Escaping Bear Hugs: A New Venture's Network Building and the Effects on Its Bargaining Power

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dc.contributor.advisorLi, Haiyangen_US
dc.contributor.committeeMemberHoskisson, Roberten_US
dc.creatorLi, Tobyen_US
dc.date.accessioned2019-05-17T18:58:06Zen_US
dc.date.available2019-05-17T18:58:06Zen_US
dc.date.created2019-05en_US
dc.date.issued2019-04-19en_US
dc.date.submittedMay 2019en_US
dc.date.updated2019-05-17T18:58:06Zen_US
dc.description.abstractA new supplier having a more prominent client, while critical for its survival and growth, also results in weaker bargaining power to appropriate value through that client. Prior literature has focused primarily on the weaker supplier growing the number of network clients to strengthen its bargaining power, without distinguishing the types of clients needed. This paper proposes two network-based solutions for the weaker supplier that draw on resource dependence theory (RDT) and the resource-based view (RBV): 1) building a 'competing' network of multilaterally rival clients to reduce dependency on its focal client, or 2) developing a ‘learning’ network of diverse clients to enhance its value to its focal client, respectively. This paper also explores the challenges for the supplier in accessing each network type to draw dyadic-level bargaining power. A supplier accessing a 'competing' network - based on dependence reduction using similar resources - results in more immediate short-run bargaining advantage, but not in the long run due to limited diverse learning. Meanwhile, a supplier accessing a 'learning' network - based on enhancing value by acquiring more heterogeneous knowledge resources – this results in more sustainable long-run bargaining advantage, but it can sacrifice more immediate short-run gains due to initial integration adjustments needed for diverse learning. This paper thus reflects the inherent tradeoffs in pursuing either an RDT or RBV-based bargaining solution. We test and find support for these predictions using supplier driller – client operator partnerships in the oil-gas industry as our empirical context.en_US
dc.format.mimetypeapplication/pdfen_US
dc.identifier.citationLi, Toby. "Escaping Bear Hugs: A New Venture's Network Building and the Effects on Its Bargaining Power." (2019) Diss., Rice University. <a href="https://hdl.handle.net/1911/105974">https://hdl.handle.net/1911/105974</a>.en_US
dc.identifier.urihttps://hdl.handle.net/1911/105974en_US
dc.language.isoengen_US
dc.rightsCopyright is held by the author, unless otherwise indicated. Permission to reuse, publish, or reproduce the work beyond the bounds of fair use or other exemptions to copyright law must be obtained from the copyright holder.en_US
dc.subjectbargaining poweren_US
dc.titleEscaping Bear Hugs: A New Venture's Network Building and the Effects on Its Bargaining Poweren_US
dc.typeThesisen_US
dc.type.materialTexten_US
thesis.degree.departmentManagementen_US
thesis.degree.disciplineBusinessen_US
thesis.degree.grantorRice Universityen_US
thesis.degree.levelDoctoralen_US
thesis.degree.nameDoctor of Philosophyen_US
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