A “new” view on “traditional” strategic alliances' formation paradigms

Abstract

Purpose

This paper seeks to argue that managers need to apply a holistic and long‐term approach in their understanding of strategic alliances' paradigms to inform decisions. Owing to the complexity of strategic alliance scenarios it is often a difficult task for management to know what information is required in order to take such decisions. It is suggested here that six widely used motivational paradigms in the formation of interorganisational relationships (transaction cost economics, resource dependence, strategic choice, stakeholder theory, organizational learning, and institutional theory) can be used not only during the formation stages of alliances but also during an alliance's lifecycle to help in decision making.

Design/methodology/approach

The paper proposes a discussion of possible shortcomings in the literature on motivational paradigms based on a review of the pertinent literature and, with the help of previously published cases/examples, suggests a new conceptual perspective of the paradigms.

Findings

The paper explains how and why motivational paradigms could be viewed as an interrelated web of issues throughout a strategic alliance's entire lifecycle – and not just at their formation stage when, often, they are used singly and in isolation of one another. It is proposed that their continuous and holistic use contributes to a manager's awareness of possible issues and helps his/her strategic management and decision taking. This new perspective is presented conceptually in a model.

Practical implications

For decision makers and managers: the proposed perspective will enhance their management and decision‐taking processes by increasing their awareness and acting as an aide‐mémoire of issues they need to consider/investigate and will reduce the possibility of alliance failure. For educators, it will expand the scope of traditional alliance formation paradigms and inform their teaching and research.

Originality/value

This is a novel approach to a traditional theory that expands its scope and usefulness.

Citation

Arturo Lowensberg, D. (2010), "A “new” view on “traditional” strategic alliances' formation paradigms", Management Decision, Vol. 48 No. 7, pp. 1090-1102. https://doi.org/10.1108/00251741011068798