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Ansattprofil

Dovev Lavie

Professor II

Institutt for strategi og entreprenørskap

Publikasjoner

Lavie, Dovev; Lunnan, Randi & Truong, Binh Minh Thi (2022)

How Does a Partner’s Acquisition Affect the Value of the Firm’s Alliance with That Partner?

Strategic Management Journal Doi: 10.1002/smj.3389 - Fulltekst i vitenarkiv

How does an acquisition initiated by a firm's alliance partner affect the value that the firm can create and capture from its alliance with that partner? We conjecture that the similarity between the businesses of the firm and its partner's acquisition target restricts the firm's ability to create and capture value from its alliance, whereas the complementarity between their businesses enhances the firm's gain from its alliance. We further expect relational embeddedness between the firm and its partner to mitigate the competitive tension associated with similarity while reinforcing synergies ascribed to complementarity. Our analysis of 361 firms and their 590 alliances with 91 partners that acquired 164 targets during 2000–2016 supports our predictions about business similarity and complementarity but refutes those concerning relational embeddedness.

Lavie, Dovev; Lunnan, Randi & Truong, Binh T. Minh (2020)

How Does a Partner's Acquisition Affect the Value of the Alliance?

Academy of Management Proceedings, 2020(1) Doi: 10.5465/AMBPP.2020.8

Our study examines how a partner’s acquisition affects the value created and captured by the firm given the nature of its associations with the partner and with the partner’s acquisition target. We conjecture that business similarity between the firm and the acquisition target undermines value creation and capture, whereas business complementarity with that target creates value. We then contend that the relational embeddedness between the firm and its partner mitigates the negative effect of business similarity with the target while reinforcing the positive effect of their complementarity. Using an event study methodology, our analysis offers support to the opposing effects of business similarity and complementarity, but counters the predictions relating to the moderating effects of relational embeddedness. We conclude that if a partner acquires a target that competes with the firm, this indicates the breakdown of trust in their embedded relationship and creates a risk of knowledge spillover, which undermines the firm’s value creation and capture from the alliance. In addition, relation-specific routines can become rigid, which may prevent the firm from leveraging the complementary resources of the partner’s acquisition target.

Akademisk grad
År Akademisk institusjon Grad
2004 University of Pennsylvania PhD
Arbeidserfaring
År Arbeidsgiver Tittel
2017 - Present SDA Boccini School of Management Professor
2016 - Present BI Norwegian Business School Adjunct professor