Title: Determinants of the international strategic alliance process and alliance failure: learning from the Volvo-Renault break-up
Authors: Desalegn Abraha Gebrekidan; Syeda-Masooda Mukhtar
Addresses: School of Business, University of Skövde, P.O. Box 408, Sweden ' Faculty of Economics and Business Administration, King AbdulAziz University, P.O. Box 42804, Jeddah 21551, Saudi Arabia
Abstract: While the scholarly focus has shifted from strategic alliance formation to alliance performance and thus alliance outcome, the process that leads to a particular outcome: alliance success or alliance failure remains indeterminate. Given their high failure rate, this study aims to identify factors that contribute to an alliance failure to better understand the strategic alliance management process to help alliances survive. Purposefully, the Volvo-Renault alliance break-up is investigated. A Process Model for International Strategic Alliance Lifecycle is developed. The findings establish that post-formation, the strategic alliance process necessitates managing interactions among: partners' objectives; partners' resource contribution; access to partner's network; and alliance performance. However, for an alliance to sustain, learning and assessment must be an integral part. Learning and assessment are critical strategic inputs that serve as 'binding forces', and as an 'alert mechanism' whereby timely corrective managerial actions are triggered in favour of an alliance sustainability and vice versa.
Keywords: strategic alliance formation; lifecycle; management process; performance; resources; network; learning; assessment; sustainability; survival; collaboration; automotive industry; Europe; Sweden; France.
International Journal of Strategic Business Alliances, 2017 Vol.6 No.1/2, pp.86 - 110
Received: 04 Jan 2017
Accepted: 15 Sep 2017
Published online: 01 Feb 2018 *