Strategic alliance termination and performance: The role of task complexity, nationality, and experience

Abstract

Fewer than 50% of strategic alliances are successful [Das, T. K., & Teng, B. (2000). Instabilities of strategic alliances: An internal tensions perspective. Organization Science, 11, 77–101]. This study examines the role of task complexity, nationality, prior alliance experience, and disparity in alliance experience in strategic alliance termination and performance. Based on survey responses from 85 parties in biopharmaceutical alliances, it is found that strategic alliances are more likely to be terminated and have poor performance when they have (1) both R&D and marketing elements, (2) domestic partners, (3) limited prior strategic alliance experience, and (4) large strategic alliance experience disparity between partners. Some of the findings are new and deserve additional investigations.