Abstract
In this paper, we examine ongoing negotiations in alliances through the lens of leadership behaviours. We integrate the leadership literature with the dynamic capability view of the firm to explain the effects of different leadership behaviours on the development of knowledge and innovation capabilities in strategic alliances. We propose that transformational and servant leadership behaviour supports the development of dynamic capabilities, whereas transactional leadership behaviour supports the maintenance of operational capabilities. We formulate propositions outlining the theoretical relationships between transformational, transactional and servant leadership behaviours and entrepreneurship as the antecedents of dynamic and operational capabilities within alliance teams. We discuss the consequences for management theory and practice and suggest future research avenues.
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