Strategic alliances—Guidelines for success

Abstract

The authors are concerned that a growing number of firms are forming too many ‘bandwagon’ alliances … in a vacuum of strategic consideration and, as a consequence, are placing their organizations at a competitive disadvantages. Because of implementation problems associated with differing management styles, cultures, operational practices and degrees of control, not too many firms can point to having positively capitalized on the potential advantages. In fact some researchers believe the failure rate of alliances to be as high as 50 per cent or more. The authors believe it is timely to put alliances into a strategic context and provide senior management considering this business route with guidelines for success.