5 ALLIANCE DESIGN
The problem of how alliance partners can exercise sufficient control over the direction of their alliance is well recognized. In the alliance design stage, partner firms confront the challenge of designing an alliance structure that provides them with sufficient control to realize their objectives. Insufficient control limits a partner’s ability not only to protect but also to use the resources it provides efficiently. Alliance partners thus are motivated to create an alliance design that fulfils the following objectives: to increase the likelihood of attaining individual and collective objectives, to create safeguards to reduce the impact of potential exchange hazards and to increase their ability ...
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