Moving forward with strategic alliance research: a managerial-level approach.

• Author: Rinfret, Louis

1. INTRODUCTION

   The number of alliances being formed and the portion of firms' revenue derived from cooperative activity keep growing at impressive rates. Yet, little is known about the factors influencing managers' evaluations and decisions relative to alliances in practice. Although certain commercial organizations and professional associations are pioneering formalized techniques of alliance decisions and evaluations (cf. ASAP 2002; Bell, den Ouden et al. 2006), alliances remain challenging to manage as they are loosely federated systems with multiple centers of power rather than a single chain of command (Walter, Lechner et al. 2008) implying difficulties in applying conventional managerial techniques.

   In this article I put forth a set of propositions to help structure research into this important and underexplored area of strategic alliances. The paper is organized as follows. Following this introduction, an explanation of the relevance of studying managerial perceptions in alliances is articulated. Research propositions are developed in two stages: first at an individual actor level where context and frames of references are central and secondly at a group level where social processes of sensemaking are explored. A conclusion offers a reflection on the relevance of the topic from a research and practice perspective.

2. WHY STUDY MANAGERIAL PERCEPTIONS OF STRATEGIC ALLIANCES?

   Throughout their lifecycle, from their inception to their termination, alliances--new or ongoing--are reviewed (Doz 1996), whether formally or informally. Consequently, managers make decisions ranging from strategy definition and investment levels to operational optimizations and termination. But this has been rather neglected in the literature on strategic alliance performance. Underlying the management and economics-dominated intent and performance theories found in the alliance literature, is a more intricate set of informal psycho-sociological aspects, which at once is influenced by, and shapes alliance stakeholders' motivations, thoughts and actions. Fundamental connections between psycho-sociological phenomenon and economic and managerial activity in alliances more than likely exist; yet have largely been excluded from scientific enquiry and as a result have left alliance theory incomplete. Expanding our focus to include these fundamental variables in our studies is required to properly address collaborative issues. This chapter addresses this issue by developing a sensemaking perspective on strategic alliances.

   A number of theories developed in other organizational contexts may support the development of alliance performance theory--especially as it relates to understanding aspects of human agency in the context of strategic alliances. After all, managers have been studied in a number of organizational settings, and it makes sense to leverage extant theory to better understand their challenges, thinking and actions in context of strategic alliances. Research in the fields of management, psychology and sociology has led to several important discoveries and theories that may be used in the field of strategic alliances. For instance it has provided important insights relating to the strategy development process (e.g. Whittington 2000), the work of managers (e.g. Mintzberg 1990), decision-making (Simon 1987), as well as the management of cultural differences (e.g. Hofstede 1980).

   While these bodies of theory, amongst others, represent interesting bases to explore alliances, it is proposed that, at a more elemental level, we need to better understand the factors that influence the perspectives and behaviours of stakeholders in alliances.

   Collaborative endeavours are by design incomplete contracts (Williamson 1991) or agreements in which not all terms are specified in advance. They require significant and sustained managerial contribution to learn, define, re-evaluate and adjust in order for the relationship to evolve (Doz 1996). In other words alliances require constant sensemaking to re-evaluate the value and desirability of pursuing a partnership. As it has been demonstrated in organizational environments, issues of identification and commitment significantly influence individuals' sensemaking (Pratt, 2000; Johnson and Chang, 2006). These are especially relevant in the context of alliances as each individual participating in an alliance will be a member of more than one organization and will likely be engaged in several projects, each with their own intricacies and priorities. Particularly in fluid and fast-paced sectors such as high technology industries, a project or partnership may suddenly gain high importance or lose its importance in the organizational context based on changing corporate strategies and tactics. Stakeholders involved in such projects or partnerships must make sense of their environment to form their opinions and direct their actions towards the achievement of their evolving goals as an organization member and as an individual. In doing so, their identities and...