Past success and failure shapes the future decisions of an organization. Recent research shows that experience with previous strategic alliances is an important determinant for new alliances. However, the benefits of past experience depreciate rapidly, and the total number of long-dated experiences does not appear to be a major source of success in dynamic industries. The authors extend Sampson's work to the semiconductor industry to determine the effect of experience on these firms. This article offers an interesting extension to previous studies on experience effects and shows that experience does matter in amount and recency.
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