Do Major Customer Relationships Enhance the Performance of Strategic Alliances in High Tech Industries?
This study examines the impact of major customer relationships on high-tech firms’ financial performance over the period 1988 to 2004. We categorize firms into partnering and non-partnering groups based on whether the firm reports a major customer relationship under FAS 14 (superseded by FAS 131) and subdivide the partnering firms sub-sample based on whether those firms also announced alliances. We find little evidence that either partnership arrangement improves operating performance, although before entering partnerships, partnering firms tend to perform better than non-partnering firms. When firms with major customer relationships discontinue those relationships, operating performance worsens regardless of alliance status. Sponsors: Oklahoma State University, University of Arkansas, California State University Long Beach PIs: Angela Wheeler Spencer University of Arkansas: Carolyn M. Callahan California State University Long Beach: Rod Smith An Examination of the Valuation Impact of
