The Impact of Firm Speed Capabilities on the Decision to Partner or Go It Alone

Abstract

This study empirically examines the role of intrinsic speed capabilities, which refer to the ability to execute investment projects faster than competitors, in shaping corporations’ choice of alliances versus autonomous project development. Our basic premise is that firms lacking intrinsic speed capabilities (i.e., slow firms) are more likely to turn to alliances to supplement their capability deficiency. However, we expect that the ability of slow firms to partner with fast firms hinges on the former’s possession of complementary supporting assets. Our empirical analyses furnish evidence supporting these ideas using data from the global liquefied natural gas industry.