Alliance terminations boost firm value when alliance portfolio is large.
The article explores whether ending strategic alliances can benefit firms with many alliances. By studying how firms' stock prices change after announcing alliance terminations, the researchers found that firms with a lot of alliances can increase their value by ending some of them. This is because having too many alliances can make it hard for a firm to manage them effectively. The study suggests that firms should carefully consider when to terminate alliances to improve their overall performance.