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Rui Xue [Department of Applied Finance, Macquarie University, Sydney,
Australia] Lee Li [School of Administrative Studies, York University, Toronto, Canada]
This study aims to propose that, in business-to-business [B2B] industries, number of strategic alliances firms established before a “black swan” event enhances their chances to survive the black swan, and the enhancements take place through moderation effects. Changes in firms’ core structures – their stated goals, authority structure, core technologies and marketing strategies – to
adapt to business jolts have adverse effects on firm performance. Firms’ existing B2B strategic alliances moderate the effects negatively by outsourcing different goals, authority structures, core technologies and marketing strategies to partners who fit the changed environment.Abstract
Purpose
Design/methodology/approach
This study collected quantitative data and analyzed the data with the regression method.
Findings
Using data from Chinese firms in five technology industries during the 2007–2009 economic crisis, this study finds that firms’ internal adaptation is negatively correlated with their performance during economic crises, and B2B strategic alliances negatively moderate this relationship.
Research limitations/implications
First, this study focuses on B2B strategic alliances, and it is not clear whether the findings apply to B2C industries, where strategic alliances may not be common. Perhaps firms can use other means of survival in addition to strategic alliances in B2C industries. Second, this study does not differentiate between fast-moving and slow-moving industries, and it is not clear whether strategic alliances play the same role in both industries. Third, this study does not differentiate firm ages and sizes. It remains unclear how large, established and small, young firms differ when facing crises. Finally, this study is based on the Chinese setting, and it is not clear whether the findings apply to other markets as well. These issues should be explored in future studies.
Practical implications
Changing firms’ core structures harms their performance during black swan crises because such crises are unpredictable, and planned changes may not adapt firms to crises. Managers should not attempt to change their core structures during crises. B2B strategic alliances provide an effective means for firms to survive crises.
Originality/value
This paper makes two contributions to the existing literature: First, this paper demonstrates that changes of one of the four core structures of a firm to cope with black swan events have negative impacts on firm performance. Second, this paper identifies the importance of holding a variety of strategic alliances previously to the black swan events to reduce the negative impacts of changing core structures.
Keywords
- Firm performance
- Strategic alliances
- Survival
- B2B industries
- Unexpected crises
Acknowledgements
Disclosure statement: The authors reported no potential conflict of interest.
Citation
Xue, R. and Li, L. [2022], "Strategic alliances and firms’ chances to survive “black swans” in B2B industries", Journal of Business & Industrial Marketing, Vol. ahead-of-print No. ahead-of-print. //doi.org/10.1108/JBIM-12-2019-0530
Publisher
:Emerald Publishing Limited
Copyright © 2022, Emerald Publishing Limited
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