Strategic change and termination of interfirm partnerships
Version of Record online: 4 AUG 2010
Copyright © 2010 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 32, Issue 4, pages 402–423, April 2011
How to Cite
Cui, A. S., Calantone, R. J. and Griffith, D. A. (2011), Strategic change and termination of interfirm partnerships. Strat. Mgmt. J., 32: 402–423. doi: 10.1002/smj.881
- Issue online: 9 FEB 2011
- Version of Record online: 4 AUG 2010
- Accepted manuscript online: 4 AUG 2010 12:00AM EST
- Manuscript Revised: 31 JUL 2010
- Manuscript Received: 11 JAN 2008
- joint venture;
- strategic change;
- resource value
An evolutionary perspective of the resource-based view is adopted to understand how changes in a partner firm's overall strategy may influence the firm's interfirm partnerships over time. We contend that changes in a partner firm's overall resource deployment strategy and partnering strategy influence the value and uniqueness of partnership resources. These changes alter the competitive advantage associated with partnership resources, affecting the propensity of partnership termination. An event history analysis is employed with 150 joint ventures over the period 1990 to 2001 to examine partnership termination within a longitudinal dataset. With initial partnership conditions controlled for, the results indicate significant influences of various changes in partner firm overall resource deployment strategy and partnering strategy on the propensity of termination. Further, competitor imitative activities are found to increase the propensity of termination as they reduce the uniqueness of partnership resources. This study provides support for an evolutionary perspective of resource value and competitive advantage that incorporates strategic change over time. Copyright © 2010 John Wiley & Sons, Ltd.