Investigation into the increasing importance of Competence
In the success of Strategic Alliances
Introduction
Spekman & Isabella (2000) offers a definition of an alliance as " a close, collaborative relationship between two, or more, firms with the intent of accomplishing mutually compatible goals that would be difficult for each to accomplish alone". A key aspect that can be taken from this definition that will be explored is the relational issue surrounding this topic.
Tsang (1997) offers a definition for a strategic alliance as "a long-term cooperative arrangement between two or more independent firms that engage in business activities for mutual economic gain." (Tsang1997)
Tsang goes on to explore the importance of resources in this ?economic gain', and this represents another key area in this discussion.
Much research has been undertaken exploring the competitive advantage strategic alliances can provide for a business. Spekman & Isabella (2000) explain that alliances "enable firms to develop competitive advantage by leveraging the skills and capabilities of its partners to improve the performance of its value chain". This highlights the importance of internal resources and capabilities which is what most of the literature written on this subject suggests is at the heart of this discussion.
The reason for this explorative study is due to the fact most alliance end in failure. "Alliance success remains elusive. Studies find that as many as 70 percent of alliances are not successful" (Day1995, cited in Spekman et al, 2002). This is worrying from a strategic viewpoint, as there is a definite sense that competitive advantage can be gained from these alliances, but if they are not successful then this will not to be po ...