2 The Role of Private Equity Firms in Alliance Formation from the Perspective of Value Creation

In this chapter, we refer to three theoretical frameworks in order to analyze our problem and then we apply the theory to the French market in Chapter 3. We begin our analysis with the use of contractual theories (section 2.1), and then discuss knowledge-based theories (section 2.2). The final section will turn to sociological network theories (section 2.3) with the sole aim of completing the contractual and knowledge-based argumentation.

The contractual theories we allude to include the transaction cost theory (TCT) and the positive agency theory (PAT). The so-called “knowledge-based” theories are based on strategic or heterodox economic streams. They include the resource-based view (RBV), competence-based view (CBV), evolutionary economic theory and behavioral theory of the firm. They are sometimes grouped under the term knowledge-based view (KBV). These two theoretical frameworks are part of the efficiency paradigm that allows value creation to be analyzed [CHA 06]. In light of our problem, they make it possible to analyze the role of a PEF in improving (or deteriorating) the efficiency of alliances formed, as well as the impact of a PEF on the alliance’s value creation. An organizational system (including the alliances in which we are interested here) is considered to be efficient if it maximizes organizational rent (or surplus) and if, on average, there is no alternative mechanism ...

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