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The rise and fall of global network alliances

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  • Svein Ulset

Abstract

The purpose of this article is to develop an evolutionary transaction cost economics approach capable of explaining the rise and fall of global network alliances once created to provide global services to multinational companies. In this global services market, market contracting and integrated corporations eventually replaced global network alliances. Both inefficiently designed or applied governance and efficiently realigned governance may explain why alliances failed and subsequently were replaced by more appropriate market contracting and integrated firms. The global alliance story also illustrates the point that economic actors initially may not have the requisite capacity to look ahead and recognize contractual hazards, but that such capacity and recognition may gradually evolve as a product of negative experience. Copyright 2008 , Oxford University Press.

Suggested Citation

  • Svein Ulset, 2008. "The rise and fall of global network alliances," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 17(2), pages 267-300, April.
    • Handle: RePEc:oup:indcch:v:17:y:2008:i:2:p:267-300
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    File URL: http://hdl.handle.net/10.1093/icc/dtn003
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    Cited by:

    1. Ali J. Ahmad & Courtney Thornberry, 2018. "On the structure of business incubators: de-coupling issues and the mis-alignment of managerial incentives," The Journal of Technology Transfer, Springer, vol. 43(5), pages 1190-1212, October.
    2. Consoli, Davide & Ramlogan, Ronnie, 2009. "Scope, Strategy and Structure: The Dynamics of Knowledge Networks in Medicine," MPRA Paper 12791, University Library of Munich, Germany.
    3. Judith Clifton & Francisco Com�n & Daniel D�az-Fuentes, 2011. "From national monopoly to multinational corporation: How regulation shaped the road towards telecommunications internationalisation," Business History, Taylor & Francis Journals, vol. 53(5), pages 761-781, August.
    4. Albert Jolink & Eva Niesten, 2012. "Hybrid Governance," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 12, Edward Elgar Publishing.
    5. Jolink, Albert & Niesten, Eva, 2012. "Recent qualitative advances on hybrid organizations: Taking stock, looking ahead," Scandinavian Journal of Management, Elsevier, vol. 28(2), pages 149-161.

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