Partner Risk: Managing the Downside of Strategic Alliances

Available Formats for this title


About this title

Purdue University Press
Professional & Scholarly


From the flaps of the dust jacket:Strategic alliances (SAs) can be extremely beneficial business mechanisms. They allow companies to expand product lines, acquire technology, stretch resources, increase productive capacity, enter new industries, access new markets, access countries and RTBs, expand areas of core competency, increase sales and market share, cut costs, acquire working capital, and increase revenues and earnings. Because SAs dramatically expand a company's strategic options, they are an indispensable weapon in the fight to maintain competitive advantage.But SAs are a two-edged sword. Many SAs are short lived, and those that survive are often plagued with problems. To make matters worse, SAs don't simply fail: they deteriorate into strategic and managerial nightmares where companies lose their products, customers, and markets - and even the entire company - to their strategic alliance partners.In this book Warnock Davies shows that the principal cause of SA problems and failures is that SAs come with an inescapable downside. Partners in SAs are exposed to the possibility of opportunistic behavior by the other partner - which Davies calls "partner risk." Because the consequences of partner risk can be extreme, senior management has lost some of its enthusiasm for SAs and career conscious executives have become skittish about accepting SA assignments.The good news is partner risk is manageable. Other books have focused on the benefits of SAs. Partner Risk begins where the upside books leave off, and provides executives and senior management with the knowledge and tools they need to manage the downside of strategic alliances. Partner Risk draws on the author's extensive experience as an executive, strategy consultant and professor of management and international business, and includes numerous examples from a wide range of industries and situations.