| THE EXTERNAL ALLIANCES OF JAPANESE KEIRETSU MEMBER FIRMS |
Received:October 07, 2017 Revised:October 14, 2017 |
Key Words: Interfirm Alliances, Business Group, Japanese Keiretsu, Network Embeddedness, Alliance Strategy |
| Author Name | Affiliation | | Tianyou Hu0 | King Fahd University of Petroleum and Minerals | | Andrew Delios0 | National University of Singapore | | Shu YU* | City University of Hong Kong |
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Abstract: |
| We investigate the alliance formation of firms affiliated with Japanese business groups (Keiretsu affiliates) and their strategies of choosing suitable partners. Although Keiretsu affiliates mainly exchange resources with same-group peers, they would form alliances with external partners to complement their network. Accordingly, we set out to explore how Keiretsu affiliates form external alliances by evaluating three factors that could affect their decisions: environmental uncertainty, collaborative uncertainty, and inter-Keiretsu competition. Our analysis has shown that Keiretsu affiliates would form alliances with external partners to complete their capabilities when environmental uncertainty is high. This preference will be reinforced as they gain more experience in external alliances. In the meantime, Keiretsu affiliates consider collaborative uncertainty, in that they prefer external Keiretsu affiliates to stand-alone to cope with a highly uncertain environment because the former has high creditability and support from their business groups and could potentially contribute more to the alliances. Our theoretical and empirical analysis reveals how Keiretsu affiliates weighing between uncertainty and competition in their partnering decision. |
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