IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i10p3815-d177347.html
   My bibliography  Save this article

Alliance Portfolio Management and Sustainability of Entrepreneurial Firms

Author

Listed:
  • Wei Han

    (Business School, China Research Institute of Enterprise Governed by Law, Southwest University of Political Science & Law, Chongqing 401120, China)

  • Feng-Wen Chen

    (School of Economics and Business Administration, Chongqing University, Chongqing 400030, China)

  • Yu Deng

    (Business School, China Research Institute of Enterprise Governed by Law, Southwest University of Political Science & Law, Chongqing 401120, China)

Abstract

The aim of the present work is to testify whether the alliance portfolio management capability has an impact on entrepreneurial firms’ sustainability. A moderating mediation model has been applied to a sample consisting of 101 entrepreneurial firms listed in New OTC Market (Over the Counter Market) in China. Based on the research design, second-hand data and first-hand data were used. The findings reveal that the two dimensions of the alliance portfolio management capability, i.e., partnering proactiveness and relational governance, can trigger a higher value of the alliance portfolio and result in the sustainable growth of entrepreneurial firms. What is more, when the board of directors has centralized power, the alliance portfolio management capability will increase the value of the alliance portfolio and improve the sustainability of entrepreneurial firms. Unlike the previous literature, this study discovers the internal mechanism between the alliance portfolio management capability and firms’ sustainability in the context of entrepreneurship. The theoretical condition of this relationship is provided from the perspective of the board of directors.

Suggested Citation

  • Wei Han & Feng-Wen Chen & Yu Deng, 2018. "Alliance Portfolio Management and Sustainability of Entrepreneurial Firms," Sustainability, MDPI, vol. 10(10), pages 1-22, October.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:10:p:3815-:d:177347
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/10/3815/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/10/10/3815/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Carter, Nancy M. & Williams, Mary & Reynolds, Paul D., 1997. "Discontinuance among new firms in retail: The influence of initial resources, strategy, and gender," Journal of Business Venturing, Elsevier, vol. 12(2), pages 125-145, March.
    2. Haider, Sajjad & Mariotti, Francesca, 2016. "The orchestration of alliance portfolios: The role of alliance portfolio capability," Scandinavian Journal of Management, Elsevier, vol. 32(3), pages 127-141.
    3. Roberto S. Vassolo & Jaideep Anand & Timothy B. Folta, 2004. "Non‐additivity in portfolios of exploration activities: a real options‐based analysis of equity alliances in biotechnology," Strategic Management Journal, Wiley Blackwell, vol. 25(11), pages 1045-1061, November.
    4. Per Davidsson & Scott Gordon, 2012. "Panel studies of new venture creation: a methods-focused review and suggestions for future research," Small Business Economics, Springer, vol. 39(4), pages 853-876, November.
    5. Feng-Wen Chen & Long-Wang Fu & Kai Wang & Sang-Bing Tsai & Ching-Hsia Su, 2018. "The Influence of Entrepreneurship and Social Networks on Economic Growth—From a Sustainable Innovation Perspective," Sustainability, MDPI, vol. 10(7), pages 1-19, July.
    6. Williamson, Oliver, 2009. "The Theory of the Firm as Governance Structure: From Choice to Contract," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 6, pages 111-134, December.
    7. Joel A. C. Baum & Tony Calabrese & Brian S. Silverman, 2000. "Don't go it alone: alliance network composition and startups' performance in Canadian biotechnology," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 267-294, March.
    8. Ulrich Wassmer & Pierre Dussauge, 2012. "Network resource stocks and flows : How do alliance portfolios affect the value of new alliance formations?," Post-Print hal-02313044, HAL.
    9. Louis Marino & Karen Strandholm & H. Kevin Steensma & K. Mark Weaver, 2002. "The Moderating Effect of National Culture on the Relationship between Entrepreneurial Orientation and Strategic Alliance Portfolio Extensiveness," Entrepreneurship Theory and Practice, , vol. 26(4), pages 145-160, July.
    10. Lu, Jiangyong & Tao, Zhigang, 2010. "Determinants of entrepreneurial activities in China," Journal of Business Venturing, Elsevier, vol. 25(3), pages 261-273, May.
    11. Glenn Hoetker & Thomas Mellewigt, 2009. "Choice and performance of governance mechanisms: matching alliance governance to asset type," Strategic Management Journal, Wiley Blackwell, vol. 30(10), pages 1025-1044, October.
    12. Koen H. Heimeriks & Geert Duysters, 2007. "Alliance Capability as a Mediator Between Experience and Alliance Performance: An Empirical Investigation into the Alliance Capability Development Process," Journal of Management Studies, Wiley Blackwell, vol. 44(1), pages 25-49, January.
    13. Riordan, Michael H. & Williamson, Oliver E., 1985. "Asset specificity and economic organization," International Journal of Industrial Organization, Elsevier, vol. 3(4), pages 365-378, December.
    14. Reynolds, Paul & Miller, Brenda, 1992. "New firm gestation: Conception, birth, and implications for research," Journal of Business Venturing, Elsevier, vol. 7(5), pages 405-417, September.
    15. Haiyang Li & Yan Zhang, 2007. "The role of managers' political networking and functional experience in new venture performance: Evidence from China's transition economy," Strategic Management Journal, Wiley Blackwell, vol. 28(8), pages 791-804, August.
    16. Ignacio Castro & José L. Galán & Cristóbal Casanueva, 2016. "Management of alliance portfolios and the role of the board of directors," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 17(2), pages 215-233, April.
    17. Dang, Chongyu & (Frank) Li, Zhichuan & Yang, Chen, 2018. "Measuring firm size in empirical corporate finance," Journal of Banking & Finance, Elsevier, vol. 86(C), pages 159-176.
    18. Tihanyi, Laszlo & Ellstrand, Alan E., 1998. "The involvement of board of directors and institutional investors in investing in transition economies: An agency theory approach," Journal of International Management, Elsevier, vol. 4(4), pages 337-351, December.
    19. Van Horne, Constance & Frayret, Jean-Marc & Poulin, Diane, 2006. "Creating value with innovation: From centre of expertise to the forest products industry," Forest Policy and Economics, Elsevier, vol. 8(7), pages 751-761, October.
    20. Bharat N. Anand & Tarun Khanna, 2000. "Do firms learn to create value? The case of alliances," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 295-315, March.
    21. Chun Guo & Jane K. Miller, 2010. "Guanxi Dynamics and Entrepreneurial Firm Creation and Development in China," Management and Organization Review, The International Association for Chinese Management Research, vol. 6(2), pages 267-291, July.
    22. Dimo Dimov, 2010. "Nascent Entrepreneurs and Venture Emergence: Opportunity Confidence, Human Capital, and Early Planning," Journal of Management Studies, Wiley Blackwell, vol. 47(6), pages 1123-1153, September.
    23. Ulrich Wassmer & Pierre Dussauge, 2012. "Network resource stocks and flows: how do alliance portfolios affect the value of new alliance formations?," Strategic Management Journal, Wiley Blackwell, vol. 33(7), pages 871-883, July.
    24. Melanie Schreiner & Prashant Kale & Daniel Corsten, 2009. "What really is alliance management capability and how does it impact alliance outcomes and success?," Strategic Management Journal, Wiley Blackwell, vol. 30(13), pages 1395-1419, December.
    25. Ulrich Wassmer & Pierre Dussauge, 2012. "Network resource stocks and flows: how do alliance portfolios affect the value of new alliance formations?," Post-Print hal-00696858, HAL.
    26. Barney, Jay B. & Zhang, Shujun, 2009. "The Future of Chinese Management Research: A Theory of Chinese Management versus A Chinese Theory of Management," Management and Organization Review, Cambridge University Press, vol. 5(1), pages 15-28, March.
    27. Phillips, Nelson & Tracey, Paul & Karra, Neri, 2013. "Building entrepreneurial tie portfolios through strategic homophily: The role of narrative identity work in venture creation and early growth," Journal of Business Venturing, Elsevier, vol. 28(1), pages 134-150.
    28. Kogut, Bruce, 1989. "The Stability of Joint Ventures: Reciprocity and Competitive Rivalry," Journal of Industrial Economics, Wiley Blackwell, vol. 38(2), pages 183-198, December.
    29. David J. Teece, 2012. "Dynamic Capabilities: Routines versus Entrepreneurial Action," Journal of Management Studies, Wiley Blackwell, vol. 49(8), pages 1395-1401, December.
    30. Guo, Chun & Miller, Jane K., 2010. "Guanxi Dynamics and Entrepreneurial Firm Creation and Development in China," Management and Organization Review, Cambridge University Press, vol. 6(2), pages 267-291, July.
    31. Scott Newbert & Erno Tornikoski, 2012. "Supporter networks and network growth: a contingency model of organizational emergence," Small Business Economics, Springer, vol. 39(1), pages 141-159, July.
    32. MB Sarkar & Preet S. Aulakh & Anoop Madhok, 2009. "Process Capabilities and Value Generation in Alliance Portfolios," Organization Science, INFORMS, vol. 20(3), pages 583-600, June.
    33. Ulrich Wassmer, 2010. "Alliance Portfolios : A Review and Research Agenda," Post-Print hal-02313048, HAL.
    34. Scott Shane & Daniel Cable, 2002. "Network Ties, Reputation, and the Financing of New Ventures," Management Science, INFORMS, vol. 48(3), pages 364-381, March.
    35. Li, Dan, 2013. "Multilateral R&D alliances by new ventures," Journal of Business Venturing, Elsevier, vol. 28(2), pages 241-260.
    36. Dovev Lavie, 2007. "Alliance portfolios and firm performance: A study of value creation and appropriation in the U.S. software industry," Strategic Management Journal, Wiley Blackwell, vol. 28(12), pages 1187-1212, December.
    37. Davidsson, Per, 2015. "Entrepreneurial opportunities and the entrepreneurship nexus: A re-conceptualization," Journal of Business Venturing, Elsevier, vol. 30(5), pages 674-695.
    38. Ruihua Joy Jiang & Qingjiu Tom Tao & Michael D. Santoro, 2010. "Alliance portfolio diversity and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 31(10), pages 1136-1144, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fei Hou & Fangnan Liao & Jie Liu & Hao Xiong, 2019. "Signing Auditors’ Foreign Experience and Debt Financing Costs: Evidence for Sustainability of Chinese Listed Companies," Sustainability, MDPI, vol. 11(23), pages 1-19, November.
    2. Jie Liang & Peng Shao, 2019. "Sequential Alliance Portfolios, Partner Reconfiguration and Firm Performance," Sustainability, MDPI, vol. 11(21), pages 1-20, October.
    3. Oh, Eun-Teak & Chen, Hao-Cheng & Nakamoto, Ryuichi & Liu, Ren-Jye, 2024. "Alliance portfolio configuration strategies as catalysts for innovation: Evidence from international alliances between Japanese and Taiwanese manufacturing corporations," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    4. Fang-Nan Liao & Xiao-Li Ji & Zhi-Ping Wang, 2019. "Firms’ Sustainability: Does Economic Policy Uncertainty Affect Internal Control?," Sustainability, MDPI, vol. 11(3), pages 1-26, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cho, Sam Yul & Arthurs, Jonathan D., 2018. "The influence of alliance experience on acquisition premiums and post-acquisition performance," Journal of Business Research, Elsevier, vol. 88(C), pages 1-10.
    2. Kavusan, K., 2015. "Essays on capability development through alliances," Other publications TiSEM 8eb736a5-b217-4718-ac13-d, Tilburg University, School of Economics and Management.
    3. Manuela N. Hoehn-Weiss & Samina Karim & Chi-Hyon Lee, 2017. "Examining Alliance Portfolios Beyond the Dyads: The Relevance of Redundancy and Nonuniformity Across and Between Partners," Organization Science, INFORMS, vol. 28(1), pages 56-73, February.
    4. Cobeña, Mar & Gallego, Ángeles & Casanueva, Cristóbal, 2017. "Heterogeneity, diversity and complementarity in alliance portfolios," European Management Journal, Elsevier, vol. 35(4), pages 464-476.
    5. Jacob, Jojo & Belderbos, René & Lokshin, Boris, 2023. "Entangled modes: Boundaries to effective international knowledge sourcing through technology alliances and technology-based acquisitions," Technovation, Elsevier, vol. 122(C).
    6. de Leeuw, Tim & Lokshin, Boris & Duysters, Geert, 2014. "Returns to alliance portfolio diversity: The relative effects of partner diversity on firm's innovative performance and productivity," Journal of Business Research, Elsevier, vol. 67(9), pages 1839-1849.
    7. Casanueva, Cristóbal & Gallego, Ángeles & Sancho, María, 2013. "Network resources and social capital in airline alliance portfolios," Tourism Management, Elsevier, vol. 36(C), pages 441-453.
    8. Casanueva, Cristóbal & Gallego, Ángeles & Castro, Ignacio & Sancho, María, 2014. "Airline alliances: Mobilizing network resources," Tourism Management, Elsevier, vol. 44(C), pages 88-98.
    9. Dovev Lavie & Randi Lunnan & Binh Minh T. Truong, 2022. "How does a partner's acquisition affect the value of the firm's alliance with that partner?," Strategic Management Journal, Wiley Blackwell, vol. 43(9), pages 1897-1926, September.
    10. Pangarkar, Nitin & Yuan, Lin & Hussain, Sairah, 2017. "Too much of a good thing? Alliance portfolio size and alliance expansion," European Management Journal, Elsevier, vol. 35(4), pages 477-485.
    11. Piening, Erk P. & Salge, Torsten Oliver & Schäfer, Sebastian, 2016. "Innovating across boundaries: A portfolio perspective on innovation partnerships of multinational corporations," Journal of World Business, Elsevier, vol. 51(3), pages 474-485.
    12. Cobeña, Mar & Gallego, à ngeles & Casanueva, Cristóbal, 2019. "Diversity in airline alliance portfolio configuration," Journal of Air Transport Management, Elsevier, vol. 75(C), pages 16-26.
    13. Van Wijk, Raymond & Nadolska, Anna, 2020. "Making more of alliance portfolios: The role of alliance portfolio coordination," European Management Journal, Elsevier, vol. 38(3), pages 388-399.
    14. Mariotti, Francesca & Haider, Sajjad, 2020. "Managing institutional diversity and structural holes: Network configurations for recombinant innovation," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    15. Doohee Chung & Marco Jinhwan Kim & Jina Kang, 2019. "Influence of alliance portfolio diversity on innovation performance: the role of internal capabilities of value creation," Review of Managerial Science, Springer, vol. 13(5), pages 1093-1120, November.
    16. Mert Tokman & Fariss Terry Mousa & Pat Dickson, 2020. "The link between SMEs alliance portfolio diversity and top management’s entrepreneurial and alliance orientations," International Entrepreneurship and Management Journal, Springer, vol. 16(3), pages 1001-1022, September.
    17. Zhiwei Wang & Hui Sun & Chenxin Ding & Long Xin & Xuechao Xia & Yuanyuan Gong, 2023. "Do Technology Alliance Network Characteristics Promote Ambidextrous Green Innovation? A Perspective from Internal and External Pressures of Firms in China," Sustainability, MDPI, vol. 15(4), pages 1-23, February.
    18. Vikas A. Aggarwal, 2020. "Resource congestion in alliance networks: How a firm's partners’ partners influence the benefits of collaboration," Strategic Management Journal, Wiley Blackwell, vol. 41(4), pages 627-655, April.
    19. Han, Shaojie & Su, Jingqin & Lyu, Yibo & Liu, Qing, 2022. "How do business incubators govern incubation relationships with different new ventures?," Technovation, Elsevier, vol. 116(C).
    20. Rogbeer, Shalini & Almahendra, Rangga & Ambos, Björn, 2014. "Open-Innovation Effectiveness: When does the Macro Design of Alliance Portfolios Matter?," Journal of International Management, Elsevier, vol. 20(4), pages 464-477.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:10:y:2018:i:10:p:3815-:d:177347. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.