Strategic Alliance performance: Economic Logic or Sensemaking?

Brown, David and Rinfret, Louis and Clarke, Ian (2011) Strategic Alliance performance: Economic Logic or Sensemaking? In: Academy of Management Conference, 2011-08-07.

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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.

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Contribution to Conference (Paper)
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Academy of Management Conference
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03 Sep 2012 12:52
Last Modified:
22 Nov 2022 13:52