Stonehouse et al. (2004)

Management > Global Strategic Management > Lectures > Independent Research > Stonehouse et al. > Alliances/Integration > Transnational M&A > Problems with integration > Success factors > Collaborative ventures/strategic alliances > Types > Successful alliances

Successful alliances

According to Faulkner (1995), there are a few keys to facilitate a successful alliance:

1. Complementary skills and capabilities of partners
2. Degree of overlap between parties is to be kept at a minimum
3. High level of autonomy with leadership and long-term commitment from parent organisations is necessary
4. Building of trust and to not solely rely on the contractual framework of the relationship (lower transaction costs)
5. Recognition of the differing cultures of the partners

Alliances work best if partners are from related industries or when the objective is the development of a new geographical region.

The boundaries of the contract can inhibit innovation, so it must be re-evaluated at points and be kept flexible.

Strategic management of networks and alliances