|
Firm Partnerships and Alliances: The Impact of Partnering Relationships on Operating Risk and Performance
Carolyn M Callahan, University of Arkansas - Fayetteville
E. Ann Gabriel, Ohio University
Rodney E. Smith, University of California at Long Beach
ABSTRACT. Using a control group experimental design, we examine the operating risk and subsequent operating and market performance impact of both alliances and major customer relationships for 291 high-tech manufacturing firms that reported major customer relationships in accordance with FAS 14 (superseded by FAS 131 in 1997) over the period 1990 to 2002. Although managers suggest that major reasons to enter into partnerships or alliances are to reduce operating risk and increase subsequent performance, our paper is the first (to our knowledge) to directly examine this conjecture. In contrast to expressed managers’ expectations, we employ several proxies for operating risk and find that risk generally increased during major customer relationships and research alliances while operating performance decreases during research alliances as well as after major customer relationships.
Full-Text is no longer available online. Please contact the author(s) for more information about this manuscript.
Back to Session Listing
|