Effects of functional focus on bounded momentum: Examining firm- and industry-level alliances. (May 2018)

• Record Type: Journal Article
• Authors: Park, Namgyoo K.; Martin, Xavier; Lee, Jinju; Mezias, John M.
• Is Part Of: Strategic organization. Volume 16:Number 2(2018)
• Page Start: 167
• Page End: 191
• Publication Date: 2018-05
• Subjects: airline industry -- cross-border alliance formation -- functional types -- strategic momentum; Management -- Periodicals; Organization -- Periodicals; Business planning -- Periodicals; Strategic planning -- Periodicals; Gestion stratégique; Planification stratégique; Théorie des organisations; Périodique électronique (Descripteur de forme); Ressource Internet (Descripteur de forme); 658.4012
• DOI: 10.1177/1476127017696282
• Languages: English
• ISSNs: 1476-1270

Abstract

Building on strategic momentum and alliance studies, we theoretically explain and test the non-monotonicity of the alliance momentum of same- or cross-functional-type alliances. We theorize about critical drivers that generate bounded momentum and further argue whether function-specific momentum occurs sequentially or simultaneously. We examine cross-border alliances of 32 international airlines from 1945 to 1994 and find that the inverted U-shaped pattern of alliance momentum holds for same-type but not for cross-type alliances at both the firm and industry levels. These findings imply that alliance momentum with a specific functional focus evolves sequentially rather than simultaneously.