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A large number of industrial manufacturers are forming alliances with partners throughout the supply chain with the focus on improving competitive position. These potential improvements may vary by the type of alliance being formed. In spite of this, little is known regarding what motivates a manufacturer to form an alliance at various channel positions (e.g. supplier versus customer alliances) and what the resultant performance outcomes are from these different types of alliances. This paper examines the importance manufacturers place on various motives based on the channel position of alliance. Further, the paper compares the objectives actually achieved across alliances with manufacturers and partners at different channel levels.

Establishing and maintaining successful alliances is an increasingly attractive, yet difficult strategic option for most firms in today's business environment. One component of the alliance process that has recently received considerable attention concerns the motivations of a firm and its potential partner to establish an alliance. This paper examines and compares alliance motives at three channel levels (manufacturer, distributor and logistical service supplier) and across three geographic trading regions (North America, Europe and the Pacific Basin). The managerial implications of the results are discussed with particular regard to developing and sustaining successful cooperative supply chain relationships.

Observes that strategic alliances continue to be an important research and business focus. Many firms struggle with how to link alliance theory with actual practice. In particular, managers question how long‐term commitment between alliance partners is developed and achieved. Traditional business practice has relied primarily on formal written contracts, but informal social contracts or verbal agreements are also utilized. Examines the role of formal and informal contracts in positioning alliances for long‐term success. Findings indicate that extremely successful alliances exhibited informal social contracts regardless of whether or not formal written contracts were included in the relationship. In other words, while a written contract may initially serve as an agreement to collaborate, the partners’ actions signify long‐term commitment to the alliance. This has important managerial implications for how key contacts in the alliance develop co‐operation, trust and loyalty which illustrates the strength of the informal contract.