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Governance mode vs. governance fit?: Performance implications of make-or-ally choices for product innovation in the worldwide aircraft industry, 1942-2000
Castaner,X. Mulotte,L. Garrette,B. Dussauge,P.
Castaner,X.
Mulotte,L.
Garrette,B.
Dussauge,P.
Abstract
We examine the impact of governance mode and governance fit on performance in make-or-ally decisions. We argue that while horizontal collaboration and autonomous governance have direct and countervailing performance implications, the alignment of make-or-ally choices with the focal firm's resource endowment and the activity's resource requirements leads to better performance. Data on the aircraft industry show that relative to aircraft developed autonomously, collaborative aircraft exhibit greater sales but require longer time-to-market. However, governance fit increases unit sales and reduces time-to-market. We contribute to the alliance and economic organization literatures.
Description
Date
2014-09
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Volume Title
Publisher
Research Projects
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Keywords
product innovation, horizontal collaboration, autonomous governance, discriminating alignment, endogeneity, aircraft industry, SDG 9 - Industry, Innovation, and Infrastructure
Citation
Castaner, X, Mulotte, L, Garrette, B & Dussauge, P 2014, 'Governance mode vs. governance fit? Performance implications of make-or-ally choices for product innovation in the worldwide aircraft industry, 1942-2000 ', Strategic Management Journal, vol. 35, no. 9, pp. 1386-1397. https://doi.org/10.1002/smj.2160