Above all, both the sample firms suitable to extend emergent theory (). Sunyard and Grundfos made a successful entry into new segment of business by alliance participation. What they leveraged is their initial partner’s status that is a sort of nonshared network resource. Moreover, both the sample firms provide examples of polar types () that contributes to a comparative study. Sunyard made a market entry by alliance with his supplier, whereas Grundfos entered a new segment of business by allianced with an embeded partner. Thus, Sunyard and Grundfos represent symbiotic interdependence and partner interdependence respectively. Within each firm, first, we asked the executives to summarize the strategic objectives, importance, complexity and resources when they determined to enter the target new segment of business by alliance particitation. This questioning enabled us to idenify the nonshared network resource in their initial patnership. Second, we asked them to the disadvantages and advantages that they faced and strategic actions they took in order to examine how they leveraged such resource to ensure endorcement by their environment. Table 1 summerizes the characteristcs of focal firms and their initial partners. Table 1 Overview of the Focal Firms and Their Partners Firm Business Areas Founding Date Revenuesa Number of Informants Interviewedb Informants Interviewed by Type Initial partner Sunyard Financial Software 1996 ¥ 924 million 5 Corporate Executive: 2 General Manager: 3 ICBC Grundfos Pump 1945 ¥ 36.7 billion 8 Corporate executive: 3 General manager: 5 Huangming a: The data is searched in the firms’ annual report in 2013 b: Several informants were interviewed more than once, with over XXX interviews being conducted among the three cases.
Table 2 Competitive advantages of focal firms Firm First Stage Second Stage Financial, Market, & Strategic Outcomes Representative Informant Quotes Partner Prior Interactions Target Strategic Objective Sunyard ICBC Technology and Product Development Regional Banks Expansion in Regional Bank Market In 2011, Sunyard provided operational management solution for ICBC, and later applied it to some regional banks, including China Merchants Bank, China Guangfa Bank, Huishang Bank and Bank of Dalian. Sunyard applied its document management solution to numbers of regional banks, such as Bank of Beijing, Bank of Hangzhou, Wuhan Rural Commercial Bank and Bank of Quanzhou. “The market share of our product is 80%-90%.” (interview, General Manager, Division of Operational Management Solution, Sunyard, May 19, 2014) “when I read news on bank rate transactions of regional banks in China , I found all the banks listed are our clients.” (interview, Director, R&D Center, Sunyard, April 1, 2014). “From a revenue standpoint, the outcomes are far beyond our initial expectation.” (interview, General Manager, Division of Operational Management Solution, Sunyard, May 19, 2014) Grundfos Himin Solar Corporation Discussions Product development Tapping into the Chinese solar industry Through the technological partnership, Grundfos and Himin jointly developed a new solar heating system, in which Grundfos’ variable pump technology is integrated. The new solar system significantly improves consumer experience and energy efficiency.
Table 3 Linkage: forming foundational ties with benchmarkers Firm Product Target Industry First Ties Date of First Ties Actions Portfolio Consequences Financial Consequences Typical Quotes Sunyard Document Processing System Bank industry ICBC 1996 In 1996, launched the Document Processing System which was the first electronic document processing system in the banking industry in China and was adopted by ICBC headquarters. Visible signals of strategic intent and capabilities for market entry were sent to the potential customers. Financially successful Document Processing System that rode revenue surge in 1997. Our initial strategy was market orientation by reinforcing benchmarking customer management. (VP)