Ties that tear apart. The social embeddedness of strategic alliance termination

G. Rook, C. Snijders, G.M. Duijsters

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Strategic alliances between firms are inherently unstable, and many alliances fail before the planned termination date. Most studies of the instability of strategic alliances focus on internal factors, such as tensions between alliance partners. In the present study social networks, in particular the centrality of firms in an alliance network, are considered as factors explaining alliance instability. The study examines 1061 ICT-alliances that were formed in the period 1975–1989. As expected, it was found that differences in centrality increase alliance instability. Contrary to the expectation, the sum of centralities of firms in an alliance does not affect alliance instability.
Original languageEnglish
Pages (from-to)359-366
JournalThe Social Science Journal
Volume50
Issue number3
DOIs
Publication statusPublished - 2013

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Ties that tear apart. The social embeddedness of strategic alliance termination. / Rook, G.; Snijders, C.; Duijsters, G.M.

In: The Social Science Journal, Vol. 50, No. 3, 2013, p. 359-366.

Research output: Contribution to journalArticleScientificpeer-review

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AU - Snijders, C.

AU - Duijsters, G.M.

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AB - Strategic alliances between firms are inherently unstable, and many alliances fail before the planned termination date. Most studies of the instability of strategic alliances focus on internal factors, such as tensions between alliance partners. In the present study social networks, in particular the centrality of firms in an alliance network, are considered as factors explaining alliance instability. The study examines 1061 ICT-alliances that were formed in the period 1975–1989. As expected, it was found that differences in centrality increase alliance instability. Contrary to the expectation, the sum of centralities of firms in an alliance does not affect alliance instability.

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DO - 10.1016/j.soscij.2013.03.008

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JO - The Social Science Journal

JF - The Social Science Journal

SN - 0362-3319

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