Interfirm distances as channels for external resources: The choice between alliances and mergers & acquisitions

Haibin Yang; Zhiang (John) Lin

Interfirm distances as channels for external resources: The choice between alliances and mergers & acquisitions

Haibin Yang
, Zhiang (John) Lin

Research output: Chapters, Conference Papers, Creative and Literary Works › RGC 32 - Refereed conference paper (with host publication) › peer-review

1 Citation (Scopus)

Abstract

This study develops an external resource perspective to examine firms' resource acquisition through the lens of organizational distances. The dyadic approach reveals the different mechanisms for resource combination between firms through either alliances or M&A. Specifically, this research explores the roles of strategic distance, technical distance and structural distance in firms' strategic choices of different governance modes. The study argues that firms are more likely to use alliances to access external resources under a large strategic distance, while there is a U-shaped relationship between technical distance and firms' governance choice. A large structural distance also motivates firms to choose alliances over acquisitions. We find support for the majority of our arguments by examining alliances and acquisitions in the U.S. computer industry over a nine-year span.

Original language	English
Title of host publication	Academy of Management 2005 Annual Meeting: A New Vision of Management in the 21st Century, AOM 2005
Publication status	Published - 2005
Externally published	Yes
Event	65th Annual Meeting of the Academy of Management (AOM 2005): A New Vision of Management in the 21st Century - Honolulu, United States Duration: 5 Aug 2005 → 10 Aug 2005

Conference

Conference	65th Annual Meeting of the Academy of Management (AOM 2005)
Abbreviated title	2005 AOM Annual Meeting
Place	United States
City	Honolulu
Period	5/08/05 → 10/08/05

Research Keywords

Alliances
Interfirm distances
Mergers & acquisitions

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title = "Interfirm distances as channels for external resources: The choice between alliances and mergers \& acquisitions",

abstract = "This study develops an external resource perspective to examine firms' resource acquisition through the lens of organizational distances. The dyadic approach reveals the different mechanisms for resource combination between firms through either alliances or M\&A. Specifically, this research explores the roles of strategic distance, technical distance and structural distance in firms' strategic choices of different governance modes. The study argues that firms are more likely to use alliances to access external resources under a large strategic distance, while there is a U-shaped relationship between technical distance and firms' governance choice. A large structural distance also motivates firms to choose alliances over acquisitions. We find support for the majority of our arguments by examining alliances and acquisitions in the U.S. computer industry over a nine-year span.",

keywords = "Alliances, Interfirm distances, Mergers \& acquisitions",

author = "Haibin Yang and Lin, \{Zhiang (John)\}",

year = "2005",

language = "English",

booktitle = "Academy of Management 2005 Annual Meeting: A New Vision of Management in the 21st Century, AOM 2005",

note = "65th Annual Meeting of the Academy of Management (AOM 2005) : A New Vision of Management in the 21st Century, 2005 AOM Annual Meeting ; Conference date: 05-08-2005 Through 10-08-2005",

}

Interfirm distances as channels for external resources: The choice between alliances and mergers & acquisitions. / Yang, Haibin; Lin, Zhiang (John).
Academy of Management 2005 Annual Meeting: A New Vision of Management in the 21st Century, AOM 2005. 2005.

Research output: Chapters, Conference Papers, Creative and Literary Works › RGC 32 - Refereed conference paper (with host publication) › peer-review

TY - GEN

T1 - Interfirm distances as channels for external resources

T2 - 65th Annual Meeting of the Academy of Management (AOM 2005)

AU - Yang, Haibin

AU - Lin, Zhiang (John)

PY - 2005

Y1 - 2005

N2 - This study develops an external resource perspective to examine firms' resource acquisition through the lens of organizational distances. The dyadic approach reveals the different mechanisms for resource combination between firms through either alliances or M&A. Specifically, this research explores the roles of strategic distance, technical distance and structural distance in firms' strategic choices of different governance modes. The study argues that firms are more likely to use alliances to access external resources under a large strategic distance, while there is a U-shaped relationship between technical distance and firms' governance choice. A large structural distance also motivates firms to choose alliances over acquisitions. We find support for the majority of our arguments by examining alliances and acquisitions in the U.S. computer industry over a nine-year span.

AB - This study develops an external resource perspective to examine firms' resource acquisition through the lens of organizational distances. The dyadic approach reveals the different mechanisms for resource combination between firms through either alliances or M&A. Specifically, this research explores the roles of strategic distance, technical distance and structural distance in firms' strategic choices of different governance modes. The study argues that firms are more likely to use alliances to access external resources under a large strategic distance, while there is a U-shaped relationship between technical distance and firms' governance choice. A large structural distance also motivates firms to choose alliances over acquisitions. We find support for the majority of our arguments by examining alliances and acquisitions in the U.S. computer industry over a nine-year span.

KW - Alliances

KW - Interfirm distances

KW - Mergers & acquisitions

UR - https://www.scopus.com/pages/publications/84859070229

UR - https://www.scopus.com/record/pubmetrics.uri?eid=2-s2.0-84859070229&origin=recordpage

M3 - RGC 32 - Refereed conference paper (with host publication)

BT - Academy of Management 2005 Annual Meeting: A New Vision of Management in the 21st Century, AOM 2005

Y2 - 5 August 2005 through 10 August 2005

ER -

Interfirm distances as channels for external resources: The choice between alliances and mergers & acquisitions

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