Excessive resource control and strategic alliance failure Online publication date: Tue, 06-Nov-2007
by Allison D. Watts, Robert D. Hamilton III
International Journal of Technology Intelligence and Planning (IJTIP), Vol. 3, No. 2, 2007
Abstract: The use of domestic and international strategic alliances to develop new technologies continues to grow despite the high numbers of strategic alliance failure. While opportunism, trust, and perceived control are all noted by researchers as a basis for choosing among various types of alliance arrangements, control issues within ongoing alliances have been under-researched. We propose that partners in non-equity technology alliances control their contributions to the partnership and, depending on the level of trust between the partners, may choose to restrain their resource contributions. This paper fuses resource dependency theory with trust literature to explain how antecedent conditions and resource control can increase the risk of failure in international strategic alliances. From a managerial perspective, understanding these causes, and altering their behaviour accordingly, will reduce the firm's likelihood of alliance failure and enhance the technological cooperation necessary for strategic success.
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