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Alliance Management as a Source of Competitive Advantage
R. Duane Ireland
Robins School of Business, University of Richmond, Richmond, VA 23173, USA, direland{at}richmond.edu
Michael A. Hitt
College of Business Administration, Arizona State University, Tempe, AZ, USA, michael.hitt{at}asu.edu
Deepa Vaidyanath
College of Business Administration, Arizona State University, Tempe, AZ, USA, deepa.vaidyanath{at}asu.edu
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.
Journal of Management, Vol. 28, No. 3,
413-446 (2002)
DOI: 10.1177/014920630202800308
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