Safeguarding from the Sharks: Board Representation in Minority Equity Partnerships

Published Online:https://doi.org/10.1287/orsc.2018.1263

References

  • Adams RB, Ferreira D (2007) A theory of friendly boards. J. Finance 62(1):217–250.CrossrefGoogle Scholar
  • Adams RB, Hermalin BE, Weisbach MS (2010) The role of boards of directors in corporate governance: A conceptual framework and survey. J. Econom. Literature 48(1):58–107.CrossrefGoogle Scholar
  • Adegbesan JA, Higgins MJ (2011) The intra‐alliance division of value created through collaboration. Strategic Management J. 32(2):187–211.CrossrefGoogle Scholar
  • Ahuja G (2000) The duality of collaboration: Inducements and opportunities in the formation of interfirm linkages. Strategic Management J. 21(3):317–343.CrossrefGoogle Scholar
  • Ahuja G, Katila R (2001) Technological acquisitions and the innovation performance of acquiring firms: A longitudinal study. Strategic Management J. 22(3):197–220.CrossrefGoogle Scholar
  • Ahuja G, Lampert C (2001) Entrepreneurship in the large corp.: A longitudinal study of how established firms create breakthrough inventions. Strategic Management J. 22(6/7):521.CrossrefGoogle Scholar
  • Anand BN, Khanna T (2000) Do firms learn to create value? The case of alliances. Strategic Management J. 21(3):295–315.CrossrefGoogle Scholar
  • Anand J, Oriani R, Vassolo RS (2010) Alliance activity as a dynamic capability in the face of a discontinuous technological change. Organ. Sci. 21(6):1213–1232.LinkGoogle Scholar
  • Argyres NS, Silverman BS (2004) R&D, organization structure, and the development of corporate technological knowledge. Strategic Management J. 25(8–9):929–958.CrossrefGoogle Scholar
  • Argyres NS, Bercovitz J, Mayer KJ (2007) Complementarity and evolution of contractual provisions: An empirical study of IT services contracts. Organ. Sci. 18(1):3–19.LinkGoogle Scholar
  • Arino A, De La Torre J (1998) Learning from failure: Toward an evolutionary model of collaborative ventures. Organ. Sci. 9(3):306–325.LinkGoogle Scholar
  • Arora A, Gambardella A (1994) Evaluating technological information and utilizing it: Scientific knowledge, technological capability, and external linkages in biotechnology. J. Econom. Behav. Organ. 24(1):91–114.CrossrefGoogle Scholar
  • Baum JAC, Calabrese T, Silverman BS (2000) Don’t go it alone: Alliance network composition and startups’ performance in canadian biotechnology. Strategic Management J. 21(3):267–294.CrossrefGoogle Scholar
  • Baysinger B, Butler H (1985) Corporate governance and the board of directors: Performance effects of changes in board composition. J. Law Econom. Organ. 1(1):101–124.Google Scholar
  • Baysinger BD, Hoskisson RE (1990) The composition of boards of directors and strategic control: Effects on corporate strategy. Acad. Management Rev. 15(1):72–87.CrossrefGoogle Scholar
  • Boeker W, Wiltbank R (2005) New venture evolution and managerial capabilities. Organ. Sci. 16(2):123–133.LinkGoogle Scholar
  • Boone A, Casares Field L, Karpoff J, Raheja C (2007) The determinants of corporate board size and composition: An empirical analysis. J. Financial Econom. 85(1):66–101.CrossrefGoogle Scholar
  • Carpenter MA, Westphal JD (2001) The strategic context of external network ties: Examining the impact of director appointments on board involvement in strategic decision making. Acad. Management J. 44(4):639–660.CrossrefGoogle Scholar
  • Certo ST, Daily CM, Dalton DR (2001) Signaling firm value through board structure: An investigation of initial public offerings. Entrepreneurship Theory Practice 26(2):33–51.CrossrefGoogle Scholar
  • Cohen WM, Levinthal DA (1990) Absorptive capacity: A new perspective on learning and innovation. Admin. Sci. Quart. 35(1):128–152.CrossrefGoogle Scholar
  • Coles JL, Daniel ND, Naveen L (2008) Boards: Does one size fit all. J. Financial Econom. 87(2):329–356.CrossrefGoogle Scholar
  • Cox Pahnke E, McDonald R, Wang D, Hallen B (2015) Exposed: Venture capital, competitor ties, and entrepreneurial innovation. Acad. Management J. 58(5):1334–1360.CrossrefGoogle Scholar
  • Dalton DR, Daily CM, Ellstrand AE, Johnson JL (1998) Meta-analytic reviews of board composition, leadership structure, and financial performance. Strategic Management J. 19(3):269–290.CrossrefGoogle Scholar
  • Das S, Sen PK, Sengupta S (1998) Impact of strategic alliances on firm valuation. Acad. Management J. 41(1):27–41.CrossrefGoogle Scholar
  • Diestre L, Rajagopalan N (2012) Are all sharks dangerous? New biotechnology ventures and partner selection in R&D alliances. Strategic Management J. 33(10):1115–1134.CrossrefGoogle Scholar
  • Dushnitsky G, Lenox MJ (2005a) When do firms undertake R&D by investing in new ventures? Strategic Management J. 26(10):947–965.CrossrefGoogle Scholar
  • Dushnitsky G, Lenox MJ (2005b) When do incumbents learn from entrepreneurial ventures?: Corporate venture capital and investing firm innovation rates. Res. Policy 34(5):615–639.CrossrefGoogle Scholar
  • Dushnitsky G, Lenox MJ (2006) When does corporate venture capital investment create firm value? J. Bus. Venturing 21(6):753–772.CrossrefGoogle Scholar
  • Dushnitsky G, Shaver JM (2009) Limitations to interorganizational knowledge acquisition: The paradox of corporate venture capital. Strategic Management J. 30(10):1045–1064.CrossrefGoogle Scholar
  • Elfenbein DW, Lerner J (2009) Exclusivity, contingent control rights, and the design of internet portal alliances. J. Law Econom. Organ. 28(1):45–76.CrossrefGoogle Scholar
  • Ellstrand AE, Tihanyi L, Johnson JL (2002) Board structure and international political risk. Acad. Management J. 45(4):769–777.CrossrefGoogle Scholar
  • Fama EF, Jensen MC (1983) Separation of ownership and control. J. Law Econom. 26(2):301–325.CrossrefGoogle Scholar
  • Field L, Lowry M, Mkrtchyan A (2013) Are busy boards detrimental? J. Financial Econom. 109(1):63–82.CrossrefGoogle Scholar
  • Garćia-Canal E (1996) Contractual form in domestic and international strategic alliances. Organ. Stud. 17(5):773–794.CrossrefGoogle Scholar
  • Genentech (1994) Annual report. Accessed February 20, 2017, https://www.sec.gov/Archives/edgar/data/318771/0000318771-95-000005.txt.Google Scholar
  • Geringer JM, Hebert L (1989) Control and performance of international joint ventures. J. Internat. Bus. Stud. 20(2):235–254.CrossrefGoogle Scholar
  • Goldberger AS (1964) Econometric Theory (John Wiley & Sons, New York).Google Scholar
  • Gompers P, Lerner J (2000) The determinants of corporate venture capital success: Organizational structure, incentives, and complementarities. Morck R, ed. Concentrated Corporate Ownership (University of Chicago Press, Chicago), 17–54.Google Scholar
  • Gulati R (1995) Does familiarity breed trust? The implications of repeated ties for contractual choice in alliances. Acad. Management J. 38(1):85–112.CrossrefGoogle Scholar
  • Gulati R, Singh H (1998) The architecture of cooperation: Managing coordination costs and appropriation concerns in strategic alliances. Admin. Sci. Quart. 43(4):781–814.CrossrefGoogle Scholar
  • Gulati R, Lavie D, Singh H (2009) The nature of partnering experience and the gains from alliances. Strategic Management J. 30(11):1213–1233.CrossrefGoogle Scholar
  • Gulati R, Lawrence PR, Puranam P (2005) Adaptation in vertical relationships: Beyond incentive conflict. Strategic Management J. 26(5):415–440.CrossrefGoogle Scholar
  • Hall BH, Jaffe A, Trajtenberg M (2005) Market value and patent citations. RAND J. Econom. 36(1):16–38.Google Scholar
  • Hallen BL, Katila R, Rosenberger JD (2014) How do social defenses work? A resource-dependence lens on technology ventures, venture capital investors, and corporate relationships. Acad. Management J. 57(4):1078–1101.CrossrefGoogle Scholar
  • Hellmann T (2002) A theory of strategic venture investing. J. Financial Econom. 64(2):285–314.CrossrefGoogle Scholar
  • Hermalin BE, Weisbach MS (1998) Endogenously chosen boards of directors and their monitoring of the CEO. Amer. Econom. Rev. 88(1):96–118.Google Scholar
  • Hermalin BE, Weisbach MS (2003) Boards of directors as an endogenously determined institution: A survey of the economic literature. Econom. Policy Rev. 9(1):8–26.Google Scholar
  • Hernandez E, Sanders WG, Tuschke A (2015) Network defense: Pruning, grafting, and closing to prevent leakage of strategic knowledge to rivals. Acad. Management J. 58(4):1233–1260.CrossrefGoogle Scholar
  • Hillman AJ, Dalziel T (2003) Boards of directors and firm performance: Integrating agency and resource dependence perspectives. Acad. Management Rev. 28(3):383–396.CrossrefGoogle Scholar
  • Hoang H, Rothaermel FT (2005) The effect of general and partner-specific alliance experience on joint R&D project performance. Acad. Management J. 48(2):332–345.CrossrefGoogle Scholar
  • Ivanov VI, Xie F (2010) Do corporate venture capitalists add value to start-up firms? Evidence from IPOs and acquisitions of VC-backed companies. Financial Management 39(1):129–152.CrossrefGoogle Scholar
  • Kale P, Dyer J, Singh H (2002) Alliance capability, stock market response, & long-term alliance success: The role of the alliance function. Strategic Management J. 23(8):747–767.CrossrefGoogle Scholar
  • Kaplan SN, Strömberg P (2003) Financial contracting theory meets the real world: An empirical analysis of venture capital contracts. Rev. Econom. Stud. 70(2):281–315.Google Scholar
  • Kapoor R, Lee JM (2013) Coordinating and competing in ecosystems: How organizational forms shape new technology investments. Strategic Management J. 34(3):274–296.CrossrefGoogle Scholar
  • Katila R, Rosenberger J, Eisenhardt K (2008) Swimming with sharks: Technology ventures, defense mechanisms & corp. relationships. Admin. Sci. Quart. 53(2):295–332.CrossrefGoogle Scholar
  • Khanna T, Gulati R, Nohria N (1998) The dynamics of learning alliances: Competition, cooperation, and relative scope. Strategic Management J. 19(3):193–210.CrossrefGoogle Scholar
  • Knott AM (2008) R&D/returns causality: Absorptive capacity or organizational IQ. Management Sci. 54(12):2054–2067.Google Scholar
  • Kor YY (2006) Direct and interaction effects of top management team and board compositions on R&D investment strategy. Strategic Management J. 27(11):1081–1099.CrossrefGoogle Scholar
  • Kumar S, Seth A (1998) The design of coordination and control mechanisms for managing joint venture-parent relationships. Strategic Management J. 19(6):579–599.CrossrefGoogle Scholar
  • Lane PJ, Lubatkin M (1998) Relative absorptive capacity and interorganizational learning. Strategic Management J. 19(5):461–477.CrossrefGoogle Scholar
  • Lerner J (1994) Venture capitalists and the decision to go public. J. Financial Econom. 35(3):293–316.Google Scholar
  • Lerner J, Malmendier U (2010) Contractibility and the design of research agreements. Amer. Econom. Rev. 100(1):214–246.CrossrefGoogle Scholar
  • Lerner J, Merges RP (1998) The control of technology alliances: An empirical analysis of the biotechnology industry. J. Indust. Econom. 46(2):125–156.CrossrefGoogle Scholar
  • Lerner J, Shane H, Tsai A (2003) Do equity financing cycles matter? Evidence from biotechnology alliances. J. Financial Econom. 67(3):411–446.CrossrefGoogle Scholar
  • Linck JS, Netter JM, Yang T (2008) The determinants of board structure. J. Financial Econom. 87(2):308–328.CrossrefGoogle Scholar
  • Lumineau F, Malhotra D (2011) Shadow of the contract: How contract structure shapes interfirm dispute resolution. Strategic Management J. 32(5):532–555.CrossrefGoogle Scholar
  • Macher JT, Boerner CS (2006) Experience and scale and scope economies: Trade-offs and performance in development. Strategic Management J. 27(9):845–865.CrossrefGoogle Scholar
  • Maddala GS (1983) Qualitative and Limited Dependent Variable Models (Cambridge University Press, Cambridge, UK).Google Scholar
  • Maula MVJ, Autio E, Murray GC (2009) Corporate venture capital and the balance of risks and rewards for portfolio companies. J. Bus. Venturing 24(3):274–286.CrossrefGoogle Scholar
  • Mitchell W, Singh K (1996) Survival of businesses using collaborative relationships to commercialize complex goods. Strategic Management J. 17(3):169–195.CrossrefGoogle Scholar
  • Mjoen H, Tallman S (1997) Control and performance in international joint ventures. Organ. Sci. 8(3):257–274.LinkGoogle Scholar
  • Mowery DC, Oxley JE, Silverman BS (1996) Strategic alliances and interfirm knowledge transfer. Strategic Management J. 17(S2):77–91.Google Scholar
  • Nicholson S, Danzon P, McCullough J (2005) Biotech‐pharmaceutical alliances as a signal of asset and firm quality. J. Bus. 78(4):1433–1464.CrossrefGoogle Scholar
  • Oxley JE (1997) Appropriability hazards and governance in strategic alliances: A transaction cost approach. J. Law Econom. Organ. 13(2):387–409.CrossrefGoogle Scholar
  • Oxley JE, Sampson RC (2004) The scope and governance of international R&D alliances. Strategic Management J. 25(8/9):723–749.CrossrefGoogle Scholar
  • Oxley JE, Wada T (2009) Alliance structure and the scope of knowledge transfer: Evidence from U.S.-Japan agreements. Management Sci. 55(4):635–649.LinkGoogle Scholar
  • Park HD, Steensma HK (2012) When does corporate venture capital add value for new ventures? Strategic Management J. 33(1):1–22.CrossrefGoogle Scholar
  • Parkhe A (1993) Strategic alliance structuring: A game theoretic and transaction cost examination of interfirm cooperation. Acad. Management J. 36(4):794–829.CrossrefGoogle Scholar
  • Pisano GP (1989) Using equity participation to support exchange: Evidence from the biotechnology industry. J. Law Econom. Organ. 5(1):109–126.Google Scholar
  • Poppo L, Zenger T (2002) Do formal contracts and relational governance function as substitutes or complements? Strategic Management J. 23(8):707–725.CrossrefGoogle Scholar
  • Reuer JJ, Zollo M, Singh H (2002) Post-formation dynamics in strategic alliances. Strategic Management J. 23(2):135–151.CrossrefGoogle Scholar
  • Robinson DT, Stuart TE (2007a) Financial contracting in biotech strategic alliances. J. Law Econom. 50(3):559–595.CrossrefGoogle Scholar
  • Robinson DT, Stuart TE (2007b) Network effects in the governance of strategic alliances. J. Law Econom. Organ. 23(1):242–273.CrossrefGoogle Scholar
  • Rosenstein J (1988) The board and strategy: Venture capital and high technology. J. Bus. Venturing 3(2):159–170.Google Scholar
  • Rothaermel FT (2001) Incumbent’s advantage through exploiting complementary assets via interfirm cooperation. Strategic Management J. 22(6/7):687–699.CrossrefGoogle Scholar
  • Rothaermel FT, Boeker W (2008) Old technology meets new technology: Complementarities, similarities, and alliance formation. Strategic Management J. 29(1):47–77.Google Scholar
  • Ryall M, Sampson R (2009) Formal contracts in the presence of relational enforcement mechanisms: Evidence from tech. development projects. Management Sci. 55(6):906–925.LinkGoogle Scholar
  • Sampson RC (2007) R&D alliances and firm performance: The impact of technological diversity and alliance organization on innovation. Acad. Management J. 50(2):364–386.CrossrefGoogle Scholar
  • Schilling MA (2009) Understanding the alliance data. Strategic Management J. 30(3):233–260.CrossrefGoogle Scholar
  • Sears J, Hoetker G (2014) Technological overlap, technological capabilities, and resource recombination in technological acquisitions. Strategic Management J. 35(1):48–67.CrossrefGoogle Scholar
  • Terza JV, Basu A, Rathouz PJ (2008) Two-stage residual inclusion estimation: Addressing endogeneity in health econometric modeling. J. Health Econom. 27(3):531–543.CrossrefGoogle Scholar
  • Vanneste BS, Puranam P (2010) Repeated interactions and contractual detail: Identifying the learning effect. Organ. Sci. 21(1):186–201.LinkGoogle Scholar
  • Wadhwa A, Phelps C, Kota S (2016) Corporate venture capital portfolios and firm innovation. J. Bus. Venturing 31(1):95–112.CrossrefGoogle Scholar
  • Weber L, Mayer KJ, Macher JT (2011) An analysis of extendibility and early termination provisions: The importance of framing duration safeguards. Acad. Management J. 54(1):182–202.CrossrefGoogle Scholar
  • Williamson OE (1984) Corporate governance. Yale Law J. 93(7):1197–1230.CrossrefGoogle Scholar
  • Williamson OE (1985) The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting (Free Press, New York).Google Scholar
  • Williamson OE (1991) Comparative economic organization: The analysis of discrete structural alternatives. Admin. Sci. Quart. 36(2):269–296.CrossrefGoogle Scholar
  • Yan A, Gray B (1994) Bargaining power, management control, and performance in United States-China joint ventures: A comparative case study. Acad. Management J. 37(6):1478–1517.CrossrefGoogle Scholar
  • Zahra SA, Pearce JA (1989) Boards of directors and corporate financial performance: A review and integrative model. J. Management 15(2):291–334.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.