Effects of functional focus on bounded momentum: Examining firm- and industry-level alliances

Namgyoo K. Park, Xavier Martin, Jinju Lee, John Mezias

Research output: Contribution to journalArticle

Abstract

Building on strategic momentum and alliance studies, we theoretically explain and test the non-monotonicity of the alliance momentum of same- or cross-functional-type alliances. We theorize about critical drivers that generate bounded momentum and further argue whether function-specific momentum occurs sequentially or simultaneously. We examine cross-border alliances of 32 international airlines from 1945 to 1994 and find that the inverted U-shaped pattern of alliance momentum holds for same-type but not for cross-type alliances at both the firm and industry levels. These findings imply that alliance momentum with a specific functional focus evolves sequentially rather than simultaneously.

Original languageEnglish (US)
Pages (from-to)167-191
Number of pages25
JournalStrategic Organization
Volume16
Issue number2
DOIs
StatePublished - May 1 2018

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Keywords

  • airline industry
  • cross-border alliance formation
  • functional types
  • strategic momentum

ASJC Scopus subject areas

  • Business and International Management
  • Education
  • Industrial relations
  • Strategy and Management

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