Chapter 6: Alliance Decision Makers And How They Shape Alliance Performance

In trying to understand how to improve alliance performance, executives and scholars have neglected to consider the role of alliance decision makers (ADMs) and the profound influence they can have in how partners are managed and subsequently on alliance performance. Alliances can only add value if put into operation in a manner that proves effective. In most firms, one or more key executives have several formative and ongoing roles affecting almost all aspects of how alliance outcomes are managed. Such ADMs matter because, in addition to being involved in defining their firm’s initial alliance choice policies and partner selection processes, they also are often involved in setting the objectives to be achieved with the partner, defining the way in which the relationship with the partner will be governed, nurturing and supporting the organization’s partner management cultures and capabilities-development processes, and designating who on their staff will directly interact with the partner. In addition, they also shape how handoffs might occur from one decision maker to the next throughout the alliance life cycle. Surprisingly, unlike with other senior leaders, scholars have paid little attention to either these ADMs or how their orientations and biases affect their decision making. We remedy this situation by tracing and analyzing how ADMs’ attributes affect how alliance process will be managed at various stages of the alliance life cycle.