The evolution of alliance capabilities

Key words: learning mechanisms, alliance capabilities and competitive heterogeneity. 2 This paper assesses the effectiveness and differential performance effects of learning mechanisms on the evolution of alliance capabilities. Relying on the concept of capability lifecycles, prior research has suggested that different capability levels could be identified in which different intra-firm learning mechanisms are used to enhance a firm’s alliance capability. However, empirical testing in this field is scarce and little is known as to what extent different micro-level learning mechanisms are indeed useful in advancing a firm’s alliance capability. This paper analyzes to what extent intra-firm learning mechanisms help firms evolve their alliance capability and create competitive heterogeneity. Differential learning may induce firms to yield superior returns in their alliances in comparison to competitors. We present a conceptual model that assumes capabilities evolve through different types of learning. The results show that different learning mechanisms have different performance effects at different stages of the allianc