CHAPTER 3: Antecedents to Value Creation and Value Appropriation Outcomes of Strategic Alliances: The Moderating Role of Governance Mode

Research interest in the value derived from alliances has been expressed through investigation of multiple perspectives of the outcomes of alliances using terminologies such as performance, success, termination, effectiveness, strategic goal fulfillment, and achievement of partners’ objectives. The present chapter considers the antecedents to value creation and appropriation and the moderating role of governance configuration of the alliances in the antecedents-outcomes relationship. To do so, it adopts the property rights theory, which is considered to extend transaction cost economics and resource-based view. According to our proposed model, value creation of alliances depends on a number of contingency factors related to alliance’s history and orientation as well as partners’ relatedness. Value appropriation of alliances also depends upon partners’ relatedness, but it is only affected by other factors, such as firm’s bargaining power and absorptive capacity. Through the proposed model, we argue that the choice of appropriate governance configuration moderates (strengthens or weakens) the effect of the above contingency factors on value creation and appropriation. In addition, we support that value creation affects value appropriation, and vice versa.