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tact (MMC) between partners on strategic alliance sur- vival is unclear, even though recent studies have suggested that MMC increases the likelihood of alliance formation.Managerial Summary: Recent research has shown that firms encountering each other in multiple markets are more likely to form strategic alliances, but it is unclear whether these firms are likely to stick together.Our study investigates this issue by integrat- ing two mechanisms occurring between multimarket firms: mutual forbearance and technological resource imitation.
tact (MMC) between partners on strategic alliance sur-
vival is unclear, even though recent studies have
suggested that MMC increases the likelihood of alliance
formation. Our study investigates this issue by integrat-
ing two mechanisms occurring between multimarket
firms: mutual forbearance and technological resource
imitation. We argue that MMC between partners deters
opportunism in alliances via mutual forbearance,
resulting in a positive effect on the likelihood of strate-
gic alliance survival. We also suggest that the positive
effect is weakened in two settings with higher risks of
technological resource imitation: technological overlap
between partners and the presence of R&D activities in
an alliance. Evidence from strategic alliances in the
global semiconductor industry supports these
conclusions.
Managerial Summary: Recent research has shown
that firms encountering each other in multiple markets
are more likely to form strategic alliances, but it is
unclear whether these firms are likely to stick together.
Our theory suggests that the threat of broad retaliation
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