TITLE

Do crowding and prestige explain why organizations collaborate?

AUTHOR(S)
Subramanian, Ram
PUB. DATE
May 1999
SOURCE
Academy of Management Executive;May99, Vol. 13 Issue 2, p90
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article examines the effects of crowding and prestige on the formation of alliances in the semiconductor industry. Another author, Toby E. Stuart, has suggested that strategic alliances actually result from a firm's position within its competitive environment. Stuart believes that there are two dimensions to a firm's competitive environment, crowding and prestige. Crowding implies that firms are technologically similar to each other and share the same technological focus. Prestige occurs when firms develop technological breakthroughs, which are followed by imitation by other firms. Stuart found that collaboration between companies aids in lowering crowding, while adding to prestige. This helps increase the firm's position within its competitive environment.
ACCESSION #
1899554

 

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