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

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)Not applicablepeer-review

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Author(s)

Detail(s)

Original languageEnglish
Title of host publicationAcademy of Management 2005 Annual Meeting: A New Vision of Management in the 21st Century, AOM 2005
StatePublished - 2005
Externally publishedYes

Conference

Title65th Annual Meeting of the Academy of Management, AOM 2005
PlaceUnited States
CityHonolulu, HI
Period5 - 10 August 2005

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.

Research Area(s)

  • Alliances, Interfirm distances, Mergers & acquisitions

Citation Format(s)

Interfirm distances as channels for external resources : The choice between alliances and mergers & acquisitions. / Yang, Haibin; Lin, Zhiang.

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: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)Not applicablepeer-review