The Management Department & The Research Center
- MOS WORKSHOP -
Ha Hoang & Archita Sarmah
will present their paper
Tuesday, January 23rd 2018
Room N231 – 9:15 a.m in Cergy
4:15 p.m in Singapore
Theme: “Allying Under Uncertainty: R&D Multimarket Contact and Entrant-Market Incumbent Alliance Formation”
Abstract: This study examines the decision by an entrant to form an alliance with a R&D market incumbent who is already present with active R&D projects. We examined the collaborative entry decisions of 62 biopharmaceutical firms into 189 R&D markets over a 10-year period. While accounting for firm, dyad, and market-level influences, our analysis reveals that increasing levels of R&D multimarket contact (MMC) facilitates entrant-market incumbent R&D alliance formation. Furthermore, when a market incumbent has footholds in shared markets that constitute the entrant’s spheres of influence, the likelihood of R&D alliance formation between them increases. R&D MMC thus facilitates alliance formation in exploration contexts by reducing uncertainty and raising the prospects of future collaborative gains. Implications for alliance formation, multimarket contact and competitive dynamics are discussed.
