Identification of critical factors for strategic alliances: An investigation in the information technology industry

Intense competition in the marketplace is forcing organizations to examine different ways by which they could enhance or retain their competitive edge. Strategic alliance is one such option through which an organization can leverage its resources to emerge as effective competitors. These alliances are organizational arrangements and operating policies through which two or more separate organizations may share resources to achieve mutually desirable objectives.; Existing research on strategic alliances has focused at aggregate issues which fails to systematically address several critical issues. The present research addresses the following issue specifically: Identification of critical factors that relate to the performance of an alliance.; The information technology (IT) industry is characterized by rapid change and increasing pervasiveness. The spillover effect of developments in this industry can be felt across many industries. The importance of IT in shaping national competitiveness is being increasingly recognized by countries all over the world. Given the growing importance of the IT industry, the present research focuses on strategic alliances in this industry.; A dual methodology has been used for this study. Data were collected using interviews and surveys. A convenience sample has been used for data collection. Several large and medium-sized organizations were visited to collect specific data about strategic alliances. The unit of analysis for this study is a strategic alliance that involves at least one firm which belongs to the IT industry.; Factor analysis was used for validating the factor structure of items included in the questionnaire to measure the critical factors. A composite score for performance of an alliance was determined by calculating the mean score of the rationale for initiating the alliance and the importance attached to it. Multiple regression analysis was used to determine if these factors are in fact related to performance.