Advanced

Asymmetric Alliance Formation from the Small Business Perspective

Korda, Oliver LU and Moser, Josef LU (2016) ENTN19 20161
Department of Business Administration
Abstract
Purpose – This paper attempts to improve our understanding of strategic asymmetric alliance formation within the field of entrepreneurship. We employ previous research findings on alliance formation and power relationships to examine the alliance formation tactics of startups. Accordingly, we aim to answer the question: ‘How do entrepreneurs build ties with comparably larger and more established corporations?’

Methodology – This study follows a qualitative research approach. Findings stem from six case-study interviews with entrepreneurs in the fashion tech industry who established their ventures between 2011 and 2016. We evaluate their alliance formation process to identify applied tactics, perceived negotiation power distribution and... (More)
Purpose – This paper attempts to improve our understanding of strategic asymmetric alliance formation within the field of entrepreneurship. We employ previous research findings on alliance formation and power relationships to examine the alliance formation tactics of startups. Accordingly, we aim to answer the question: ‘How do entrepreneurs build ties with comparably larger and more established corporations?’

Methodology – This study follows a qualitative research approach. Findings stem from six case-study interviews with entrepreneurs in the fashion tech industry who established their ventures between 2011 and 2016. We evaluate their alliance formation process to identify applied tactics, perceived negotiation power distribution and insights about the fashion industry.

Findings – Results indicate that personal and investor networks are a key source for partner acquisition. Beside networks, entrepreneurs need to acquire industry knowledge to improve their chances of alliance formation. Further, a connection between the level of adaption of products and services to partner requests and perceived negotiation power, which ultimately leads to increased alliance dependency, could been determined.

Research limitations / implications – This study is based on data gathered in one-sided interviews in the fashion tech industry which limits general applicability of the findings. The results of this study should therefore be viewed within its limitations, namely the industry dependency, the one-sided interview approach. Further, being a qualitative case-study, the findings of this paper provide a describing rather than an explicatory perspective.

Practical implications – This study offers practical advice for entrepreneurs who are considering starting up or find themselves already in the global fashion industry. It therefore presents known tactics of alliance formation in a specific context and discusses power relationships as well as implications of entering the global fashion industry. (Less)
Please use this url to cite or link to this publication:
author
Korda, Oliver LU and Moser, Josef LU
supervisor
organization
course
ENTN19 20161
year
type
H1 - Master's Degree (One Year)
subject
keywords
strategic alliance, asymmetric alliance, small business, network, fashion industry
language
English
id
8886210
date added to LUP
2016-07-06 15:04:16
date last changed
2016-07-06 15:04:16
@misc{8886210,
  abstract     = {Purpose – This paper attempts to improve our understanding of strategic asymmetric alliance formation within the field of entrepreneurship. We employ previous research findings on alliance formation and power relationships to examine the alliance formation tactics of startups. Accordingly, we aim to answer the question: ‘How do entrepreneurs build ties with comparably larger and more established corporations?’

Methodology – This study follows a qualitative research approach. Findings stem from six case-study interviews with entrepreneurs in the fashion tech industry who established their ventures between 2011 and 2016. We evaluate their alliance formation process to identify applied tactics, perceived negotiation power distribution and insights about the fashion industry.

Findings – Results indicate that personal and investor networks are a key source for partner acquisition. Beside networks, entrepreneurs need to acquire industry knowledge to improve their chances of alliance formation. Further, a connection between the level of adaption of products and services to partner requests and perceived negotiation power, which ultimately leads to increased alliance dependency, could been determined.

Research limitations / implications – This study is based on data gathered in one-sided interviews in the fashion tech industry which limits general applicability of the findings. The results of this study should therefore be viewed within its limitations, namely the industry dependency, the one-sided interview approach. Further, being a qualitative case-study, the findings of this paper provide a describing rather than an explicatory perspective.

Practical implications – This study offers practical advice for entrepreneurs who are considering starting up or find themselves already in the global fashion industry. It therefore presents known tactics of alliance formation in a specific context and discusses power relationships as well as implications of entering the global fashion industry.},
  author       = {Korda, Oliver and Moser, Josef},
  keyword      = {strategic alliance,asymmetric alliance,small business,network,fashion industry},
  language     = {eng},
  note         = {Student Paper},
  title        = {Asymmetric Alliance Formation from the Small Business Perspective},
  year         = {2016},
}