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To partner or to acquire? A longitudinal study of alliances in the shipping industry

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  • Shobha S. Das

Abstract

How do firms in the liner shipping industry choose between partnerships and acquisitions? In this longitudinal empirical study, we examine dyadic partnerships and acquisitions that took place in the liner shipping industry from 1994 to 2006. We identify and test specific factors that influence liner shipping firms in their strategic choice between partnerships and acquisitions. Using Cox regressions for our analyses, we find that two factors, the extent of redundant resources and the intensity of competition, increase the likelihood of the choice of acquisition, while a third factor, the nature of resources, affects the likelihood of acquisition in an inverted-U shaped (∩) manner. In addition, the home region of a firm and prior acquisition experience increases the probability of acquisitions while prior partnership experience decreases it. The level of synergy and degree of market uncertainty do not affect the mode of alliance choice. We discuss the implications of our findings for the “partner versus acquire” strategic decision made by liner shipping firms.

Suggested Citation

  • Shobha S. Das, 2011. "To partner or to acquire? A longitudinal study of alliances in the shipping industry," Maritime Policy & Management, Taylor & Francis Journals, vol. 38(2), pages 111-128, January.
    • Handle: RePEc:taf:marpmg:v:38:y:2011:i:2:p:111-128
    DOI: 10.1080/03088839.2011.556677
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    Cited by:

    1. Daniele Crotti & Claudio Ferrari & Alessio Tei, 2020. "Merger waves and alliance stability in container shipping," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(3), pages 446-472, September.
    2. Andreou, Panayiotis C. & Louca, Christodoulos & Panayides, Photis M., 2012. "Valuation effects of mergers and acquisitions in freight transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(6), pages 1221-1234.
    3. Mohammad Ghorbani & Michele Acciaro & Sandra Transchel & Pierre Cariou, 2022. "Strategic alliances in container shipping: A review of the literature and future research agenda," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 24(2), pages 439-465, June.
    4. Alexandrou, George & Gounopoulos, Dimitrios & Thomas, Hardy M., 2014. "Mergers and acquisitions in shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 61(C), pages 212-234.
    5. Daniele Crotti & Claudio Ferrari & Alessio Tei, 2022. "Understanding the impact of demand shocks on the container port industry," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 24(4), pages 778-805, December.
    6. Notteboom, Theo E. & Parola, Francesco & Satta, Giovanni & Pallis, Athanasios A., 2017. "The relationship between port choice and terminal involvement of alliance members in container shipping," Journal of Transport Geography, Elsevier, vol. 64(C), pages 158-173.
    7. RAMON-DANGLA, Remedios & YAÑEZ-MUÑOZ, Leonardo, 2018. "How The Public Spending On Defense Can Affect Business Survival? The Case Of Shipbuilding In Spain," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 18(2), pages 71-86.
    8. Liehui Wang & Nanyi Zhang & Fei Ye & Yui‐yip Lau & César Ducruet, 2020. "The complex network analysis of liner shipping networks: Lessons from the merger between COSCO and CSCL," Growth and Change, Wiley Blackwell, vol. 51(4), pages 1877-1893, December.
    9. Alexandridis, George & Antypas, Nikolaos & Gulnur, Arman & Visvikis, Ilias, 2020. "Corporate financial leverage and M&As choices: Evidence from the shipping industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).
    10. Kuo, Szu-Yu & Lin, Pei-Chun & Lu, Chin-Shan, 2017. "The effects of dynamic capabilities, service capabilities, competitive advantage, and organizational performance in container shipping," Transportation Research Part A: Policy and Practice, Elsevier, vol. 95(C), pages 356-371.
    11. Michael J. Maloni & David M. Gligor & Ioannis N. Lagoudis, 2016. "Linking ocean container carrier capabilities to shipper–carrier relationships: a case study," Maritime Policy & Management, Taylor & Francis Journals, vol. 43(8), pages 959-975, November.
    12. Manel Antelo & David Peón, 2019. "On Cooperation Through Alliances and Mergers," Journal of Industry, Competition and Trade, Springer, vol. 19(2), pages 263-279, June.

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