The legitimacy of strategic alliances: an institutional perspective

TLDR

Strategic alliances are posited to serve a legitimating function for firms, with their impact on performance mediated by alliance governance structure and partner selection preferences. The paper proposes a theoretical framework that identifies five types of legitimacy associated with strategic alliances and delineates the conditions under which legitimation becomes an important outcome. Propositions are developed to explain when firms are most likely to pursue alliances for legitimacy purposes and how the legitimating role of alliances contributes to firm and alliance performance. The study concludes with a summary and implications of a legitimacy‑based view of alliances. © 2007 John Wiley & Sons, Ltd.

Abstract

Abstract Drawing on an institutional perspective, this paper suggests that strategic alliances serve an important legitimating function for firms and that this role, mediated by alliance governance structure and partner selection preferences, has a significant influence on firm and alliance performance. A theoretical framework is proposed that identifies five types of legitimacy associated with strategic alliances and the specific conditions under which legitimation may be an important outcome of strategic alliances. Propositions are developed to explain when firms are most likely to enter into alliances for legitimacy purposes and how the legitimating role of strategic alliances contributes to firm and alliance performance. The paper concludes with a summary and implications of a legitimacy‐based view of alliances. Copyright © 2007 John Wiley & Sons, Ltd.