Entrepreneurship Through Mergers and Alliances

This chapter synthesizes ideas from the fields of entrepreneurship and collaboration. It builds on Joseph Schumpeter’s definition of entrepreneurship as the “making of new combinations.” This view is extended with modern concepts from the resource-based view of the firm, from organizational economics, and from industrial organization. The chapter explores three broad questions: how joint value is created in business combinations, how collaboration is governed, and how value created jointly is shared. These questions define the “remix strategy,” defined as the use of mergers, alliances, and joint ventures to create value. Suggestions for future research are noted throughout.