The Effect of Strategic Technology Alliances on Company Performance

Posted: 17 Nov 2009

See all articles by John Hagedoorn

John Hagedoorn

Maastricht University, School of Business and Economics

Jos Schakenraad

affiliation not provided to SSRN

Date Written: 1994

Abstract

Explores the effect of strategic technology partnerships on the profitability of the firms involved in such partnerships. A path model is developed that identifies the direct effects of each factor on the other factors. Five factor groups are considered: sectoral features, national circumstances, company structure, innovativeness, and external linkages. Focus is on 346 companies located in Europe, the United States, and Japan that are in the information technologies and electronics sector, the mechanical engineering field, or the process industry. Data is gathered for this analysis through a process termed "literature-based alliance counting," which involved using various newspaper and journal articles in addition to data from the Cooperative Agreements and Technology Indicators (CATI) information system. Results show that firms that are patent-intensive are extremely involved in strategic partnering. Of the three industries examined, information technology showed the greatest cooperation intensity while process industries were the lowest. U.S. firms were less likely to cooperate strategically than the European and Japanese firms considered. Firm size was shown to impact the decision to pursue strategic partnerships. The larger the firm, the more likely that firm is to associate with other firms. No support for the proposition that size affects profitability was shown. (SRD)

Keywords: Mechanical engineering, Profitability, Earnings, Joint ventures, Information & communication technologies, Firm size, Patent productivity, Electronics industry, Firm performance, Strategic alliances, Interfirm alliances

Suggested Citation

Hagedoorn, John and Schakenraad, Jos, The Effect of Strategic Technology Alliances on Company Performance (1994). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1505876

John Hagedoorn

Maastricht University, School of Business and Economics ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands

Jos Schakenraad

affiliation not provided to SSRN

No Address Available

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