Enhanced company performance through the development of network alliance management skills: a four-point framework

Abstract

Purpose The prevalence of corporate alliances has increased significantly in the past 25 years. However, such coalitions do not always produce the required results – a problem that is exacerbated when several partners are involved in a network alliance. Part of the difficulty is that, often, firms do not recognize all of the key issues in the successful management of an alliance. This paper aims to outline a four-point model that can be used to help companies develop their employees and work more effectively within network alliances. Design/methodology/approach This paper is a conceptual paper that draws in examples from Apple and IBM as well as research from the automobile, oil and higher education industries. It then offers a practical ABCD framework to assist companies in developing their staff to work effectively within network alliances. Findings Many studies show that companies who habitually succeed at strategic alliances have developed superior management teams. Despite this, few companies actively encourage training or even set best practices for alliance management. Given the high cost of establishing alliances and the excessive failure rate, it would seem logical that companies would invest time in the development of skills for personnel, thereby facilitating alliance success. If organizations dedicated more time and funds to training staff in the efficient management of alliances, they would considerably increase the likelihood of their success. Originality/value This paper gives a practical framework that can be referred to when developing company employees to work more effectively within a network alliance. This framework is based on analysis from a broad range of industries.