Alliances as strategic tools: a cross-industry study of partnership planning, formation and success

Despite the fact that most studies have been pointing to high failure rates, collaboration remains increasingly popular as an organisational form of economic activity, particularly in technology-intensive industries. This paper presents a cross-industry qualitative study of the motives and drivers, the decision-making process, and the success/failure factors of partnership formation. The results of interview data collected in the computer, telecommunications and media industries (CTMI) indicate that the need to utilize the full value-creation potential of the firm’s resources has greatly contributed to the increasing popularity of partnerships in these industries. Behavioural characteristics, e.g. commitment, coordination and communication among others, are found to play more significant role in explaining overall partnership success compared to organisational characteristics such as structure and control mechanisms. This work highlights the necessity to deal with contradictory interests across the firm’s partnerships. Balancing numerous relationships is a thorny managerial act, which must be further investigated in the literature on collaboration.