Chapter 8: Strategic Choices Between Alliances and Acquisitions: What Do We Know and Where Do We Go from Here?

This extensive literature review critically examines the theoretical underpinnings of governance mode choices between strategic alliances and mergers and acquisitions (M&As). By synthesizing insights from transaction cost economics (TCE), resource-based view (RBV), social network theories, institutional theory, and real options theory, the author provides a holistic framework to guide decision-makers navigating the complex landscape of strategic decision-making. By meticulously exploring each theory and in-depth analysis of empirical findings, the author uncovers the consistency and inconsistency in the literature, shedding light on the multifaceted considerations that shape governance mode decisions and offer future research opportunities.