The impact of relational and structural embeddedness on alliance termination outcomes
relational
The unique historical conditions under which the resources are
accumulated within firms deter imitation by competitors (Arthur 1989). Organizational
culture (Barney 1986a), costumer trust (Itami 1987), reputation (Klein & Leffler 1981) and first mover advantage (Lieberman & Montgomery 1988) are examples of such path
dependencies.
A common form of path dependence is what Derickx and Cool (1989) refer
to as “time compression diseconomies”. The development of a capability given a fixed
amount of investment will be slower when the investment is made over a shorter period.
Consequently, ceteris paribus, leading firms may be able to sustain their advantage.