Alliances as strategic tools A cross-industry study of partnership planning, formation and success

Purpose - Despite the fact that most studies have been pointing to high failure rates, collaboration remains increasingly popular as an organisational form of economic activity, particularly in technology-intensive industries. This paper aims to present a cross-industry qualitative study of the motives and drivers, the decision-making process, and the success/failure factors of partnership formation. Design/methodology/approach - The results of interview data collected in the computer, telecommunications and media industries (CTMI) indicate that the need to utilise the full value-creation potential of the firm's resources has greatly contributed to the increasing popularity of partnerships in these industries. Findings - Behavioural characteristics, e.g. commitment, coordination and communication among others, are found to play a more significant role in explaining overall partnership success compared with organisational characteristics such as structure and control mechanisms. Originality/value - The study pays particular attention to the necessity to deal with contradictory interests across the firm's partnerships. Balancing numerous relationships is a thorny managerial act and an issue which must be incorporated in the literature on collaboration. In addition, the findings of the research provide some fundamentals for maximising the benefits of partnering activities in the light of practical management.