Alliance Management as a Source of Competitive Advantage

TLDR

Strategic alliances provide firms with resources, learning, and competitive advantage, especially as few firms possess all necessary resources in a dynamic landscape, prompting them to seek alliances. The study examines strategic alliance management through transaction‑cost, social‑network, and resource‑based perspectives. Effective alliance management involves selecting the right partner, building social capital and knowledge, and developing trust‑based relationships to maximize cooperation. The authors conclude that effective alliance management is essential for firms to achieve competitive advantage and create value.

Abstract

Strategic alliances are an important source of resources, learning, and thereby competitive advantage. Few firms have all of the resources needed to compete effectively in the current dynamic landscape. Thus, firms seek access to the necessary resources through alliances. We examine the management of strategic alliances using the theoretical frames of transactions cost, social network theory and the resource-based view. Alliances must be effectively managed for their benefits to be realized. Effective alliance management begins with selecting the right partner. Furthermore, alliances must be managed to build social capital and knowledge. To maximize cooperation among the partners, a trust-based relationship must be developed. Therefore, we conclude that managing alliances is crucial for firms to gain competitive advantage and create value with strategic alliances.