IN ANOTHER SECTOR B 4HE POTENTIAL PARTNER IS A COMPETITOR C 4HE POTENTIAL PARTNER IS A CLIENT OR SUPPLIER $IVERSITY IN PRODUCT GROUPS A -ANY DIFFERENT PRODUCT GROUPS B ! LIMITED AMOUNT OF PRODUCT GROUPS %XPERIENCE OF THE SALESMARKETINGDISTRIBUTION MANAGER A ,IMITED EXPERIENCE B -UCH EXPERIENCE 0OWER OF DISTRIBUTION SECTOR A 0OWER IS LIMITED B 0OWER IS VERY HIGH 3UPPLY OF SUBSTITUTE PRODUCTS A -ANY SUBSTITUTE PRODUCTS B ,IMITED AMOUNT OF SUBSTITUTE PRODUCTS %NTRY BARRIERS FOR A NEW MARKET A ,IMITED ENTRY BARRIERS B -ANY ENTRY BARRIERS
0OTENTIAL NUMBER OF NEW ENTRANTS A ! LIMITED AMOUNT B -ANY POTENTIAL ENTRANTS
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%NVIRONMENTAL REGULATIONS A -ORE STRICT B 3TABLE ,OCATION OF THE POTENTIAL PARTNER lRM A 4HE POTENTIAL PARTNER IS LOCATED IN THE SAME REGION B 4HE POTENTIAL PARTNER IS LOCATED IN THE SAME COUNTRY C 4HE POTENTIAL PARTNER IS LOCATED ABROAD ,IQUIDITY SITUATION OF THE lRM A 3UFlCIENT LIQUIDITY B )NSUFlCIENT LIQUIDITY 'OVERNMENT SUBSIDIES FOR COOPERATION A 3UBSIDIES POSSIBLE B .O SUBSIDIES FOR COOPERATION
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6AN 'ILS :WART !LLIANCE &ORMATION -OTIVES IN 3-%S "ASED ON THE ANSWER OF THE RESPONDENTS IN THE CONJOINT STUDY THE IMPORTANCE OF THE DIFFERENT ALLIANCE MOTIVES WAS CALCULATED FOR BOTH FUNCTIONAL AREA TYPES OF ALLIANCES 4HE UTILITY SCORES OF THE RESPONDENTS RESULTING FROM THE !#! PROGRAM WERE USED TO CALCULATE THE RELATIVE IMPORTANCE OF A SPECIlC ALLIANCE MOTIVE 4ABLE PRESENTS THE IMPORTANCE OF THE ALLIANCE MOTIVES FOR THE EIGHT RESPONDENTS THAT PARTICIPATED IN THE PRODUCTIONTECHNOLOGY STUDY 4ABLE CONTAINS THE RESULTS OF THE MARKETINGDISTRIBUTION STUDY FOR SIX RESPONDENTS )N ORDER TO HELP INTERPRET THE RESULTS THE FOLLOWING EXAMPLE IS DISCUSSED 3-% OWNER IN THE PRODUCTION TECHNOLOGY STUDY SEEMS TO BE MOSTLY MOTIVATED TO ENTER INTO A PRODUCTIONTECHNOLOGY ALLIANCE WHEN QUALITY REQUIREMENTS CHANGE MOTIVE IMPORTANCE OUT OF -OREOVER THE AVAILABILITY OF A LIMITED NUMBER OF SUBSTITUTE PRODUCTS MOTIVE IMPORTANCE A POOR LIQUIDITY SITUATION MOTIVE IMPORTANCE OR HIGH INVESTMENT COSTS MOTIVE IMPORTANCE COULD RESULT IN ALLIANCE FORMATION 3EVERAL OTHER FACTORS ARE INDICATED AS BEING LESS IMPORTANT 4HE RESULTS FOR THE EIGHT RESPONDENTS IN THE PRODUCTIONTECHNOLOGY STUDY INDICATE THAT PRODUCTION COSTS THE OCCUPATION OF THE MACHINE PARK THE LEVEL OF AVAILABLE KNOWLEDGE GOVERNMENTAL REGULATIONS AND RELATIONSHIP SIZE AND TYPE OF THE POTENTIAL PARTNER ARE THE IMPORTANT DRIVERS TOWARDS 3-% ALLIANCE FORMATION WITHIN THIS FUNCTIONAL AREA 4HE #%/S OPERATING IN THE DIFFERENT MANUFACTURING SECTORS ALL INDICATE THAT HIGH PRODUCTION COSTS LOW TO AVERAGE INVESTMENT COSTS AND STRICTER ENVIRONMENTAL REGULATIONS WOULD BE IMPORTANT STIMULATORS TO CONSIDER COOPERATIVE AGREEMENTS -OREOVER THEY ALL SEEM TO PREFER AN ALLIANCE WITH A POTENTIAL PARTNER THEY HAVE COOPERATED WITH BEFORE 4HEY DIFFER IN THEIR PREFERENCES IN RELATION TO THE TYPE SIZE AND LOCATION OF THE PARTNER 4HE TWO RESPONDENTS FROM THE FOOD AND CONSTRUCTION INDUSTRY ENGAGE IN COOPERATIVE AGREEMENTS WHEN THEY POSSESS INSUFlCIENT LIQUIDITY THEMSELVES WHEREAS THE RESPONDENTS OF THE METAL INDUSTRY ONLY CONSIDER THESE AGREEMENTS WHEN THEY HAVE SUFlCIENT LIQUIDITY )N THE CONSTRUCTION INDUSTRY UNDERMANNED OCCUPATION OF THE MACHINE PARK IS A STIMULATOR WHEREAS DIVERGENT OPINIONS EXIST ON THIS ISSUE IN THE METAL INDUSTRY &OR THE MARKETINGDISTRIBUTION ALLIANCES MARKET DISTANCE AND THE LOCATION TYPE AND RELATIONSHIP WITH A POTENTIAL PARTNER ARE DOMINANT DRIVERS !LLIANCES SEEM TO BE A PREFERRED ENTRY OPTION FOR INTERNATIONAL MARKETS IN WHICH THE 3-% HAS A LIMITED MARKET SHARE SO FAR !S A RESULT THEY PREFER A FOREIGN COMPETITOR CLIENT OR SUPPLIER TO COOPERATE WITH (OWEVER IN ORDER TO AVOID CULTURAL PROBLEMS THEY OPT FOR A PARTNER WITH WHOM THEY HAVE DEVELOPED A FRIENDSHIP RELATION OR WHOM THEY HAVE COOPERATED WITH BEFORE )N &IGURES AND THE RESULTS ARE SUMMARIZED FOR THE lRM ENVIRONMENT AND PARTNER LEVEL TO ILLUSTRATE THE IMPORTANCE OF THE DIFFERENT LEVELS OF ALLIANCE MOTIVES &OR RESPONDENT THESE RESULTS INDICATE THAT A COMBINATION OF lRM INDUSTRY AND PARTNER RELATED MOTIVES WOULD STIMULATE HIM TO SET UP A STRATEGIC PRODUCTION TECHNOLOGY ALLIANCE (OWEVER THE INmUENCE OF ENVIRONMENTAL INDUSTRY MOTIVES AND ORGANIZATIONAL CHARACTERISTICS WOULD BE MUCH LARGER THAN THOSE RELATED TO THE AVAILABILITY OF AN ACCEPTABLE PARTNER )N A SIMILAR WAY RESULTS FOR ALL THE OTHER RESPONDENTS HAVE TO BE INTERPRETED ! GLOBAL OVERVIEW OF THE RESULTS FOR THE DIFFERENT RESPONDENTS IS INCLUDED IN 4ABLE
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&IGURE 2ELATIVE )MPORTANCE IN OF $IFFERENT -OTIVES IN THE 3TART UP OF A 3TRATEGIC !LLIANCE IN THE 0RODUCTION4ECHNOLOGY $OMAIN CASES
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'OVERNMENT SUBSIDIES COOPERATION
4/4!, #/.4%84
%NVIRONMENTAL REGULATIONS
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%NTRY BARRIERS FOR A NEW MARKET
3UPPLY OF SUBSTITUTE PRODUCTS
4HE NUMBER OF NEW MARKET
#OMPETITION
)NNOVATION SPEED
3ALES EVOLUTION DURING YEAR
1UALITY REQUIREMENTS
0OTENTIAL NUMBER OF SUPPLIERS OF MACHINE
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4YPE OF POTENTIAL PARTNER
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3IZE OF POTENTIAL PARTNER
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2ELATIONSHIP WITH POTENTIAL PARTNER
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%DUCATION LEVEL PERSONNEL
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)NTERNATIONAL 3MALL "USINESS *OURNAL
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6AN 'ILS :WART !LLIANCE &ORMATION -OTIVES IN 3-%S 7ITH THE EXCEPTION OF THREE SMALL BUSINESS OWNERS ALL RESPONDENTS INDICATED THAT A COMBINATION OF lRM ENVIRONMENTAL AND PARTNER RELATED MOTIVES WOULD STIMULATE THEM TO OPT FOR A SPECIlC TYPE OF STRATEGIC ALLIANCE 4HESE RESULTS SUGGEST CONlRMATION FOR PROPOSITION 4HE RESEARCH lNDINGS IN 4ABLE ILLUSTRATE THAT THE IMPORTANCE OF DIFFERENT LEVELS OF ALLIANCE MOTIVES VARIES ACCORDING TO THE FUNCTIONAL AREA TYPE OF ALLIANCE THE 3-% WANTS TO ENGAGE IN )NTERNAL lRM MOTIVES ARE FAR MORE IMPORTANT WITHIN THE PRODUCTIONTECHNOLOGY STUDY THAN WITHIN THE MARKETINGDISTRIBUTION STUDY 7ITHIN THE MARKETINGDISTRIBUTION STUDY THE 3-% RESPONDENTS PUT MORE EMPHASIS ON EXTERNAL MOTIVES !LTHOUGH THE NUMBER OF RESPONDENTS IS LIMITED THIS DATA SET SEEMS TO SUPPORT PROPOSITION 4O BE ABLE TO DISCUSS THE RESEARCH RESULTS IN RELATION TO PROPOSITIONS AND 4ABLE HAS TO BE ANALYSED IN FURTHER DETAIL AS INDUSTRY TYPE AND THE CHARACTERISTICS OF THE SMALL BUSINESS OWNERS ARE DESCRIBED THERE "ASED ON THE ANALYSIS OF THE RESEARCH RESULTS IN THE DIFFERENT INDUSTRIES SOME PRELIMINARY CONCLUSIONS CAN BE MADE 4HE IMPORTANCE OF INTERNAL ALLIANCE MOTIVES IS ABOVE AVERAGE FOR THE RESPONDENTS FROM THE METAL INDUSTRY HAVING PARTICIPATED IN THE PRODUCTIONTECHNOLOGY STUDY 4HE IMPORTANCE OF PARTNER CHARACTERISTICS IS ABOVE AVERAGE FOR THE RESPONDENTS FROM THE CONSTRUCTION INDUSTRY WITHIN THE MARKETINGSALES STUDY 4HESE RESULTS SUGGEST SUPPORT FOR PROPOSITION INDICATING THAT WITHIN A SPECIlC FUNCTIONAL ALLIANCE TYPE ALLIANCE FORMATION MOTIVES WILL DIFFER ACCORDING TO THE INDUSTRY THE 3-% IS OPERATING IN !S INSUFlCIENT VARIANCE EXISTS AMONG THE AGES OF THE RESPONDENTS NO CONCLUSIONS WILL BE DRAWN IN RELATION TO THE EFFECT OF THIS CHARACTERISTIC ON ALLIANCE FORMATION 4HE NUMBER OF YEARS OF EXPERIENCE IN THE #%/ FUNCTION WAS SELECTED AS A VARIABLE TO EXAMINE THE EFFECT OF WORKING EXPERIENCE 4HE RESULTS REVEAL THAT THOSE RESPONDENTS THAT HAVE LESS EXPERIENCE AS A #%/ ARE MORE OFTEN STIMULATED TO ENTER INTO AN ALLIANCE BY INTERNAL lRM LEVEL MOTIVES 4HE EDUCATION LEVEL OF THE RESPONDENTS IN THE SAMPLE IS CORRELATED TO THE EXPERIENCE LEVEL OF THE OWNERS n HIGHER LEVER OF EDUCATION IS RELATED TO LESS EXPERIENCE n SO NO CONCLUSIONS CAN BE MADE FOR THIS CHARACTERISTIC 4HEREFORE WE SUGGEST THAT PROPOSITION IS PARTLY SUPPORTED 4HE RESULTS OF THIS EXPLORATIVE STUDY SUGGEST THAT WITHIN A SPECIlC FUNCTIONAL ALLIANCE TYPE ALLIANCE FORMATION MOTIVES WILL DIFFER ACCORDING TO THE #%/ EXPERIENCE OF THE SMALL BUSINESS OWNER
$ISCUSSION 4HE GOAL OF THIS EXPLORATIVE STUDY IS TO INVESTIGATE THE IMPORTANCE OF DIFFERENT LEVELS OF ALLIANCE FORMATION MOTIVES IN 3-%S -OREOVER THE EFFECT OF ALLIANCE TYPE INDUSTRY AND PERSONAL CHARACTERISTICS IS EXAMINED 4HE RESULTS OF THIS STUDY CONlRM THE NEED TO INVESTIGATE THE IMPORTANCE OF ALLIANCE FORMATION MOTIVES AT DIFFERENT LEVELS &OR ALL THE SMALL BUSINESS OWNERS IN THE CONJOINT STUDY ALLIANCE FORMATION IS DETERMINED BY A COMBINATION OF ORGANIZATIONAL PARTNER RELATED ANDOR INDUSTRY RELATED MOTIVES 4HIS RESULT CONlRMS EARLIER RESEARCH CONCLUSIONS !USTER 0ARK ET AL STIPULATING THE NEED TO STUDY THE COMBIN ATION OF DIFFERENT LEVELS OF ALLIANCE MOTIVES -OTIVES USED WITHIN THIS STUDY ARE RELATED TO DIFFERENT THEORETICAL PERSPECTIVES RESOURCE DEPENDENCE RESOURCE BASED TRANSACTION COST AND NETWORK THEORY 4HE RESULTS ILLUSTRATE THE NEED FOR A BALANCED THEORETICAL PLURALISM IN RESEARCH ON ALLIANCE FORMATION IN 3-%S 2ATHER THAN STRIVE
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)NTERNATIONAL 3MALL "USINESS *OURNAL FOR ONE BEST THEORY TO CAPTURE THIS PHENOMENON RESEARCHERS SHOULD EXAMINE WHERE THESE PARADIGMS COMPLEMENT AND CROSS FERTILIZE EACH OTHER %ACH OF THE MOTIVES ADDED BY THESE DIFFERENT THEORIES HAS ITS VALUE IN EXPLAINING ALLIANCE FORMATION IN 3-%S AND SHOULD THEREFORE NOT BE STUDIED IN ISOLATION FROM THE OTHER FACTORS &URTHERMORE THE STUDY HIGHLIGHTS THE IMPORTANCE OF TAKING INTO ACCOUNT THE DIFFERENCES IN ALLIANCE TYPES 2ESULTS OF THE PRODUCTIONTECHNOLOGY AND MARKETING DISTRIBUTION STUDY INDICATE THAT DIFFERENT MOTIVATIONS ARE AT THE BASIS OF DIFFERENT FUNCTIONAL AREA ALLIANCES )N THE PRODUCTIONTECHNOLOGY STUDY RESPONDENTS AGREE ON THE FACT THAT HIGH PRODUCTION COSTS LOW INVESTMENT COSTS AND STRICTER ENVIRONMENTAL REGULATIONS ARE IMPORTANT STIMULI TOWARDS STRATEGIC COOPERATION !S ILLUSTRATED IN EARLIER RESEARCH 4HOUMRUNGROJE AND 4ANSUHAJ MARKETINGDISTRIBUTION ALLI ANCES ARE PERCEIVED AS TOOLS TO GAIN MARKET SHARE IN A FOREIGN MARKET )N BOTH CONJOINT STUDIES THE PARTNER CHARACTERISTICS WERE OFTEN SELECTED ALTHOUGH DIFFERENCES EXIST IN RELATION TO THE IMPORTANCE GIVEN TO THE SPECIlC MOTIVES -OST 3-% MANAGERS AGREE THAT IT WOULD BE IDEAL TO COOPERATE WITH A PARTNER THEY KNOW FROM EARLIER COOPERATIVE AGREEMENTS (OWEVER IN THE MARKETINGDISTRIBUTION STUDY THE LOCATION OF THE POTENTIAL PARTNER IS MORE IMPORTANT WHEREAS IN THE PRODUCTIONTECHNOLOGY STUDY THE TYPE AND SIZE OF THE POTENTIAL PARTNER HAS A LARGER INmUENCE ON THE COOPERATION DECISION 2ESULTS ALSO SEEM TO CONlRM THE INmUENCE THE SECTOR OF INDUSTRY AND #%/ CHARACTERISTICS CAN HAVE ON THE FORMATION OF SPECIlC FUNCTIONAL AREA ALLIANCES SEE ALSO (AGEDOORN 4YLER AND 3TEENSMA 4HE CONCLUSION THAT ESPECIALLY THOSE 3-% OWNERS THAT HAVE LITTLE EXPERIENCE AS A #%/ ARE MOSTLY MOTIVATED BY INTERNAL lRM CHARACTERISTICS TO ENGAGE IN AN ALLIANCE IS IMPORTANT TO REMEMBER FOR ORGANIZATIONS TRYING TO STIMULATE COOPERATIVE BEHAVIOUR AMONG 3-%S )N COMPARISON TO THE STUDIES CITED IN 4ABLE OUR STUDY ADDS TO THE ACADEMIC KNOWLEDGE IN THIS lELD BY STRESSING THE IMPORTANCE OF ALLIANCE MOTIVES AT DIFFERENT LEVELS ORGANIZATION INDUSTRY AND PARTNER &UTURE ALLIANCE FORMATION RESEARCH SHOULD FOCUS ON UNDERSTANDING IN MORE DETAIL THE DIFFERENT MOTIVES LEADING TO THE START UP OF DIFFERENT TYPES OF COOPERATIVE AGREEMENTS -OREOVER AS 3-% OWNERS IN THE SAME SECTORS SEEM TO BE MOTIVATED BY SEEMINGLY OPPOSING REASONS TO ENTER INTO AN ALLIANCE FOR INSTANCE SUFlCIENT VERSUS INSUFlCIENT KNOW HOW AVAILABLE ACADEMIC RESEARCH MIGHT BENElT FROM STUDIES EXPLORING TO A LARGER EXTENT THE INmUENCE OF THE ENTREPRENEURS PERSONALITY CHARACTERISTICS ON ALLIANCE FORMATION 3-% OWNERS CONSIDERING ENGAGING IN ALLIANCES ARE ADVISED TO CAREFULLY ANALYSE THEIR INTERNAL AND EXTERNAL ENVIRONMENT AS WELL AS THE POTENTIAL PARTNERS CHARACTERISTICS 3EVERAL RESPONDENTS INDICATED TO HAVE UNDERESTIMATED THE IMPORTANCE OF THE POTENTIAL PARTNERS CHARACTERISTICS AND REPORTED TO HAVE NEGATIVE COOPERATION EXPERIENCES IN FOREIGN MARKETS &ROM OUR EXPLORATIVE CONCLUSIONS POLICY MAKERS SHOULD REMEMBER THAT COOPERATION IN 3-%S CAN BE STIMULATED IN DIFFERENT WAYS 4HEY CAN TRY TO INmUENCE THE INDIVIDUAL BUSINESS OWNER THE lRM CONTEXT THE INDUSTRY OR THE NETWORK ENVIRONMENT OF SMALLER lRMS )MPORTANT TO INVESTIGATE IS HOW DIFFERENT STIMULI WILL AFFECT THE FORMATION OF DIFFERENT TYPES OF ALLIANCES )N RELATION TO THE METHODOLOGY USED FOR THIS PROJECT THIS STUDY INDICATES THAT THE CONJOINT METHOD IS A VERY PROMISING WAY TO ANALYSE SMALL BUSINESS OWNERS STRATEGIC DECISION MAKING PROCESS 4HE !#! PROCESS FACILITATES THE PROCESS TO ESTIMATE THE
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6AN 'ILS :WART !LLIANCE &ORMATION -OTIVES IN 3-%S IMPORTANCE OF A LARGE NUMBER OF ALLIANCE MOTIVES (OWEVER RESEARCHERS WILL HAVE TO DEAL WITH THE CONJOINT ANALYSIS PROBLEMS OF REALISM DESIGN AND RELIABILITY !IMAN 3MITH ET AL +ARREN AND "ARRINGER )N THIS STUDY THE REALISM PROBLEM WAS DEALT WITH BY lRST HAVING INTERVIEWS WITH THE #%/S IN ORDER TO INVESTIGATE THEIR ALLIANCE MOTIVATIONS ! DESIGN ISSUE THAT MIGHT HAVE INmUENCED THE RESEARCH RESULTS IS THAT SOME MOTIVATIONS HAVE THREE LEVELS WHILE OTHERS ONLY TWO !LTHOUGH NOT ALL MOTIVATIONS WITH THREE LEVELS ARE SELECTED AS VERY IMPORTANT BY THE RESPONDENTS THE IMPORTANCE OF DIFFERENT KINDS OF PARTNER CHARACTERISTICS WHICH ALL HAVE THREE LEVELS MIGHT BE SOMEWHAT OVERESTIMATED !S THE STUDY IS EXPLORATIVE IN NATURE NO RELIABILITY AND VALIDITY TESTS ARE USED !DDITIONAL RESEARCH USING LARGER SAMPLES IS REQUIRED 2ESULTS FROM LARGER SAMPLES CAN HELP US TO DETECT CLUSTERS OF RESPONDENTS WITH MORE OR LESS THE SAME ATTITUDE VERSUS ALLIANCE FORMATION 4HE RESULTS OF THIS STUDY SUPPORT OR PARTIALLY SUPPORT ALL OUR PROPOSITIONS AND THEREFORE CAN BE USED TO TEST ALLIANCE FORMATION MOTIVES IN LARGER SAMPLES 3EVERAL EXTENSIONS OF THIS RESEARCH PROJECT APPEAR WORTH EXPLORING IN FUTURE WORK &IRST THIS STUDY ONLY FOCUSES ON TWO TYPES OF ALLIANCES !S NO NUMBERS ARE AVAILABLE IN RELATION TO THE FREQUENCY OF OCCURRENCE OF DIFFERENT ALLIANCE TYPES IN AN 3-% CONTEXT OTHER TYPES OF ALLIANCES SUCH AS SOURCING AGREEMENTS OR LICENSING MIGHT BE IMPORTANT AS WELL -OTIVATIONS FOR THESE TYPES OF ALLIANCES NEED FURTHER INVESTIGATION -OREOVER IT COULD BE WORTHWHILE TO EXAMINE IF MOTIVES DIFFER FOR ALLIANCE TYPES IN WHICH EQUITY STAKES ARE TAKEN VERSUS NON EQUITY ARRANGEMENTS "ESIDES ONE COULD BROADEN THE RESEARCH POPULATION BY INCLUDING SERVICE lRMS IN THE SAMPLE 4HIS SECTOR IS BECOMING INCREASINGLY IMPORTANT IN TODAYS SOCIETY AND KNOWLEDGE IS ONE OF THEIR IMPORTANT ASSETS &URTHER RESEARCH WITHIN LARGER SAMPLES COULD ADDITIONALLY CHECK FOR THE EFFECTS OF FAMILY INmUENCE AND ALLIANCE EXPERIENCE 3O FAR ONLY ONE CONCEPTUAL PAPER DISCUSSES THE INmUENCE OF THE FAMILY ON THE START UP OF ALLIANCES 2OESSL WHILE FAMILY BUSINESS STUDIES HAVE EMPHASIZED THE IMPORTANCE OF ADDING THE FAMILY VARIABLE TO ORGANIZATIONAL RESEARCH $YER -OREOVER ONLY 0ARK ET AL AND ,OHRKE ET AL HAVE SO FAR INVESTIGATED THE EFFECT OF PREVIOUS ALLIANCE EXPERIENCE 2ESEARCHERS COULD FURTHER INVESTIGATE THE 3-%S EXPERIENCE IN DIFFERENT FUNCTIONAL TYPES OF ALLIANCES AND WITH DIFFERENT TYPES OF PARTNERS &URTHERMORE CONJOINT STUDIES ON LARGER INTERNATIONAL SAMPLES WILL BENE lT FROM INCLUDING THE INSTITUTIONAL LEVEL IN THEIR RESEARCH DESIGN AS DIFFERENT AUTHORS $ANA 3TEENSMA ET AL A B HAVE INDICATED THE POTENTIAL INmUENCE OF FACTORS AS CULTURE AND BELIEFS &INALLY ONCE THE MOTIVES OF THE 3-%S ARE KNOWN IN RELATION TO THEIR COOPERATIVE AGREEMENTS IT WOULD BE WORTHWHILE TO STUDY THE PER FORMANCE OF THESE ALLIANCES )N THIS WAY ONE COULD STUDY SUCCESSFUL COOPERATIVE AGREE MENTS AMONGST 3-%S AND USE THIS INFORMATION FOR EDUCATION AND POLICY PURPOSES
.OTES !LTHOUGH PSYCHOLOGICAL CHARACTERISTICS OF THE #%/ COULD ALSO HAVE AN IMPACT ON ALLIANCE FORMATION IN 3-%S THIS STUDY SOLELY FOCUSES ON FACTORS DISCUSSED WITHIN UPPER ECHELON THEORY 4HEREFORE WE USE THE FACTORS AGE EXPERIENCE IN INDUSTRY AND IN FUNCTION AND EDUCATION LEVEL 4HE PRODUCTION2$ STUDY CONSISTED OF MOTIVES THE SALESDISTRIBUTION STUDY OF
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)NTERNATIONAL 3MALL "USINESS *OURNAL %ACH RESPONDENT ONLY IDENTIlED THE MOTIVES FOR THE TYPE OF ALLIANCE HE WOULD PREFER TO ENGAGE IN 4HE FACT THAT FEWER PARTNER CHARACTERISTICS ARE INCLUDED IN THE CONJOINT ANALYSIS STUDY THAN lRM OR ENVIRONMENTAL LEVEL MOTIVES HAS NO EFFECT ON THE lNAL RESULTS OF THIS STUDY AS THE RESPONDENTS WILL BE ABLE TO ATTRIBUTE IMPORTANCE TO ALL OF THE MOTIVES INCLUDED IN THE STUDY !S THE SUM OF ALL UTILITIES PER RESPONDENT EQUALS PERCENTAGES CAN BE CALCULATED FOR EACH ALLIANCE MOTIVE SELECTED BY THE RESPONDENT INDICATING THE RELATIVE IMPORTANCE OF THIS FACTOR &IVE RESPONDENTS WERE WITHDRAWN FROM THE SAMPLE BECAUSE OF THEIR LOW CORRELATION COEFlCIENTS !LTHOUGH THESE COEFlCIENTS ONLY TELL US SOMETHING ABOUT THE INCONSISTENCIES IN THE ANSWERS OF PART lVE OF THE INTERVIEW ALL ANSWERS WERE OMITTED FROM FURTHER ANALYSIS .O CORRELATIONS WERE FOUND BETWEEN A LOW CORRELATION FACTOR AND THE NUMBER OF FACTORS SELECTED IN THE lRST STAGE OF THE INTERVIEW THE INTERVIEW TIME AND THE NUMBER OF PAIRS PRESENTED IN THE PAIRED COMPARISON TRADE OFF SECTION 3-% OWNERS AND IN THE PRODUCTIONTECHNOLOGY SECTOR AND 3-% OWNER IN THE MARKETINGDISTRIBUTION STUDY DID ONLY SELECT TWO DIFFERENT LEVELS OF ALLIANCE MOTIVES
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