2 ALLIANCE STRATEGY FORMULATION
During the alliance strategy formulation stage, a firm decides which governance mode is appropriate for realizing its objectives, that is, how it will organize the procurement of its desired resources. We distinguish three prototypical types: ‘make’, such that firms gather resources internally through inter-unit exchanges or through mergers and acquisitions; ‘buy’, which means firms procure resources through discrete market transactions organized by simple contracts; and ‘ally’, which refers to alliance arrangements organized through complex contracts with external parties to procure resources. This chapter is divided as follows. To inform their decisions about alliance strategy ...
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