Resource title

Partner Selection Criteria in Strategic Alliances - When to Ally with Weak Partners

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Resource description

In many emergent markets, cross-industry alliances are necessary to develop and market newproducts and services. The resource-based view suggests that firms form alliances to access oracquire valuable, rare, non-imitable and non-substitutable resources, and that such accessdetermines the level of profits. Hence, firms confronted with the choice between partners withstrong versus partners with weak resource endowments should choose the former. We contest thisview and argue that firms benefit from allying with weak partners at certain times. In essence, wesuggest that partner selection involves assessing the relative importance of strong resourceendowments and aligned strategic aspirations over time. By adopting an evolutionary approach, weshow that appropriate partner selection criteria are dynamic and may involve allying with weakpartners in the initial exploratory stage, with weak and/or strong partners in the development stageand with strong partners in the maturity stage. Our findings suggest that the resource-basedunderstanding of strategic alliances should be extended to include a more profound role for apartner firm’s strategic aspiration.

Resource author

Mikkel Lucas Overby

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Resource publish date

Resource language

eng

Resource content type

application/pdf

Resource resource URL

http://hdl.handle.net/10398/7888

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