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Home arrow Management arrow Strategic Management in the 21st Century. Corporate Strategy

CONCLUSION

Alliances are widespread in today's business world due to their potential to improve business performance and allow firms to achieve goals that they could not easily achieve alone. Increased competition, rapid technological change, and technological discontinuities that are occurring in almost all industries mean that organizations continue to enter a growing number of alliances to enhance their ability to enter new markets, access new resources, explore new business opportunities, and/or minimize risk. However, despite the potential of alliances, firms often fail to reap the anticipated benefits. This chapter has introduced a number of ways in which organizations can address this apparent paradox. In particular, two key ways in which the likelihood of alliance success may be improved is to engage in two distinct tiers of analyses that focus on specific alliances and on developing alliance capability. With respect to specific alliances, they are more likely to succeed if partners are selected on the basis of their ability to offer complementary resources, for being strategically compatible, and for being committed to the alliance. Further, the alliance will need to be carefully managed, as it evolves through critical phases of development, by utilizing appropriate coordination/governance mechanisms to build interdependence and trust between partners. The chapter also discussed how an increasingly common form of fast-moving short-lived alliances, interimistic alliances, alters the degree to which firms can and should rely on various forms of governance to manage such alliances.

Regarding alliance capability, organizations will benefit particularly from making the development of this capability a strategic priority, and systematically investing over time to develop alliance processes and managerial expertise. Alliance capability requires focused attention to develop both a dedicated alliance function and institutionalized processes to accumulate, store, communicate, and leverage alliance experiences organization wide. Having a champion for this within senior leadership is crucial as organizational restructuring and changes in leadership and/or leadership philosophy can limit the embracing of alliance-capability initiatives and result in a costly loss of accumulated experience-based learning. The challenges associated with developing alliance capability should not be underestimated, and expectations should be set accordingly. The path to developing alliance capability is inexact, time consuming, and not well suited to premature assessments of return on investment.

With a view to the future, it should be expected that executives and firms will undoubtedly face fresh challenges and issues regarding the successful use of alliances. Even if a firm possesses effective alliance capability, steps will need to be taken to continue the process of alliance learning to respond to new alliance opportunities that emerge, and to continue to create value as existing alliances evolve. In sum, a firm's future ability to enjoy the benefits and strategic advantages of alliances will depend on their unflagging quest to extend their alliance capabilities and to become, or remain, an effective relationship-based virtual organization whose success is elevated by its competence in managing the key interfirm relationships.

NOTES

1 . Lambe, C. Jay, Robert E. Spekman, and Shelby D. Hunt (2002), "Alliance Competence, Resources, and Alliance Success Conceptualization, Measurement, and Initial Test," Journal of the Academy of Marketing Science, 30 (2): 141-158.

2. Bucklin, Louis P. and Sanjit Sengupta (1993), "Organizing Successful Co-Marketing Alliances," Journal of Marketing, 57 (April): 32-46.

3. Sarkar, M.B., Raj Echambadi, S. Tamer Cavusgil and Preet S. Aulakh (2001), "The Influence of Complentarity, Compatability, and Relationship Capital on Alliance Performance," Journal of the Academy of Marketing Science, 29 (4): 358-373.

4. Parise, Salvatore and Lisa Sasson (2002), "Leveraging Knowledge Management Across Strategic Alliances," IBM White Paper Series, available at ibm. com.

5. Rindfleisch, Aric and Christine Moorman (2003), "Inter-Firm Cooperation and Customer Orientation," Journal of Marketing Research, 40 (November): 421-437.

6. Lambe, Spekman, and Hunt (2002).

7. Jap, Sandy D. (1999), "Pie-Expansion Efforts: Collaboration Processes in Buyer-Supplier Relationships," Journal of Marketing Research, 36 (November): 461-475.

8 . Morgan, Robert M. and Shelby D. Hunt (1994), "The Commitment-Trust Theory of Relationship Marketing," Journal of Marketing, 58 (July): 20-38. 9. Ibid.

10 . Grzeskowiak, Stephan, C. Jay Lambe, James R. Brown, and Kâre Sandvik (2003), "Antecedents of Relational Norms in Developing and Mature Relationships," Winter AMA Educators' Conference Proceedings, February.

11. Dwyer, F. Robert, Paul H. Schurr, and Sejo Oh (1987), "Developing Buyer-Seller Relationships," Journal of Marketing, 51 (April): 11-27; Jap, Sandy D. and Shankar Ganesan (2000), "Control Mechanisms and the Relationship Life Cycle: Implications for Safeguarding Specific Investments and Developing Commitment," Journal of Marketing Research, 37 (May): 227-245.

12. Jap and Ganesan (2000).

13. Kale, Prashant and Harbir Singh (2009), "Managing Strategic Alliances: What Do We Know Now, and Where Do We Go from Here?" Academy of Management, 23 (3): 45-63; Kale, P. and H. Singh (2007), "Building Firm Capabilities through Learning: The Role of the Alliance Learning Process in Alliance Capability and Success," Strategic Management Journal, 28 (10): 981-1000; Kale, P., J. Dyer, and H. Singh (2002), "Alliance Capability, Stock Market Response and Long-Term Alliance Success: The Role of the Alliance Function," Strategic Management Journal, 23 (8): 747-767.

14. Gueth, A. (2005), "Entering into an Alliance with Big Pharma: Benchmarks for Drug Delivery Contract Service Providers," Pharmaceutical Technology, 25 (10): 132-135.

15. Lambe, C. Jay, Robert E. Spekman, and Shelby D. Hunt (2000), "Interimistic Alliances: Conceptualization and Propositional Development," Journal of the Academy of Marketing Science, 28 (2): 212-225.

16. Ibid.

17. Ibid.

18. Ibid.

19. Bruner, Robert F., Mark R. Eaker, R. Edward Freeman, Robert E. Spekman, Elizabeth Olmsted Teisberg, and S. Venkataraman (2003), The Portable MBA, 4th ed. Hoboken, NJ: John Wiley and Sons.

20. Gueth, Anton (2001), "Entering into an Alliance with Big Pharma: Benchmarks for Drug Delivery Service Providers," Pharmaceutical Technology, October, 132-138.

21. Anderson, James C., Hâkan Hâkansson, and Jan Johanson (1994), "Dyadic Business Relationships within a Business Network Context," Journal of Marketing, 58 (October): 1-15.

22 . Parkhe, Arvind (1998), "Understanding Trust in International Alliances," Journal of World Business, 33 (3): 219-240; Parkhe, Arvind (1998), "Building Trust in International Alliances," Journal of World Business, 33 (4): 417-447.

23. Lambe, Spekman, and Hunt (2002).

24. Schildt, H. A., Maula, M. V. J., and Keil, T. (2005), "Explorative and Exploitative Learning from External Corporate Ventures," Entrepreneurship Theory and Practice, 29 (4): 493-515.

25. Lambe, Spekman, and Hunt (2002).

26. Ibid.

27 . Hunt, Shelby D. (2000), A General Theory of Competition. Thousand Oaks. CA: Sage.

28. Lambe, Spekman, and Hunt (2002).

29. Ibid.

30 . Day, George S. (1995), "Advantageous Alliance," Journal of the Academy of Marketing Science, 23 (4): 297-300.

31. Lambe, Spekman, and Hunt (2002).

32. Heide, Jan B. (1994), "Inter-organizational Governance in Marketing Channels," Journal Marketing, 58 (January): 71-85.

33. Lambe, Spekman, and Hunt (2000).

34. Heide, Jan B. (1993), "Plural Governance in Industrial Purchasing," Journal of Marketing, 67 (October): 18-29.

35. Lambe, Spekman, and Hunt (2000).

36 . Ibid.

37. Ohmae, Kenichi (1989), "The Global Logic of Strategic Alliances," Harvard Business Review, March-April, 143-154.

38 . Gomes-Casseres, Benjamin (2004), "Strategy: Managing beyond the Alliance," CriticalEYE Publications LTD, June-August, pp. 4-8.

39. Parkhe (1998); Parkhe (1998).

40. Lambe, Spekman, and Hunt (2000).

41 . Ibid.

42 . Ibid.

43 . Ibid.

44 . Wilson, David T. (1995), "An Integrated Model of Buyer-Seller Relationships," Journal of the Academy of Marketing Science, 23 (4): 335-345.

45 . Ibid.

46. Lambe, Spekman, and Hunt (2000).

47. Lambe, C. Jay, C. Michael Wittmann, and Robert E. Spekman (2001), "Social Exchange Theory and Research on Business-to-Business Relational Exchange," Journal of Business-to-Business Marketing, 8 (3): 1-36.

48 . Grzeskowiak, Stephan, C. Jay Lambe, James R. Brown, and Kare Sandvik (2003), "Antecedents of Relational Norms in Developing and Mature Relationships," Winter AMA Educators' Conference Proceedings, February.

49. Ibid.

50. Lambe, Spekman, and Hunt (2000).

51. Ibid.

52. Ibid.

53. Ibid.

54 . Beerkens, B. and C. Lemmens (2001), "Tech Alliances: Managing Your Alliance Portfolio," in The Allianced Enterprise: Global Strategies for Corporate Collaboration, edited by Adrianus Pieter de Man, Geert Duysters, and Ash Vasudevan. London: Imperial College Press, pp. 93-107.

55. Lambe, Spekman, and Hunt (2002).

56. Lambe, C. Jay and Robert E. Spekman (1997), "Alliances, External Technology Acquisition, and Discontinuous Technological Change," Journal of Product Innovation Management, 14 (2): 102-116.

57. Ibid.

58. Lambe, Spekman, and Hunt (2002).

59. Kale, Dyer, and Singh (2002).

60. Ibid.

61. Lambe and Spekman (1997).

62 . Ibid.

63. Lambe, Spekman, and Hunt (2002).

64. Ibid.

65 . Ibid.

66. Spekman. Robert E., Lynn A. Isabella, and Thomas C. MacAvoy (1999), Alliance Competence: Maximizing the Value of Your Partnerships. New York: John Wiley.

67 . Ibid.

68 . Ibid.

69 . Ibid.

70. Lambe, Spekman, and Hunt (2002).

71 . Ibid.

72 . Lambe and Spekman (1997).

73 . Ibid.

74. Sivadas, Eugene and F. Robert Dwyer (2000), "An Examination of Organizational Factors Influencing New Product Success in Internal and Alliance-Based Processes," Journal of Marketing, 64 (January): 31-49.

75 . Ariño, Africa and Yves Doz (2000), "Rescuing Troubled Alliances: Before It's Too Late," European Management Journal, 18 (2): 173-182.

76. Duysters, Geert, Gerard Kok and Maaike Vaandrager (1999), "Crafting Strategic Technology Partnerships," R&D Management, 29: 343-351.

77. Weitzman, Hal and Jonathon Soble (2008), "787 Delay Could Cost Boeing Billions," Financial Times, April 9.

78 . Williamson, Oliver E. (1985), The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting. New York: The Free Press; Weitzman and Soble (2008).

79. Dickie, Lance (2009), "Span of Control," Seattle Times, September 14.

80. Gates, Dominic (2007), "Analyst's 787 Doubts Burn Boeing," Seattle Times, January 23.

81. Lambe, C. Jay, Robert E. Morgan, Shibin Sheng, and Gopal Kutwaroo (2009), "Explaining Success in New Product Development Alliances: Distinguishing between Exploration and Exploitation Strategy and the Moderating Role of Formalization," Journal of Business to Business Marketing, 16 (3): 242-275.

82. Eisenhardt, K. M. and J. A. Martin (2000), "Dynamic Capabilities: What Are

They?" Strategic Management Journal, 21: 1105-1121.

83. Parkhe (1998).

 
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