Organizations enter into multiple alliances to diversify the risk involved due to partial commitment by alliance partners. Alliances, by nature, are open-ended, and if not managed carefully, can nullify all the potential benefits from the alliance. Managing different kinds of risks in a strategic alliance is a complex task. Management executives, before they proceed to negotiate the alliance, need to assess the risks involved in the alliance. An inability to assess and manage the risks involved would lead to an unsteady alliance that devalues the organization. Strategic alliances can be seen as a risky ...
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