Background: A majority of strategic alliances do not create value for the participants. One of the main reasons for the high failure rate is an inadequate process for partner selection. If the correct partner is not selected, it can have serious effects on the management of the partnership. This is a serious problem since failed alliances usually are very expensive for the involved companies. Purpose: The purpose of this thesis is to investigate which theoretical factors are important when selecting a partner for a strategic alliance. Further we aim to investigate how these factors can effect partner selection for small and middle size technology intensive companies. Realisation: The empirical part is based on interviews with persons holding key positions at four case companies. All the case companies are situated in Mjärdevi Science Park. Result: Our research has shown that the strategic fit is the crucial factor. Other important factors are brand, network position, compatibility and attention when selecting a partner for a strategic alliance.

After the deregulation of the airline industry new actors entered the market and among them were the low-cost airlines. These actors are not involved in the same traditional airline alliance used by the traditional airlines to strengthen their position on the market. Little research has been made regarding the benefits for low-cost airlines to engage in strategic alliances. The purpose of this thesis is to evaluate if low-cost airlines benefit from engaging in strategic alliances or collaborations, and identify possible alliance configurations. To fulfill the purpose we have used a qualitative method and case studies. Interviews with respondents from two low-cost airlines as well as an airline industry field expert were used to gather information about the thesis subject. We have concluded that the low-cost airlines in this study benefit from engaging in strategic alliances. The low-cost airlines are using vertical as well as horizontal alliances principally to gain cost-reduction or efficiency benefits. Both cases were against traditional airline alliances due to the high costs involved, and the fact that they do not share the same motives for alliances.

This thesis, which consists of three self-contained essays, examines, both theoretically and empirically, some of the economic and identity strategies and mechanisms that federated co-operatives, in particular, and strategic alliances, in general, can use to achieve co-operation and coordination. To accomplish this objective, the thesis uses a combination of industrial organization and game theory concepts from economics, insights from social and cognitive psychology, and evidence from in-depth interviews with decision-makers in the Co-operative Retailing System (CRS) - an association of 264 independent Western Canadian retail co-operatives and their wholesaler, Federated Co-operatives Ltd. (FCL).<p> Essay One combines a case study of the CRS with an examination, in a game-theoretic framework, of the co-operation and coordination problems arising among firms in alliances and the potential solutions to these problems suggested in the economics and business strategy literatures. One of the contributions of this essay is to provide examples of the mechanisms that can be used to implement these theoretical solutions in a business setting - i.e., the essay identifies practical ways for alliances to alter partner firms' payoffs, to provide private rewards, to monitor behaviour, to establish long term goals among partners, to build high group identification within the alliance, and to focus partners' expectations on the efficient outcomes. Another contribution of this essay is to identify some of the second-order co-operation problems that arise in strategic alliances - e.g., lack of incentives by alliance partners to contribute resources that are necessary to develop alliance management mechanisms - and to offer examples of the strategies that can be used to deal with these problems.<p> Essay Two draws upon social identity theory and develops an economic model of behaviour to show how the core firm in a strategic network can promote effective co-operation among network members by inducing them to identify with the network. In addition, the essay offers empirical evidence from the CRS that identity has successfully been used, together with economic mechanisms, to foster co-operation among member retails, and provides examples of the most important mechanisms that FCL, as the core firm in the CRS, has used to manage the identity of the retails. More generally, by incorporating the psychology (and sociology) of identity into an economic model of behaviour, Essay Two contributes to an emerging view that non-economic (behavioural) factors are complementary to the economic ones in the management of strategic partnerships.<p> Essay Three considers the collective action problems that arise in co-operatives when it comes to financing growth and identifies the conditions under which retained patronage can be an effective way for co-operatives to raise growth capital. The essay develops a game-theoretic model to examine the trade-off between the share of patronage refunds a co-operative wholesaler pays to member retails in cash and the share of patronage refunds it retains and invests, so as to provide retails with enough short-run benefits to encourage them to patronize their organization, while still retaining resources to invest in long-term growth. Analytical results show that when there are increasing returns in patronizing the co-operative wholesaler, retails' decisions to patronize their organization are complementary strategies and, as a result, multiple equilibria are possible. Some of these equilibria are ones with high patronage and high investment, while others are characterized by low patronage and low investment. Retails' expectations about the actions of their counterparts are critical in determining the prevailing equilibrium. The analysis also shows that the existence of the horizon problem further constraints the ability of the wholesaler to raise growth capital. Taken together, these results suggest that the retention of patronage refunds can be an effective way for the co-operative wholesaler to raise growth capital, provided it acts to focus retails' expectations on the 'good' equilibrium and to mitigate the horizon problem.<p> By examining the strategies and mechanisms that the CRS has used to achieve co-operation and coordination, and in so doing illustrating the mechanisms that firms can use to manage partner opportunism and prevent coordination failure, the thesis contributes to the alliance management literature. Firms today are increasingly forming strategic alliances with suppliers, buyers, and even competitors in order to achieve sustainable competitive advantage. However, despite their increasing popularity and value-creation potential, alliances more often fail than succeed, with alliance failure often attributed to opportunistic (non-co-operative) behaviour by one or more of the partners and to coordination failure. As a result, it is important to identify strategies and mechanisms that alliance partners can use to achieve co-operation and coordination, and thus realize the benefits from their association.<p> The thesis also contributes to the co-operative literature by shedding light on the age-old debate on whether federated co-operatives need to be centralized to ensure efficiency. In particular, the thesis shows that federated co-operatives can be efficient, provided they address the co-operation and coordination problems that arise among their members, and provides examples of the mechanisms that federated co-operatives can use to achieve co-operation and coordination. In addition, the thesis offers the first analytical treatment of how the horizon problem influences investment decisions in co-operatives.

In the first part of this thesis, we study revenue management in resource exchange alliances. We first show that without an alliance the sellers will tend to price their products too high and sell too little, thereby foregoing potential profit, especially when capacity is large. This provides an economic motivation for interest in alliances, because the hope may be that some of the foregone profit may be captured under an alliance. We then consider a resource exchange alliance, including the effect of the alliance on competition among alliance members. We show that the foregone profit may indeed be captured under such an alliance. The problem of determining the optimal amounts of resources to exchange is formulated as a stochastic mathematical program with equilibrium constraints. We demonstrate how to determine whether there exists a unique equilibrium after resource exchange, how to compute the equilibrium, and how to compute the optimal resource exchange. In the second part of this thesis, we study the estimation of risk measures in risk management. In the financial industry, sell-side analysts periodically publish recommendations of underlying securities with target prices. However, this type of analysis does not provide risk measures associated with underlying companies. In this study, we discuss linear regression approaches to the estimation of law invariant conditional risk measures. Two estimation procedures are considered and compared; one is based on residual analysis of the standard least squares method and the other is in the spirit of the M-estimation approach used in robust statistics. In particular, Value-at-Risk and Average Value-at-Risk measures are discussed in detail. Large sample statistical inference of the estimators is derived. Furthermore, finite sample properties of the proposed estimators are investigated and compared with theoretical derivations in an extensive Monte Carlo study. Empirical results on the real data (different financial asset classes) are also provided to illustrate the performance of the estimators.

Information from the Human Genome Project is being integrated into the drug discovery and development process to permit novel drug targets to be identified, clinical trial testing to be made more efficient, and efficacious therapeutics to be approved and made widely available. Knowledge of the genome will allow for the description and quantification of disease and susceptibility to disease as informational errors or deficits. The creation and application of knowledge occur through cooperative or competitive interactions, often reflecting the perceived value of the knowledge. The public or private value of the knowledge, both for itself and for potential applications, can be determined through an understanding of the classification and characterization of this knowledge, as well as the position of the knowledge within the drug discovery and development pipeline. The transformation of knowledge from a purely public good to a quasi-private good has highlighted the need for balance between incentives for the market provision of scientific and technological knowledge by an innovator and incentives for the market provision of incremental knowledge by a follow-on developer. It has been suggested that a patent system developed for a discrete model of innovation may no longer be optimal for an information-based, cumulative model of innovation. Consequently, it is necessary to reanalyze models of intellectual property protection and strategies of knowledge sharing in biopharmaceutical discovery research. Under certain conditions, the biotech commons is an efficient institution that can preserve downstream opportunities for multiple researchers fairly and efficiently. A framework for classifying and characterizing discovery knowledge is developed in this research and the role of research consortia in preserving the biotech commons is analyzed. This study also addresses the value of pooling versus unilaterally holding knowledge, the benefits associated with appropriating from the commons, the role of knowledge characteristics in bargaining between licensor and licensee, and the overall management of the biotech commons.

Fueled by ubiquitous access to mobile phones, and a massive population of nearly 3 billion unbanked people around the globe, mobile commerce is evolving as a disruptive technology. Simultaneously, mobile payments are surfacing as a killer application within the mobile commerce context (Hu et al. 2008). Undeniably, the proliferation of wireless mobile technology provides much-needed access to vital information, and financial services for disenfranchised, unbanked populations. In addition, technological innovations offer first-time opportunities for suppliers of goods and services in a market context to gain competitive advantages while enhancing their economic viability. According to Portio Research, the volume of mobile payments rose significantly from $68.7 billion U.S. dollars in 2009, with predictions of $633.4 billion U.S. dollars by the end of 2014 (mobithinking.com 2012). Despite exponential growth in the number of mobile subscribers globally, and widespread adoption of mobile commerce, acceptance rates for mobile payment applications have lagged (Dahlberg et al. 2007, Ondrus et al 2009, Ondrus and Lyytinen 2011). Yet examinations of factors inhibiting the widespread acceptance of mobile payments are relatively sparse. Using Social Network theory, this research examines factors affecting engagement in mobile payments. The researcher posits that four primary elements influence mobile payment engagement: 1) the relationships between and amongst inter-organizational alliance members; 2) the prevailing regulatory environment; 3) the state of existing banking and technology infrastructures, and 4) an assessment of economic opportunity. The research outcomes from this exploratory examination led to the development of a comprehensive model for mobile payment engagement, and strongly suggest that ties between and amongst firms in inter-organizational alliances help ensure the success of mobile payment engagement. Support was found for the following suppositions: 1) similarities and relations (continuous ties) help establish a framework and understanding amongst alliance members as to each party’s goals and objectives; and 2) interactions and flows (discrete ties) between and amongst inter-organizational alliance members strengthen the overall ties between alliance members while solidifying a viable working relationship amongst the alliance members. This study employs a qualitative approach to obtain real world insight into the dynamism of the mobile payment arena. A model is then proposed to practically examine mobile payment engagement opportunities. From a theoretical perspective, the research contributes to the extant scholarly knowledgebase pertaining to engagement in mobile payments.

There is a large body of research supporting the importance of market orientation in determining performance. A growing body of research supports the notion that strategic alliance management competencies positively influence performance. Few empirical investigations have examined the importance of market orientation in the biotechnology industry, much less the effect of alliance orientation on performance, or the combined effect of market and alliance orientation on performance. This study explores these relationships among Canadian biotechnology companies with medical/healthcare focuses. Of the 394 Canadian medical/healthcare biotechnology companies identified, 81 usable responses were received, yielding a response rate of 20.6 percent. It was found that market orientation positively and significantly influenced business performance, supporting the first hypothesis. Additionally, alliance orientation positively and significantly influenced business performance, supporting the second hypothesis. However, when market and alliance orientation were examined together, alliance orientation’s effect on business performance remained positive and significant, but market orientation’s effect on business performance became negative and non-significant. This prompted a further analysis that investigated the presence of a mediation relationship. Market orientation was fully mediated by alliance orientation in its relationship with business performance. This study contributes academically by adding to market and alliance orientation research and by the successful development of a biotechnology-specific performance instrument. This study contributes to marketing and management strategy, as it outlines performance indicators that enable high performance.

Information from the Human Genome Project is being integrated into the drug discovery and development process to permit novel drug targets to be identified, clinical trial testing to be made more efficient, and efficacious therapeutics to be approved and made widely available. Knowledge of the genome will allow for the description and quantification of disease and susceptibility to disease as informational errors or deficits. The creation and application of knowledge occur through cooperative or competitive interactions, often reflecting the perceived value of the knowledge. The public or private value of the knowledge, both for itself and for potential applications, can be determined through an understanding of the classification and characterization of this knowledge, as well as the position of the knowledge within the drug discovery and development pipeline. The transformation of knowledge from a purely public good to a quasi-private good has highlighted the need for balance between incentives for the market provision of scientific and technological knowledge by an innovator and incentives for the market provision of incremental knowledge by a follow-on developer. It has been suggested that a patent system developed for a discrete model of innovation may no longer be optimal for an information-based, cumulative model of innovation. Consequently, it is necessary to reanalyze models of intellectual property protection and strategies of knowledge sharing in biopharmaceutical discovery research. Under certain conditions, the biotech commons is an efficient institution that can preserve downstream opportunities for multiple researchers fairly and efficiently. A framework for classifying and characterizing discovery knowledge is developed in this research and the role of research consortia in preserving the biotech commons is analyzed. This study also addresses the value of pooling versus unilaterally holding knowledge, the benefits associated with appropriating from the commons, the role of knowledge characteristics in bargaining between licensor and licensee, and the overall management of the biotech commons.

This thesis, which consists of three self-contained essays, examines, both theoretically and empirically, some of the economic and identity strategies and mechanisms that federated co-operatives, in particular, and strategic alliances, in general, can use to achieve co-operation and coordination. To accomplish this objective, the thesis uses a combination of industrial organization and game theory concepts from economics, insights from social and cognitive psychology, and evidence from in-depth interviews with decision-makers in the Co-operative Retailing System (CRS) - an association of 264 independent Western Canadian retail co-operatives and their wholesaler, Federated Co-operatives Ltd. (FCL).<p> Essay One combines a case study of the CRS with an examination, in a game-theoretic framework, of the co-operation and coordination problems arising among firms in alliances and the potential solutions to these problems suggested in the economics and business strategy literatures. One of the contributions of this essay is to provide examples of the mechanisms that can be used to implement these theoretical solutions in a business setting - i.e., the essay identifies practical ways for alliances to alter partner firms' payoffs, to provide private rewards, to monitor behaviour, to establish long term goals among partners, to build high group identification within the alliance, and to focus partners' expectations on the efficient outcomes. Another contribution of this essay is to identify some of the second-order co-operation problems that arise in strategic alliances - e.g., lack of incentives by alliance partners to contribute resources that are necessary to develop alliance management mechanisms - and to offer examples of the strategies that can be used to deal with these problems.<p> Essay Two draws upon social identity theory and develops an economic model of behaviour to show how the core firm in a strategic network can promote effective co-operation among network members by inducing them to identify with the network. In addition, the essay offers empirical evidence from the CRS that identity has successfully been used, together with economic mechanisms, to foster co-operation among member retails, and provides examples of the most important mechanisms that FCL, as the core firm in the CRS, has used to manage the identity of the retails. More generally, by incorporating the psychology (and sociology) of identity into an economic model of behaviour, Essay Two contributes to an emerging view that non-economic (behavioural) factors are complementary to the economic ones in the management of strategic partnerships.<p> Essay Three considers the collective action problems that arise in co-operatives when it comes to financing growth and identifies the conditions under which retained patronage can be an effective way for co-operatives to raise growth capital. The essay develops a game-theoretic model to examine the trade-off between the share of patronage refunds a co-operative wholesaler pays to member retails in cash and the share of patronage refunds it retains and invests, so as to provide retails with enough short-run benefits to encourage them to patronize their organization, while still retaining resources to invest in long-term growth. Analytical results show that when there are increasing returns in patronizing the co-operative wholesaler, retails' decisions to patronize their organization are complementary strategies and, as a result, multiple equilibria are possible. Some of these equilibria are ones with high patronage and high investment, while others are characterized by low patronage and low investment. Retails' expectations about the actions of their counterparts are critical in determining the prevailing equilibrium. The analysis also shows that the existence of the horizon problem further constraints the ability of the wholesaler to raise growth capital. Taken together, these results suggest that the retention of patronage refunds can be an effective way for the co-operative wholesaler to raise growth capital, provided it acts to focus retails' expectations on the 'good' equilibrium and to mitigate the horizon problem.<p> By examining the strategies and mechanisms that the CRS has used to achieve co-operation and coordination, and in so doing illustrating the mechanisms that firms can use to manage partner opportunism and prevent coordination failure, the thesis contributes to the alliance management literature. Firms today are increasingly forming strategic alliances with suppliers, buyers, and even competitors in order to achieve sustainable competitive advantage. However, despite their increasing popularity and value-creation potential, alliances more often fail than succeed, with alliance failure often attributed to opportunistic (non-co-operative) behaviour by one or more of the partners and to coordination failure. As a result, it is important to identify strategies and mechanisms that alliance partners can use to achieve co-operation and coordination, and thus realize the benefits from their association.<p> The thesis also contributes to the co-operative literature by shedding light on the age-old debate on whether federated co-operatives need to be centralized to ensure efficiency. In particular, the thesis shows that federated co-operatives can be efficient, provided they address the co-operation and coordination problems that arise among their members, and provides examples of the mechanisms that federated co-operatives can use to achieve co-operation and coordination. In addition, the thesis offers the first analytical treatment of how the horizon problem influences investment decisions in co-operatives.

Pharmaceutical companies experience new challenges in the face of steadily increasing costs for drug production coupled with a decrease in the number of approved drugs. While the pharmaceutical industry remains tentative in Sweden, it is extensively growing in China. Chinese businesses are now on the lookout for foreign experience and know-how in production and R&amp;D. This provides an opportunity for both parties to engage in strategic alliances. Nevertheless, strategic alliances present risks that partner firms need to be aware of. This study investigates how Swedish pharmaceuticals can manage perceived risks when cooperating with Chinese pharmaceutical firms. Through academic journals, two main mechanisms were identified as being of particular influence in the management of perceived risk: trust and control. A qualitative study of nine interviews was conducted in order to determine how Swedish pharmaceutical companies manage risk when engaging in strategic alliances with Chinese partners. Six men and women employed in three different pharmaceutical companies were interviewed along with three experts from the industry. The empirical investigation results in a description of a sequence of trust-enhancing activities and control mechanisms. Network and communication are found to be essential trust-enhancing activities, enabled by a Chinese employee. The study conclusively determines that a Chinese connector is the key in the management of perceived risk.