An Alliance Network View of Stock Market Responses to Alliances

There has been no attempt to explain the variation in stock market responses to alliance announcements in an era of industry ferment, to reflect the benefits and costs associated with the evolving structural topologies of firms' alliance networks. This study investigates such effects using data from firms in the UK biotechnology industry in 1986-2000, an era of industry ferment, at the ego-network and the 'whole'-network level. The findings highlight the value of managing a firm's alliance ego-network as a strategic tool that provides network resources but also affects others' perceptions of a firm's resources and growth prospects.

Autorentext

Anastasios G. Karamanos holds a PhD in Strategic Management from Cambridge Judge Business School, University of Cambridge. His research has appeared in the Journal of Management Studies, R&D Management, European Planning Studies, Les Echos, and the Acedemy of Management Conferences. He teaches strategy and innovation to MBA students and executives.