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To partner or to acquire? A longitudinal study of alliances in the shipping industry

To partner or to acquire? A longitudinal study of alliances in the shipping industry How do firms in the liner shipping industry choose between partnerships and acquisitions? In this longitudinal empirical study, we examine dyadic partnerships and acquisitions that took place in the liner shipping industry from 1994 to 2006. We identify and test specific factors that influence liner shipping firms in their strategic choice between partnerships and acquisitions. Using Cox regressions for our analyses, we find that two factors, the extent of redundant resources and the intensity of competition, increase the likelihood of the choice of acquisition, while a third factor, the nature of resources, affects the likelihood of acquisition in an inverted-U shaped (∩) manner. In addition, the home region of a firm and prior acquisition experience increases the probability of acquisitions while prior partnership experience decreases it. The level of synergy and degree of market uncertainty do not affect the mode of alliance choice. We discuss the implications of our findings for the “partner versus acquire” strategic decision made by liner shipping firms. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Maritime Policy & Management Taylor & Francis

To partner or to acquire? A longitudinal study of alliances in the shipping industry

Maritime Policy & Management , Volume 38 (2): 18 – Mar 1, 2011
18 pages

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References (40)

Publisher
Taylor & Francis
Copyright
Copyright Taylor & Francis Group, LLC
ISSN
1464-5254
eISSN
0308-8839
DOI
10.1080/03088839.2011.556677
Publisher site
See Article on Publisher Site

Abstract

How do firms in the liner shipping industry choose between partnerships and acquisitions? In this longitudinal empirical study, we examine dyadic partnerships and acquisitions that took place in the liner shipping industry from 1994 to 2006. We identify and test specific factors that influence liner shipping firms in their strategic choice between partnerships and acquisitions. Using Cox regressions for our analyses, we find that two factors, the extent of redundant resources and the intensity of competition, increase the likelihood of the choice of acquisition, while a third factor, the nature of resources, affects the likelihood of acquisition in an inverted-U shaped (∩) manner. In addition, the home region of a firm and prior acquisition experience increases the probability of acquisitions while prior partnership experience decreases it. The level of synergy and degree of market uncertainty do not affect the mode of alliance choice. We discuss the implications of our findings for the “partner versus acquire” strategic decision made by liner shipping firms.

Journal

Maritime Policy & ManagementTaylor & Francis

Published: Mar 1, 2011

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