When collaborative strategy turns into acquisition

Distinguishing and explaining partner acquisition versus joint venture buyout

Research output: Chapter in Book/Report/Conference proceedingChapterScientificpeer-review

Abstract

In this chapter, we define the concepts of joint venture buyout and partner acquisition; explain the differences between the two; discuss their respective motivations and antecedents; and elaborate implications of this distinction for research and practice. Extract: "What comes after an alliance between two firms? The alliance may be dissolved and its activities stopped, effectively ending the relationship between the parent firms; another alliance may be formed to replace it; or the activities of the ex-alliance may continue but under the ownership and control of a single parent. Intriguingly, in the case of JVs this latter outcome may result from two developments. The first, which we refer to as a joint venture buyout (JVB), occurs when one parent firm takes over the shares that the other parent owned in their JV (Meschi, 2005; Zollo & Reuer, 2010). The second, which we refer to as a partner acquisition (PA), occurs when one partner acquires the other parent firm (Folta & Miller, 2002; Zaheer, Hernandez, & Banerjee, 2010).The two developments differ in what equity is being transacted. A JVB involves a change in ownership of one parent’s share of the JV’s equity, but does not affect either parents’ own equity. A PA involves acquisition of one parent by the other, so what is being transacted is one parent’s own equity. However, following a PA the acquiring parent also becomes sole owner of the alliance (Hagedoorn & Sadowski, 1999; Porrini, 2004)." (80)
Original languageEnglish
Title of host publicationCollaborative Strategy
Subtitle of host publicationA Guide to Strategic Alliances
EditorsL.F. Mesquita, R. Ragozzino, J.J. Reuer
Place of PublicationCheltenham, UK
PublisherEdward Elgar
Pages79-87
Number of pages8
ISBN (Print)9781783479573
Publication statusPublished - Apr 2017

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Alliances
Buy-out
Joint ventures
Equity
Ownership
Single parents
Ownership and control
Owners

Cite this

Stienstra, M., & Martin, X. (2017). When collaborative strategy turns into acquisition: Distinguishing and explaining partner acquisition versus joint venture buyout. In L. F. Mesquita, R. Ragozzino, & J. J. Reuer (Eds.), Collaborative Strategy: A Guide to Strategic Alliances (pp. 79-87). [chapter 9] Cheltenham, UK: Edward Elgar.
Stienstra, Miranda ; Martin, Xavier. / When collaborative strategy turns into acquisition : Distinguishing and explaining partner acquisition versus joint venture buyout. Collaborative Strategy: A Guide to Strategic Alliances. editor / L.F. Mesquita ; R. Ragozzino ; J.J. Reuer. Cheltenham, UK : Edward Elgar, 2017. pp. 79-87
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Stienstra, M & Martin, X 2017, When collaborative strategy turns into acquisition: Distinguishing and explaining partner acquisition versus joint venture buyout. in LF Mesquita, R Ragozzino & JJ Reuer (eds), Collaborative Strategy: A Guide to Strategic Alliances., chapter 9, Edward Elgar, Cheltenham, UK, pp. 79-87.

When collaborative strategy turns into acquisition : Distinguishing and explaining partner acquisition versus joint venture buyout. / Stienstra, Miranda; Martin, Xavier.

Collaborative Strategy: A Guide to Strategic Alliances. ed. / L.F. Mesquita; R. Ragozzino; J.J. Reuer. Cheltenham, UK : Edward Elgar, 2017. p. 79-87 chapter 9.

Research output: Chapter in Book/Report/Conference proceedingChapterScientificpeer-review

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AB - In this chapter, we define the concepts of joint venture buyout and partner acquisition; explain the differences between the two; discuss their respective motivations and antecedents; and elaborate implications of this distinction for research and practice. Extract: "What comes after an alliance between two firms? The alliance may be dissolved and its activities stopped, effectively ending the relationship between the parent firms; another alliance may be formed to replace it; or the activities of the ex-alliance may continue but under the ownership and control of a single parent. Intriguingly, in the case of JVs this latter outcome may result from two developments. The first, which we refer to as a joint venture buyout (JVB), occurs when one parent firm takes over the shares that the other parent owned in their JV (Meschi, 2005; Zollo & Reuer, 2010). The second, which we refer to as a partner acquisition (PA), occurs when one partner acquires the other parent firm (Folta & Miller, 2002; Zaheer, Hernandez, & Banerjee, 2010).The two developments differ in what equity is being transacted. A JVB involves a change in ownership of one parent’s share of the JV’s equity, but does not affect either parents’ own equity. A PA involves acquisition of one parent by the other, so what is being transacted is one parent’s own equity. However, following a PA the acquiring parent also becomes sole owner of the alliance (Hagedoorn & Sadowski, 1999; Porrini, 2004)." (80)

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Stienstra M, Martin X. When collaborative strategy turns into acquisition: Distinguishing and explaining partner acquisition versus joint venture buyout. In Mesquita LF, Ragozzino R, Reuer JJ, editors, Collaborative Strategy: A Guide to Strategic Alliances. Cheltenham, UK: Edward Elgar. 2017. p. 79-87. chapter 9