Essays in management of technology : collaborative strategies for the American technology industries

Abstract

A dynamic theory relating alliances and acquisitions to the evolution of technology and market structure is proposed. Three case studies demonstrate how companies used different alliance and acquisition strategies as technology and the market evolved. Data from the semiconductor and computer hardware industries is presented as empirical evidence in support of the proposed technological life cycle model. The literature of alliances and acquisitions is reviewed and further empirical studies of the economics of the strategic alliances are conducted. As a technology evolves, the high-technology companies that use it or sell it in the marketplace face a changing set of challenges and priorities. The decision to form alliances or make acquisitions relies not only on firm-specific competencies and needs, but also on the evolution of technology and market structure. A firm's propensity to ally or acquire is related to the growth rate of the market, changes in products and processes, the need for resources, its market position relative to its competitors, and the availability of alliance partners and acquisition targets.