Skip to main content
  • Research Article
  • Published:

How to improve the performance of R&D alliance? An empirical analysis based on China’s pharmaceutical industry

Abstract

The separation of science resources and the manufacturing industry in China has given rise to R&D alliances between R&D institutes and sponsoring enterprises. As a result, R&D alliance of various types has become a main route of technology innovation in China. Drawing upon relevant literature on R&D alliance management, this research empirically explores the impacts of relationship pattern, control strategy chosen by sponsoring enterprises, and alliance members’ continuity expectation on alliance performance. Results show that motivation-based alliance control approaches, including proper allocation of alliance control rights, sustained strengthening of alliance members’ continuity expectation, and enhancement of mutual relationship and friendship among alliance members, are more effective than process or outcome control approaches for improving alliance performance.

References

  • Aghion P, Tirole J (1994). On the management of innovation. Quarterly Journal of Economics, 109: 1185–1209

    Article  Google Scholar 

  • Anderson J C, Narus J A (1990). A model of distributor firm and manufacturing firm working partnerships. Journal of Marketing, 54: 42–58

    Article  Google Scholar 

  • Andrew C I, Currall S C (2004). The coevolution of trust, control, and learning in joint ventures. Organization Science, 15(5): 586–599

    Article  Google Scholar 

  • Aulakh P, Kotabe M, Sahay A (1996). Trust and performance in cross-border marketing partnerships: A behavioral approach. Journal of International Business Studies, 27(5): 1005–1032

    Article  Google Scholar 

  • Das T K, Teng B S (2001). Trust, control, and risk in strategic alliances: An integrated framework. Organization Studies, 22(2): 251–283

    Article  Google Scholar 

  • Dwyer F, Schurr R, Paul H, Oh S (1987). Developing buyer-seller relationships. Journal of Marketing, 51(April): 11–28

    Article  Google Scholar 

  • Eccles R G, Crane D B (1987). Managing through networks in investment banking. California Management Review, 30(1): 176–195

    Google Scholar 

  • Eisenhardt K M (1985). Control: Organizational and economic approaches. Management Science, 31(2): 134–149

    Article  Google Scholar 

  • Grossman S, Hart O (1986). The costs and benefits of ownership: A theory of vertical and lateral integration. Journal of Political Economy, 94(4): 691–719

    Article  Google Scholar 

  • Gulati R (1995). Does familiarity breed trust? The implications of repeated ties for contractual choice in alliances. Academy of Management Journal, 38: 85–112

    Article  Google Scholar 

  • International Institute for Management Development (IMD) (2003). World Competitiveness Yearbook International Institute for Management Development (IMD) (2005). World Competitiveness Yearbook

  • Jonathan L (2003). Relational incentive contracts. The American Economic Review, 93(3): 835–857

    Article  Google Scholar 

  • Lerner J, Merges R P (1998). The control of technology alliances: An empirical analysis of the biotechnology industry. The Journal of Industrial Economics, 46(2): 125–156

    Google Scholar 

  • Lui S, Ngo H (2004). The role of trust and contractual safeguards on cooperation in non-equity alliance. Journal of Management, 30(4): 471–485

    Article  Google Scholar 

  • Macneil I R (1978). Contracts: Adjustment of long-term economic relations under classical and relational contract law. Northwestern University Law Review, 72(6): 854–905

    Google Scholar 

  • Moorman C, Deshpandé R, Zaltman G (1993). Factors affecting trust in market research relationships. Journal of Marketing, 57(1): 81–101

    Article  Google Scholar 

  • Morgan R M, Hunt S D (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3): 20–38

    Article  Google Scholar 

  • OECD (1991). The nature of innovation and the evolution of the productive system. technology and productivity-The challenge for economic policy. Paris: OECD, 14–303

    Google Scholar 

  • Ouchi W (1979). A conceptual framework for the design of organizational control mechanisms. Manage Science, 25: 833–848

    Article  Google Scholar 

  • Poppo L, Zenger T (2002). Do formal contracts and relational governance function as a substitutes or complements? Strategic Management Journal, 23: 707–725

    Article  Google Scholar 

  • Lui S S, Ngo H Y (2004). The role of trust and contractual safeguards on cooperation in non-equity alliances. Journal of Management, 30(4): 471–485

    Article  Google Scholar 

  • Williamson O E (1991). Transaction cost economics and organization theory. Industrial and Corporate Change, (2): 107–156

  • 刘 学 (Liu Xue) (2001). 企业技术的获得: 内部化与市场的优劣势比较 (Getting technologies: A comparison between advantages and disadvantages of internalization and market). 科技导报, (8): 38–41

  • 刘 学, 马 宏建 (Liu Xue, Ma Hongjian) (2004). 研究开发联盟中的控制权配置: 中国制药产业的研究 (Control rights allocation in R&D alliance: Research of China’s pharmaceutical industry). 数量经济技术经济研究, (6): 28–38

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Xiaofeng Xiang.

Additional information

__________

Translated from Guanli Xuejia 管理学家 (学术版) (Management Magazine (Academic)), 2008, (4): 316–326

Rights and permissions

Reprints and permissions

About this article

Cite this article

Liu, X., Xiang, X., Jiang, L. et al. How to improve the performance of R&D alliance? An empirical analysis based on China’s pharmaceutical industry. Front. Bus. Res. China 4, 130–147 (2010). https://doi.org/10.1007/s11782-010-0006-2

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11782-010-0006-2

Keywords