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Strategic Alliance performance: Economic Logic or Sensemaking?

Research output: Contribution to conference - Without ISBN/ISSN Conference paper

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Publication date15/08/2011
Original languageEnglish
EventAcademy of Management Conference - San Antonio, United States
Duration: 7/08/2011 → …

Conference

ConferenceAcademy of Management Conference
CountryUnited States
CitySan Antonio
Period7/08/11 → …

Abstract

This paper examines micro-level socio-psychological factors that shape the
performance of strategic alliances. We use sensemaking theory to discuss the
importance of these factors in complement to extant alliance theory, which has largely been rooted in economic logic with a particular concern for issues at the interstice of organizations, such as those of trust and control. Using the longitudinal case of a major strategic alliance in the information and communications technology sector we demonstrate that while economics and relational issues matter, this framework is insufficiently robust to explain alliances’ formation and evolution. This is in part due to the fact that inter-organizational activity is derived from processes operating within each partner firm’s micro-context. Managerial sensemaking is at the core of these processes and it represents an important area of focus to surface overlooked structural and behavioral factors influencing the performance of strategic alliances.