INERTIA AND EVALUATION MECHANISMS IN INTERORGANIZATIONAL PARTNER SELECTION : SYNDICATE FORMATION AMONG U.S. INVESTMENT BANKS

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

181 Scopus Citations
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Detail(s)

Original languageEnglish
Pages (from-to)1104-1119
Journal / PublicationAcademy of Management Journal
Volume45
Issue number6
Publication statusPublished - Dec 2002
Externally publishedYes

Abstract

Past studies have consistently shown that firms favor past partners when forming new alliances. This behavior has been associated with a need to have knowledge of potential partners' capabilities and reliability. We consider inertia as an alternative rationale. Inertia and evaluation factors were tested in the context of underwriting syndicate formations in the U.S. investment banking industry. The results suggest both inertia and several evaluation criteria, including reciprocity, experience, and prior performance, influence partner selection.