| Strategic alliances have become an increasingly common way for organizations to increase their competitiveness. Cognitive change is a key feature of alliance formation but has received little attention among management researchers. This study examined how and why the cognitions and actions of top management teams evolve over time during strategic alliance formation. This study also investigated what facilitates and/or impedes the mutual alignment of top management team cognitions and interpretive processes during interorganizational partnership formation.;During an 11-month study, I employed a real-time, longitudinal comparative case study, including interviews, surveys, and direct observation, to examine the context and underlying patterns of cognitive transitions made by the top management teams of two healthcare organizations trying to make sense of and influence the formation of an interorganizational partnership. I undertook real-time observation of the activities of the two top management teams involved in this merger, in a natural field setting, without knowing a priori the outcome. I also used surveys, interviews, and direct observation of top management team meetings to track the activities and changes within and between these groups.;The insights and findings of this study provide a richer understanding of cognitive change in relationships within and between organizations during alliance formation and shed new light on the ways an organization's basic character is fundamentally altered through forming partnerships. Furthermore, my findings suggest how top management teams might facilitate the implementation of a strategic alliance. |
