Dangers of dependence: The impact of strategic alliance use by small technology-based firms

This study examines the use of strategic alliances by small technology-based firms. These firms, who have innovative ideas and products but often lack the resources and experience to fully capitalize on them in a timely fashion, are ideal candidates for alliance arrangements. It is argued, however,...

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Bibliographic Details
Published in:Journal of small business management 1999-04, Vol.37 (2), p.20
Main Authors: Miles, Grant, Preece, Stephen B, Baetz, Mark C
Format: Article
Language:English
Subjects:
Alliances
Dependence
High tech industries
Hypotheses
Impact analysis
Market penetration
Regression analysis
Small business
Studies
Success
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Summary:This study examines the use of strategic alliances by small technology-based firms. These firms, who have innovative ideas and products but often lack the resources and experience to fully capitalize on them in a timely fashion, are ideal candidates for alliance arrangements. It is argued, however, that firms who rely on alliances, as opposed to those who choose them as one option among several alternatives, may put themselves in a dependent position from which they cannot fully capture their share of the gains from alliance relationships. Results indicate that while most small technology firms utilize alliances, dependence on alliances is associated with poorer performance. Implications of these findings are discussed for both research and practice.
ISSN:0047-2778
1540-627X