Unmixed signals: How reputation and status affect alliance formation

Ithai Stern*, Janet M. Dukerich, Edward Zajac

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

85 Scopus citations

Abstract

We analyze how incumbents in technology-driven industries are influenced by founders' reputation and status when considering strategic alliances with newly emerging firms. We theorize that reputation and status represent two distinct components of perceived quality that exert independent and interdependent effects on alliance formation. Using literature on impression formation processes to derive predictions of signal congruence, we argue that the independent effects of reputation and status are amplified when the two are congruent, and that the effect of negative congruence (both reputation and status are low) is stronger than positive congruence (both are high). We find support for our arguments based on panel data on alliances between pharma and biotech firms, using data on biotech scientists' research output (reputation) and university attended (status).

Original languageEnglish (US)
Pages (from-to)512-531
Number of pages20
JournalStrategic Management Journal
Volume35
Issue number4
DOIs
StatePublished - Apr 2014

Keywords

  • alliance formation
  • newly emerging firms
  • quality signals
  • reputation
  • status

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management

Fingerprint Dive into the research topics of 'Unmixed signals: How reputation and status affect alliance formation'. Together they form a unique fingerprint.

Cite this