Short- and long-term market returns of international codevelopment alliances of new products

  • Nukhet HarmanciogluEmail author
  • David A. Griffith
  • Tuba Yılmaz
Original Empirical Research


Strategic alliances entail process-oriented decisions, in which information about outcomes is unveiled over time. Therefore, it is difficult for investors to gauge the value of such decisions in the short term; longitudinal analysis is necessary. Accordingly, the authors apply latent growth modeling to a data set of 270 international codevelopment alliances announced over an 18-year period. The results demonstrate that investors reward firms for their international codevelopment alliances in the short term but punish them in the long term. Initially, exchange conditions have positive effects, but these effects decrease over time. However, the decrease slows when firms’ market updates contain positive news. Although investors view sharing of innovation resources as a competitive advantage in the short term, they perceive exchange conditions as transaction hazards in the long term. The results also show that long-term decreases in market returns are greater when codevelopment activities are conducted offshore rather than onshore.


International codevelopment alliance New products Event study analysis Latent growth analysis 



The authors would like to acknowledge the Marie Curie Actions Research Fellowship Program, Product Development and Management Association and Academy of Marketing Science for their support. In addition, the authors would like to thank Steven H. Seggie, Stefan Wuyts and the attendees of the Ozyegin University Interorganizational Marketing Research Camp and the 2015 Theory and Practice in Marketing Conference for their comments on prior versions of this manuscript.

Supplementary material

11747_2018_622_MOESM1_ESM.docx (65 kb)
ESM 1 (DOCX 64 kb)


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Copyright information

© Academy of Marketing Science 2019

Authors and Affiliations

  • Nukhet Harmancioglu
    • 1
    Email author
  • David A. Griffith
    • 2
  • Tuba Yılmaz
    • 3
  1. 1.College of Administrative Sciences & EconomicsKoc UniversityIstanbulTurkey
  2. 2.Mays Business SchoolTexas A&M UniversityCollege StationUSA
  3. 3.Department of MarketingBI Norwegian SchoolOsloNorway

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