Title: The alliance evolutionary model: reconciling the hierarchical and developmental approaches to explaining alliance behaviour for small firms

Authors: Lars Bengtsson, Damian Hine, David Parker

Addresses: Department of Business Administration, Lund University, Lund, Sweden. ' UQ Business School, University of Queensland, Queensland, Australia. ' UQ Business School, University of Queensland, Queensland, Australia

Abstract: This paper conceptually investigates innovative relationship between different types of alliances and their relative competitiveness. Three alternative approaches are developed in the paper: a static approach, a developmental approach and finally a synthesis: the Alliance Evolutionary Model (AEM). This approach suggests that alliances could be thought as either strengthening firms| competitiveness through upgrading of differentiation or upgrading of low-cost capabilities and that they are based on either a local network of firms or a knowledge network of firms. The second approach provides a developmental model for a move from the most basic form of collaboration, the conventional supply system, characterised by transaction cost exchanges motivated by self-interest, to the establishment and maintenance of long-term social networks characterised by trust, commitment and mutual benefit. In the third section, the two approaches are synthesised to produce a hybrid model of alliance development. It is argued by the authors that the hybrid model the |AEM|, best approximates practice and provides guideposts for firms in their pursuit of the more sophisticated form of alliances as a means to long-term competitiveness.

Keywords: alliances; alliance evolutionary model; AEM; networks; small firms; innovation; social networks; supply chains; knowledge networks; long-term competitiveness; core competencies; supply chain management; SCM.

DOI: 10.1504/IJMDM.2006.011075

International Journal of Management and Decision Making, 2006 Vol.7 No.6, pp.661 - 676

Published online: 07 Oct 2006 *

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