Analysis of Alliances based on Firm’s Organizational Structure

Abstract

We have analyzed alliances from the viewpoints how their forms are influenced by firm’s organizational structure. Using the outcomes from resource-based theory and social exchange theory, forms of alliances are categorized by (1) relationships of management resources to be exchanged, (2) relationships of partners to exchange, and (3) alliance structures which characterize such exchange. Firm’s organizational structures are also categorized by range of their own function, scope of their business, and location of their incorporation. Propositions are created to explain how firm’s organizational structure determines their selection of alliance forms, and they are validated using empirical cases in the semiconductor industry. Following three propositions are validated: “Firms with specific function, compared to firms with all function, tend to select asymmetrical alliances rather than symmetrical alliances.”, “Firms with diversified business, compared to firms with dedicated business, tend to select horizontal alliances rather than vertical alliances.”, “Firms in Asia, compared to firms in U.S. and Europe, tend to select non-equity alliances rather than equity alliances.”