Predicting and measuring alliance performance: a multidimensional analysis

Abstract

The strategic alliance literature demonstrates that alliances create value for the partners, but also that many alliances fall short of expectations. This study addresses the complex issue of alliance performance. We follow 100 contractual alliances over a 5‐year period, and study their performance in terms of abrupt termination, short‐term performance, and long‐term performance. The results indicate that alliances that are considered strategically important are less likely to be abruptly terminated. We also find that newly established alliances have a higher termination rate than older alliances. Short‐term performance is primarily affected by access to complementary and strategically important resources, whereas long‐term performance is related to specific investments in human capital combined with the partners' ability to develop and expand alliance activities over time. Copyright © 2007 John Wiley & Sons, Ltd.

Strategic alliance motivation for technology commercialization and product development

“…In addition, these firms pursue alliances to gain production facilities, expertise and access to distribution channels to eliminate competitors because most local firms lack skilled personnel, and they fail to build their own competencies in the search for appropriate technologies. Our finding also complements some finding of Dyer and Hatch (2006) and Lunnan and Haugland (2008) that firms in USA and others in previous period actually consider strategic alliance issues when developing long-term, products.…”

The Two Facets of Collaboration: Cooperation and Coordination in Strategic Alliances

“…Some studies report extremely high failure rates for collaborative endeavors, such as strategic alliances and joint ventures, 1 often well in excess of 50 percent (Kale, Dyer, & Singh, 2002;Kale & Singh, 2009;Lunnan & Haugland, 2008). These discouraging statistics, and colorful folklore about high-profile alliance failures, feed a prevailing discourse that highlights the hazards of collaboration (Bamford, Gomes-Casseres, & Robinson, 2004;Dyer, Kale, & Singh, 2001).…”

Partnering in a Haze: Interdependence Misspecification and Firm Performance in Strategic Alliances

“…Alliances are complex inter-organizational relationships with high failure rates (Kale, Dyer and Singh, 2002;Kale and Singh, 2009;Lunnan and Haugland, 2008). A key challenge in an alliance context is governing the joint set of activities of the partnering firms.…”