How the strategic objectives pursued in inter-firm relationships influence the choice of the governance form: an empirical study in two high-tech Italian industries

Abstract

In today’s competitive landscape, the choice of the appropriate mode to governance an inter-firm relationship is an important factor for companies. In literature several theoretical strands have examined the impact of the alliance purpose on the governance forms. Building on a robust literature review on the topic, this study focuses on a specific issue influencing the choice of the governance form in inter-firm relationships, i.e. the alliances’ purpose with relation to partner’s resources. We gather in a unique framework three typologies of partner’s resources, i.e. production, R&D and marketing, and through two empirical analyses in two different Italian industries, machine tool and pharmaceutical, we show how differently these purposes shape the choice of the governance mode.