Management issues affecting strategic alliances u5p92

Alliances can fail because "operating managers do not make them work, not because contracts are poorly written" (harrigan 1984)

Strategic Alliances fail more often than they should (hitt et al 2003).

Managers from partner companies often have different corporate and national cultural backgrounds. They may be used to working in a hierarchical way, rather than making decisions based on consensus. Therefore strategic alliances are often referred to as "co-operative strategies".

Faulkner (1994)'s four factors of successful alliances:-

Positive attitudes between the partners
clear organisational arrangements for the alliance
A philosophy of organisational learning
Congruent long-term goals

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