Alliance capability,stock market response,and long‐term alliance success: the role of the alliance function

This paper addresses two key questions: (1) what factors influence firms' ability to build alliance capability and enjoy greater alliance success, where firm‐level alliance success is measured in two ways: (a) abnormal stock market gains following alliance announcements and (b) managerial assessments of long term alliance performance; and (2) are the two alternate ways of assessing alliance success correlated? We find that firms with greater alliance experience and, more importantly, those that create a dedicated alliance function (with the intent of strategically coordinating alliance activity and capturing/disseminating alliance‐related knowledge) realize greater success with alliances. More specifically, firms with a dedicated alliance function achieve greater abnormal stock market gains (average of 1.35%) and report that 63 percent of alliances are successful whereas firms without an alliance function achieve much lower stock market gains (average of 0.18%) and only a 50 percent long‐term success rate. We also find a positive correlation between stock market‐based measures of alliance success and alliance success measured through managerial assessments. In addition to providing insights into the development of alliance capability among firms, this paper is one of the first to provide empirical support for the efficient markets argument by demonstrating that the initial stock market response to a key event positively correlates to the long‐term performance and value of the event. Copyright © 2002 John Wiley & Sons, Ltd.     

AN ONLINE PORTFOLIO SELECTION ALGORITHM WITH REGRET LOGARITHMIC IN PRICE VARIATION

We present a novel efficient algorithm for portfolio selection which theoretically attains two desirable properties:

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Geographic overlap and acquisition pairing

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Chinese institutions and standardization: The case of government support to domestic third generation cellular standard

There are unique and distinct institutional processes associated with the Chinese government's support of the domestically developed third generation (3G) cellular standard, TD-SCDMA. After postponing several times, China awarded three third generation cellular licenses in January 2009: a TD-SCDMA license to China Mobile, a CDMA 2000 license to China Telecom and a WCDMA license to China Unicom. The Chinese government has demonstrated a clear bias in favor of TD-SCDMA. This article examines the role of formal and informal institutions in shaping the Chinese 3G landscape. This paper makes two contributions to the literature. First, this work extends studies on institutional theory focusing on standardization to the context of China. Second, unlike most ICT research which deals with standards originated in the West, this paper's focus on developing country-originated standard provides novel and unique insights related to institutional processes.     

Corporate Leverage and Specialized Investments by Customers and Suppliers

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In response to the lack of research on the impact of religion on consumer behaviour, this study investigates how consumers' use of various product information sources can differ depending on their levels of religiosity (high, low and none). Data were collected from Korean consumers in Korea. The findings from data analyses indicate that the usages of product information sources among Korean consumers generally vary based upon their levels of religiosity. Limitations and suggestions for future research to further understand the effects of religiosity on consumer behaviour were addressed.     

Predictors of management development effectiveness: an Australian perspective

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Where do capabilities come from and how do they matter? A study in the software services industry

Recent years have witnessed a surge of interest in the notion of capabilities as an important source of competitive advantage. This recognition has, in turn, placed emphasis on the question of where and how these capabilities emerge and how they influence firm performance. The present paper is an attempt to address this question. Using a large sample of detailed project‐level data from a leading firm in the global software services industry, we attempt to empirically study the importance of capabilities. We find that two broad classes of capabilities are significant. The first class, which we label client‐specific capabilities, is a function of repeated interactions with clients over time and across different projects. This learning from repeated interactions with a given client reduces project execution costs and helps improve project contribution. The second class, termed project management capabilities, is acquired through deliberate and persistent investments in infrastructure and systems to improve the firm's software development process. Our empirical results suggest that the marginal returns to acquiring different capabilities may be different and an understanding of such trade‐offs can improve firm decisions to improve and/or acquire such capabilities. We discuss the key contributions of our paper and the implications for future research on capabilities. Copyright © 2004 John Wiley & Sons, Ltd.