Description
Zhibin (Ben) Yang, Ph.D.
Associate Professor of Operations and Business Analytics
Lundquist College of Business, University of Oregon
“Harnessing Complementary Strengths with a Joint Venture under Competition and Brand Spillover”
Firms with complementary strengths often collaborate to form a joint venture for market success. Such strategic alliances, however, are vulnerable to internal conflicts of interest. In this research, we consider the strategic alliance between a firm with a strong technology (technology firm) aspiring for success of its private brand and a firm with a strong brand (brand firm). We focus on two common forms of conflicts of interest: market competition between the joint venture and the technology firm; and brand spillover from the brand firm to the technology firm, which strengthens the latter's competitiveness in the market. We create a game theoretic model of two stages. In stage 1, the technology firm and the brand firm negotiate their share of ownership in the joint venture. In stage 2, the technology firm and the joint venture sell to the market, when they engage in competition under the influence of brand spillover. We find that competition reduces the two parent firms' profit and pivots the joint venture's ownership structure towards the technology firm. Interestingly, brand spillover is beneficial to the brand firm because it softens the technology firm’s stance in negotiation. The positive effect of brand spillover may be strong enough to reverse the negative effect of competition, making conflicts of interest overall beneficial for both parent firms.
Biography
Zhibin (Ben) Yang is an associate professor in the Department of Operations and Business Analytics and Edwin E. and June Woldt Cone Research Scholar at the Lundquist College of Business. His expertise includes production and operations management, supply chain management, and machine learning. His research on these topics has been published in publications including Management Science, Manufacturing & Service Operations Management, and Handbook of Information Exchange in Supply Chain Management. Yang received his PhD in industrial and operations engineering from the University of Michigan. Prior to attending graduate school, he worked as an engineer, technical salesperson, and technical consultant in China for six years.
Harnessing Complementary Strengths with a Joint Venture under Competition and Brand Spillover
Location
BB 4.02.10
Category:
Campus Events
