Information rules: a strategic guide to the network economy
Information rules: a strategic guide to the network economy
Bundling Information Goods: Pricing, Profits, and Efficiency
Management Science
Design Rules: The Power of Modularity Volume 1
Design Rules: The Power of Modularity Volume 1
Innovation and Control in Standards Architectures: The Rise and Fall of Japan's PC-98
Information Systems Research
From Airline Reservations to Sonic the Hedgehog: A History of the Software Industry
From Airline Reservations to Sonic the Hedgehog: A History of the Software Industry
Analyzing Complementarities Using Software Stacks for Software Industry Acquisitions
Journal of Management Information Systems
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Successful companies in the information technology sector pursue alliances and acquisitions as a way to compete and grow. It is, however, not clear if these strategies work in all situations. In this study we look at 103 alliances in the packaged software industry over a period of four years (1999-2002). Combining the economic theory of complementarities with a concept that captures the relationship between software products offered by firms to the market called software stack, we show how firms create value using alliances. Applying the events studies methodology, our analysis shows that firms generate greater value when forming alliances within the same layer of the stack when compared to results from alliances made across layers. This finding is opposite to what was found in the case of mergers and acquisitions. We discuss the implications of our findings.