Cooperative Experience, Organizational Slack And Focal Firms’ Value Creation

Value creation is a central topic in the strategic management literature. As more and more companies take advantage of inter-organizational coordination as a way of getting strategically critical resources and capabilities, interfirm alliances network have become a strategic device to create value. Therefore, how to leverage the corporate network to create value and factors that affect value creation is still a hot problem, which academia pay close attention to.Related party transactions is a more complex economic phenomena on the basis of the development of corporate enterprises and interest between related parties. As an inevitable outcome of the development of the capital market, related party transactions is an important economic activity in our country and even the world’s economic activity. Companies can create corporate value by saving transaction costs in related transactions. This paper, take the case of related party transactions, using the resource-based theory and the network resources theory to analyze the effect of cooperative experience and organizational slack on the focal firms’value creation. Finally, the paper takes the 146 listed companies from January 2008 to June 2013 as the sample, which involve joint venture, cooperation, technology research and development and licensing agreements, build the research model, and test the influence of cooperative experience, organizational slack and the focal firms’value creation.The overall conclusion that this article is as follows:firms with a higher level of cooperative experience receive greater value, the relationship between organizational slack and focal firms’value creation exhibits an inverse U-shaped relation, which means that too low and too much organizational slack will negatively affects focal firms’value creation, and that an appropriate level of organizational slack enhances positively focal firms’value creation. It is the first time that the paper not only investigates whether cooperation between the related-parties could create value for focal firms, but also provides empirical evidence about the influence of cooperative experience and organizational slack on the focal firms’value creation.