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This paper aims to focus on understanding three dimensions of international alliance formation by small to medium‐sized enterprises (SMEs): the role of internal actors, planning/opportunity management, and organizational learning.

The three dimensions form a proposed model of international alliance formation which is examined using semi‐structured interviews with 16 biotechnology SMEs from Montreal (Canada) and 12 from Boston (USA).

Findings deepen the understanding of the firm's internal development of international alliance strategy. Results generally support different roles of organizational actors in international alliance formation, often a combination of planning and opportunity management, and signal rather weak administrative routines to ensure organizational learning from the alliance experience. Interestingly, alliance formation strategies vary across the two cities (countries). Age of the firm, development phase, human and financial resources, and competencies may explain these differences.

Limitations include a single respondent in each firm, sample size, and single sector (biotechnology). Future longitudinal research could combine information from and about the implication of all actors and their networks during alliance formation and examine the process by alliance functions (R&D, production, marketing) and governance modes (equity, non‐equity).

Results suggest weaknesses and potential avenues to be explored by managers.

To the authors' knowledge, this is a first attempt to model the internal dimensions of alliance strategy formation for SMEs, integrating the role of actors, planning and opportunity, as well as learning. Multiple quotations provide a rich environment for understanding practice.

By reviewing the literature, this paper explores the current priorities and future directions of alliance post-formation dynamics research.

This paper collects and analyzes empirical studies on alliance post-formation dynamics that were published between 1990 and 2021.

Current research on alliance post-formation dynamics can be structured as antecedents and outcomes of dynamics and their moderating effects. Among these topics, antecedents of dynamics have been addressed in a large body of research encompassing diverse theoretical mechanisms and levels of analysis. However, there remain debates regarding the outcomes of alliances post-formation dynamics.

First, this paper enriches the theoretical plurality of the field by integrating the antecedents and outcomes of dynamics and their moderating effects. Second, this paper proposes a new scholarly perspective – “alliance dynamic capabilities” – to address the “disruption vs adaption” debates regarding the outcomes of alliance post-formation dynamics in current research. Third, this paper presents several promising future research directions with the aim to advancing the literature on alliance post-formation dynamics.

The purpose of this paper is to explore drivers of alliance formation in a specialized supply chain from a manager’s perspective, focussing on firm-specific resources, resources embedded in inter-firm relationships and capabilities under the control of the focal firm.

This paper focusses on the resource-based view to obtain insights from the analysis of a manager survey conducted in Canada’s beef sector, applying a logistic regression approach to study alliance formation.

In identifying significant roles for resource richness and diversification of resource usage, the analysis highlights the importance of resource characteristics underlying factor market imperfections as drivers of alliance formation in a single primary input supply chain. The results suggest that resource heterogeneity is important for alliance formation and organizational success in specialized supply chains.

If previous alliance-related experience of managers, controlled for in the underlying cross-sectional survey, serves as an approximation for persistent unobservables impacting the alliance formation decision, we may face spurious state-dependence.

Managers interested in building compatible alliances in specialized single primary input supply chains may benefit from an improved understanding of the differential role of resource characteristics and resource heterogeneity for alliance formation, as these can function as a source of competitive advantage.

The analysis provides new insights from an individual manager’s perspective on alliance formation drivers in a specialized agri-food supply chain, thereby solidifying extant findings on alliance formation obtained in other sectors. The study contributes to the understanding of the role of resources in alliance formation with regard to prior relationship experience, resource heterogeneity and thus causal ambiguity, thereby also contributing to the debate of the role of relational capabilities vs firm-internal resources for sustained competitive advantage.

While previous research has developed unclear positions about the role of organizational resources on alliance formation, the purpose of this paper is to focus on financial slack resources to clarify the conditions that facilitate the formation of strategic alliances. Building on the behavioral theory of the firm, this paper theorizes that internal and external financial slack resources, measured as cash holdings and financial leverage, incentivize managers to form alliances, because they protect them against the risk of alliance failure.

Complete data were collected from 400 biotech public companies for the period from 2000 to 2015. The data set considered alliances among over 2,200 public and private companies. Hypothesis testing relied on generalized estimating equations.

Cash holdings positively impact alliance formation; financial leverage negatively impacts alliance formation; cash holdings and financial leverage interact in the prediction of alliance formation.

While research in financial slack resources shows equivocal results, this study illustrates that they exercise a significant effect when it comes to the choice of forming strategic alliances. Limitations include the focus on multiple forms of alliances, possible restrictions in the external validity of the findings, and a lack of measurement of explanatory mechanisms.

Findings help managers understand the financial conditions in which they should choose to form or avoid alliances; findings help managers select alliance partners.

The study contributes by proposing a new outlook on alliances; identifying financial resources as alliance predictors when previous research focused on intangible resources; offering new insights into the often equivocal outcomes of financial slack; building an uncharted bridge between the finance and alliance literatures.

The aim of the study was to determine how the different types of resources possessed by a small- and medium-sized enterprise (SME), in conjunction with the environmental uncertainty perceived by the SME's managers, affect SME's alliance formation.

Personal interview method was used to collect responses to a survey instrument from Indian SMEs. Logistic regression technique was used to analyze the responses obtained from 127 manufacturing enterprises.

The study finds that while both tangible and intangible resources possessed by an enterprise positively influence the enterprise's alliance formation, the influence of intangible resources is significantly stronger. The authors also observed the interactive effect between each resource type and environmental uncertainty to be a significant predictor of alliance formation.

The study does not account for temporal effects such as changes in resources and perceived environmental uncertainty, which may affect alliance formation. Similarly, because the data were obtained from a geographically restricted sample, replication of the study in other geographies may be necessary for generalizing the results.

The paper responds to the call for research to link firm resources and perceived environmental uncertainty toward explaining alliance formation by SMEs. The study went beyond making a distinction between the two types of resources by explicating how the interaction of resource type and environmental uncertainty will affect alliance formation.

Based on the transaction cost theory, this paper aims to investigate the impact of cultural distance on international strategic alliance formation and its underlying mechanisms.

This paper uses the investment of foreign firms in the Chinese Venture Capital market as an empirical background, Obtaining VC data from Zero2IPO Private Equity, CVsource Investment Database (2001–2015). This paper chooses the Logit regression method, according to Lind’s three-step method to test the inverted U-shaped relationship.

The empirical analysis of foreign venture capital firms invested in China revealed that there is an inverted U-shaped relationship between cultural distance and the possibility of international strategic alliances. This relationship is the result of two opposing mechanisms, which are the need and the feasibility of international strategic alliances. In addition, this study further examined the moderating effects of social embeddedness and social reputation, revealing the boundary effects on the complex relationship between cultural distance and possible international strategic alliance formation.

This study focuses on cultural difference, which is a key factor leading to a firm’s transaction costs. Based on the transaction cost theory, this paper investigates the impact of cultural distance on international strategic alliance formation and its underlying mechanisms.

March’s 1991 work on exploitation and exploration has been studied in many different industries. The purpose of this paper is to analyze signals emanating from exploration and exploitation alliances within the pharmaceutical industry context. Specifically, the authors explore market reactions to announcements of alliance formations based not only on alliance type but also in terms of their marketing intensity and leverage.

The authors employ a two-stage event-study market model using a two-day event window (event days 0, +1), creating cumulative abnormal returns (CARs). In the second stage, the authors regress the CARs against an array of control and explanatory variables.

Findings suggest that even though firm announcements of exploration and exploitation formations initially generate favorable market reactions, the former has a greater impact on CAR relative to the latter. Furthermore, leverage and marketing intensity moderate the relationship between firms’ alliance formation announcements and CARs generated. In particular, firms’ alliance formation announcements generate relatively greater market reactions at lower (higher) levels of the firm’s leverage (market intensity).

Event studies are valuable for gauging initial impressions of management action, but they are not meant to address long-term value creation. While market reactions suggest the likelihood of an alliance’s success or failure, managers also assess the risk to a firm’s financial health should the alliance fail. As a result, announcements that signal the firm has discretionary capabilities to ameliorate the effect of a failed alliance are better received.

This study is the first to analyze the stock market’s perception and valuation of different types of risk, classified by exploration vs exploitation alliances. The study also contributes to the literature by analyzing how investors use the information about a firm’s financial leverage and marketing activities to fine-tune their valuation of different types of risk-taking activities.

Although previous research has reached an agreement that finding appropriate alliance partners and reducing selection uncertainty are important for achieving high alliance performance, it has not explored (1) how organizations reduce selection uncertainty, (2) what mechanism enables organizations to do so, and, more generally, (3) how organizations form alliances. This research examined these research questions by conducting fieldwork at 20 biopharmaceutical organizations in the Untied States. I identified three mechanisms for reducing selection uncertainty, including the (1) relational, (2) internal, and (3) contextual mechanisms. One of the findings implies that alliances do not always emerge out of embedded ties, and that there exist variations in organizational usage and reliance on ties and personal rapport in constructing interorganizational networks.

Literature on strategic alliances (SAs) is large, diverse and growing. It needs synthesis and analysis for application and further research. Authors have also underlined the need for studies covering differences in structuring, situational application and management of alliances. This systematic literature review aims to cover dyadic, network and ecosystem (DNE) alliances with theory, context, characteristics and methodology (TCCM) methodology covering the life cycle stages of an alliance (pre-formation, formation and management) to uncover insights which inform practice and guide further research on this important subject.

This paper follows systematic literature review (SLR) methodology for research design and article selection and TCCM methodology for analysis. It also analyses the literature on DNE alliances using a nine-box matrix with DNE alliance forming one axis and three alliance lifecycle stages of pre-formation (alliance objectives), formation (alliance design and operationalisation) and post formation (alliance management) stages along the other axis.

Analysis indicates focus on individual firms and their own customer value proposition (CVP) in the dyadic and network alliances. Industries with fast-paced technological change benefit from loosely coupled alliances. Social context and social exchanges leading to collaboration and collective strengths mark network alliances, with a focus on knowledge creation and dissemination. Ecosystems focus on a collective CVP, which guides alliance behaviour. Ecosystem leadership guides this purpose through governance for sustained competitiveness. Negative consequences (dark side) of alliances can be mitigated by careful design, formation and management of DNE alliances.

While literature has focussed on static view of alliances in their industry or social context, this literature review analyses alliances along the dyadic, network and ecosystem typology, thus providing a new lens to study alliances. The review also recognises that alliances evolve over their life-cycle stages and observes their progression through their lifecycle stages aids for fuller comprehension of their behaviour. Areas for future research in structuring, leadership, value co-creation and technological change set an agenda for future research.

Dynamic managerial capabilities are drivers of alliance performance. The analysis using the nine-box matrix allows managers to better appreciate the options that exist and the consequences of their actions. Situating their alliance in the appropriate box can allow managers better plan, operationalise and manage their own alliances.

This systematic review compares and contrasts DNE alliances in extant literature and through their lifecycle stages. Insights from TCCM analysis and the nine-box matrix provide unique contribution to both theory and practice in this large and growing domain.

The purpose of this paper is to investigate how international R & D alliances are formed during industry transition from the point of view of the local Chinese partner.

Review of industry data provided by Chinese Statistical Office coupled with four in-depth case studies.

The nature of the technology, the characteristics of partners and the previous cooperation experience between partners are significantly related to the R & D alliance formation. The research also suggests that during this fast-growing transition period, Chinese local firms preferred non-equity contractual agreements over equity joint venture such as R & D alliance modes, and Chinese local firms favoured American and European multinational corporations (MNCs) as their alliance partners over MNCs from other countries, including the highly developed Japan and Korea.

Single-industry focus (telecommunications), and anonymization of cases because of confidentiality of case firms. Single-country focus (China).

Firms in China and other emerging countries can improve their technological capability (TC) by choice to facilitate future alliance formation to access and learn the latest technology from their alliance partners, especially during the transition period of an industry and when mature and emerging technologies co-exist.

This paper refines alliance theory by focusing on an industry in transition and analyses formation decision factors from the point of view of the smaller domestic partner – usually studies do not differentiate as to industry maturity and inequality between partners.