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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

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  • Xavier Castañer
  • Louis Mulotte
  • Bernard Garrette
  • Pierre Dussauge

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. Copyright © 2013 John Wiley & Sons, Ltd.

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  • Xavier Castañer & Louis Mulotte & Bernard Garrette & Pierre Dussauge, 2014. "Governance mode vs. governance fit: Performance implications of make‐or‐ally choices for product innovation in the worldwide aircraft industry, 1942–2000," Strategic Management Journal, Wiley Blackwell, vol. 35(9), pages 1386-1397, September.
    • Handle: RePEc:bla:stratm:v:35:y:2014:i:9:p:1386-1397
    DOI: 10.1002/smj.2160
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