Governance mode vs. governance fit?

Performance implications of make-or-ally choices for product innovation in the worldwide aircraft industry, 1942-2000

X. Castaner, L. Mulotte, B. Garrette, P. Dussauge

Research output: Contribution to journalArticleScientificpeer-review

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Abstract

We examine the impact of governance mode and governance fit on performance in make-or-ally decisions. We argue that while horizontal collaboration and autonomous governance have direct and countervailing performance implications, the alignment of make-or-ally choices with the focal firm's resource endowment and the activity's resource requirements leads to better performance. Data on the aircraft industry show that relative to aircraft developed autonomously, collaborative aircraft exhibit greater sales but require longer time-to-market. However, governance fit increases unit sales and reduces time-to-market. We contribute to the alliance and economic organization literatures.
Original languageEnglish
Pages (from-to)1386-1397
JournalStrategic Management Journal
Volume35
Issue number9
Early online date26 Jul 2013
DOIs
Publication statusPublished - Sep 2014

Fingerprint

Governance
Governance mode
Aircraft industry
Product innovation
Time to market
Aircraft
Resources
Alliances
Economic organization
Alignment
Endowments
Firm resources

Keywords

  • product innovation
  • horizontal collaboration
  • autonomous governance
  • discriminating alignment
  • endogeneity
  • aircraft industry

Cite this

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Governance mode vs. governance fit? Performance implications of make-or-ally choices for product innovation in the worldwide aircraft industry, 1942-2000 . / Castaner, X.; Mulotte, L.; Garrette, B.; Dussauge, P.

In: Strategic Management Journal, Vol. 35, No. 9, 09.2014, p. 1386-1397.

Research output: Contribution to journalArticleScientificpeer-review

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