Why did a number of international strategic alliances rise significantly in recent decades

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Abstract

The instabilities of strategic alliances have been examined in the literature through a number of theoretical approaches. Alliance instabilities refer to major changes or dissolutions of alliances that are unplanned from the perspective of one or more partners. Although the literature identifies certain characteristics of strategic alliances that may lead to their unplanned dissolution, the extent of our understanding of this subject appears to be fragmented and incomplete. In this article we propose a comprehensive framework for adequately understanding alliance instabilities based on the notion of internal tensions. We suggest that strategic alliances are sites in which conflicting forces develop and which can be viewed as being constituted by three key pairs of competing forces-namely, cooperation versus competition, rigidity versus flexibility, and short-term versus long-term orientation. This tensions framework helps us in explaining the intrinsic vulnerability of alliances in terms of a wide range of internal contradictions and enables us to examine, in an integrated manner, the incidence, dynamics, and eventual dissipation of the inherent instabilities. We discuss the interrelationships among the different internal tensions and their impacts on different types of strategic alliances. We also examine the termination of alliances through mergers/acquisitions and dissolution. Finally, we suggest ways to empirically test the various ideas and propositions developed here and indicate directions for further research.

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This unique journal scans the globe for new research that draws upon multiple disciplines or levels of analysis: achieves genuine integration of theory, data, and managment applications; and improves organizational functioning. Artificial Intelligence Communications Theory Economics History Hypercompetition Information Science Organization theory Political Science Psychology Strategic Management Systems Theory

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With over 12,500 members from around the globe, INFORMS is the leading international association for professionals in operations research and analytics. INFORMS promotes best practices and advances in operations research, management science, and analytics to improve operational processes, decision-making, and outcomes through an array of highly-cited publications, conferences, competitions, networking communities, and professional development services.

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Organization Science © 2000 INFORMS
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Why have strategic alliances grown in popularity in recent years?

Why have strategic alliances grown in popularity in recent years? They've grown in popularity in recent years because they allow companies to compete or gain a competitive edge without much risk.

Why have the number of strategic alliances among major companies increased significantly over the last decade?

The Internet, advances in telecommunications, and improved transportation systems have helped firms enter foreign markets and have contributed to the globalization of business. Simultaneously, they have facilitated the creation of strategic alliances.

Are strategic alliances increasing?

The combined number of alliances and JVs has increased in the past two years and is now at its highest level since the start of the century.

What are the reasons for forming a strategic alliance?

Strategic alliances are formed to gain market share, try to push out other companies, pool resources for large capital projects, establish economies of scale, or gain access to complementary resources.