Strategic Alliance Development - A Process Model A Case Study Integrating Elements of Strategic Alliances

There has been enormous increase in the formation of strategic alliance and the research efforts devoted to understanding alliance development process over the last few decades. However, the critical elements that influence the each stage of alliance development are yet unexplored. This dissertation aims to fill this gap and to supplement it by introducing an integrated process model of strategic alliance development and its critical elements. The process model for strategic alliance development introduced consist of four stages namely Discussion stage, Formation stage, Operational Stage and Evaluation stage. Within the each stage of the alliance development process model, its critical elements were discussed. The discussion begins with identifying strategic motives and intent, form of co-operation and alliance strategy in the Decision Stage. Then, partner selection, alliance governance or structure and alliance agreement in the Formation Stage. This follows by partner contribution, control, human resources management and conflicts in Operational Stage and finally, alliance performance and organizational learning and behavioral as well as organization characteristics in the evaluation stage were discussed. In order to illustrate and to support the process model, a real life case study was presented. Ultimately, the paper identified that information and communication are the most critical elements in ensuring the success functioning of an alliance