Overcoming the innovation‐alliance paradox: a case study of an explorative alliance

Abstract

Alliances are an increasingly common way of organizing the uncertain exploration phase of radical innovation. It may, however, be argued that there is inherent tension between the logic of alliances and the logic of innovation. Whereas innovation is generally argued to require flexibility, political protection and extensive communication, the commonly mentioned key characteristics of alliances are detailed contractual regulation, political struggles and limited information exchange. Based on an in‐depth case study of a largely successful alliance for innovation between a European bank and a European telecommunications operator, this paper argues that the tensions between an innovation logic and an alliance logic may be overcome by creating a multilevel governance structure for the alliance, with a learning agenda on both the operational and strategic levels. The different levels of the structure are described and their contribution to the success of the alliance discussed.