Healthcare Pop-Up Seminar

Time:
-
Cost:
FREE
Location:

Carlson School of Management, Room 2-207

The Business Advancement Center for Health (BACH) at the Carlson School will regularly feature doctoral students as they present their research in healthcare. This series encourages students and faculty to share insights and feedback on current work. 

The December seminar will showcase Sohyun Park, a PhD candidate in Strategic Management & Entrepreneurship at the Carlson School of Management. Ms. Park will present her research on the value of maintaining strategic alliances with existing business partners on firms’ product development and entry to the market, specifically examining the pharmaceutical industry. 

Join us to share your feedback and advice with Ms. Park as she prepares for the next step in her career in academia.

Advanced RSVP is requested: email csombach@umn.edu to RSVP. 

 

Sohyun Park

Existing Partner but from Somewhere Else: Market Entry Through Repeated Alliances

Author: Sohyun Park

 

 

The extant literature on strategic alliances show that firms often repeat alliances with their existing partners to grow and perform better. However, it has been implicitly assumed in the existing studies that firms look for alliance partners in the same market as before, even though multi-business firms often enter new markets. In this study, I propose that firm’s existing partners from old markets can be valuable resources for product market entry. Firms are more likely to choose existing partners from old markets than new partners when the existing partners have relevant product development experience or technological knowledge in new market. In addition, there can be positive spillovers effect from repeated alliances in new markets to the existing alliances. Thus, I argue that firms are more likely to enter new markets through repeated alliances when the existing alliances are valuable; partners have high levels of technological knowledge in the old markets of alliances. Last, I suggest that these two different benefits of market entry through repeated alliances are substitutive. I test these ideas in the U.S. pharmaceutical industry, using detailed data on the activities of 1,400 firms in 15 therapeutic areas from 1986 to 2019.