Management Decision

Purpose – The purpose of this paper is propose a strategic framework for understanding interpartner negotiation dynamics in alliances.

Design/methodology/approach – The authors define interpartner negotiations as a process of reconciling and integrating the interests of the partners in an alliance, and consider four types of interpartner negotiation strategies – problem solving, contending, yielding, and compromising – and then discuss the dynamics of these negotiation strategies in the formation, operation, and outcome stages of alliance development.

Findings – The framework makes clear that the four types of interpartner negotiation strategies identified in the article need to be appreciated as having differential impact at each stage of alliance development.

Research limitations/implications – As interpartner negotiations occur at all stages of alliance evolution, future research may seek to empirically assess the impact of different interpartner negotiation strategies.

Practical implications – The paper discusses how alliance managers can deploy effective interpartner negotiation strategies for achieving alliance objectives at each of the three developmental stages.

Originality/value – The article responds to the need of managers with alliance responsibilities for a framework to help identify and exploit the most effective ways to conduct interpartner negotiations in alliances for productive interactions at different alliance development stages.