Chapter 6: Multilevel Embeddedness in Multilateral Alliances: A Conceptual Framework

Alliance relations are institutional arrangements in which transactions take place (Lomi, 1995; Richardson, 1972). They constitute a transaction sphere that is an alternative governance mode to market transactions and vertical integration (Richardson, 1972). Alliances have commonly been formed among two firms, a dyad, but increasingly by a block of firms, an alliance network (Doz & Hamel, 1998; Gomes-Casseres, 1996; Lazzarini, 2007; Van-haverbeke & Noorderhaven, 2001). The literature draws up a picture of alliance networks and constellations clustering around a focal firm or a focal project (Das & Teng, 2002; Doz & Hamel, 1998; Van-haverbeke & Noorderhaven, 2001), while our definition of multilateral alliances (MLA) is formalized multipartner interfirm relations that involve not only a collection of dyads, but also central organization and common alliance processes.