This study examines the applicability of a bandwagon explanation for
interfirm alliances in the global pharmaceutical industry. A sample of
alliances undertaken by 43 firms, with headquarters in the United States,
Europe, and Japan, in the period 1975 to 1989, was analyzed. Bandwagon
pressures, measured by the proportion of other firms in one's peer group
undertaking alliances and their average number of alliances, was found to
influence both the probability that a firm will undertake at least one
alliance and the number of alliances it undertakes.
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