Alliance capability, governance mechanisms and stakeholder management in complex settings

Abstract

In today’s business environment, inter-firm alliances of simultaneous cooperation and competition (IASCC) have become very important for enhancement of internal resources as well as market shares of firms. Evidence suggests that majority of the alliances today occur between competitors or within the same industry. Given the increasing importance and complexity of IASCC, issues of stakeholder management and governance structures in such alliances need to be more clearly understood. Using primary data collected from Indian firms in different sectors, this paper explores the antecedents of governance mechanisms in IASCC from a stakeholder perspective by viewing alliance partners as stakeholders. It is argued that alliance capabilities are important determinants of governance structures. Moreover, the role of these capabilities is moderated by the strategic context of the IASCC in determining the nature of governance structures.