Forming strategic alliances: issues in conceptualisation

Abstract

The interactive and interdependent economy of the present day is rooted in exchanges or 'give and take' of varying complexity. The process of conceptualising, planning and executing exchanges to the benefit of all players involved is basic to marketing. Given the three generic forms of economic organisation - market, hybrid and hierarchy, organisational expansions in high technology markets in recent times have witnessed the emergence of hybrid strategic alliances as an alternative to markets and hierarchies. Strategic alliances enable functional integration in inter-firm relationships involving tangible and intangible exchanges. Rapid technological innovations and technological complexity, and forces such as uncertainty, risk and market externalities often cause market failures, and strategic alliances are a means of overcoming them. Nagasimha Kanagal details a framework to conceptualise, manage and negotiate successful strategic alliances.