International Journal of Applied Strategic Management (ISSN: 1742-8204) Volume 1 Issue 3
Associate Professor of International Business and Strategy
Nottingham University Business School Malaysia Campus
The University of Nottingham
Previous studies highlight the evidence of many alliances which is collapsed in the mid-life of their partnership. This article aims to enrich the knowledge in this area by exploring the essential factors in the mid-life of alliances and provide managerial suggestion for firms engage in this type of partnership. The alliance development itself could be divided in three stages: formation, operation and evaluation . The operational phase is the most critical phase of alliance when the tension of the conflict comes to the fore and the interaction between parties becomes more intense. During this phase, people experience working on a daily basis with its partner, which probably has a totally different culture, organization, behavior, etc. This mid-life phase of the alliance is considered critical to further alliance development which is so fragile and determines the continuity/discontinuity of the alliance. Four important variables in this stage: partner contribution, control, conflict, and communication will be further analyzed in this article.
Keywords: Strategic alliances, operational phase, partner contribution, control, conflict, communication