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A large number of industrial manufacturers are forming alliances with partners throughout the supply chain with the focus on improving competitive position. These potential improvements may vary by the type of alliance being formed. In spite of this, little is known regarding what motivates a manufacturer to form an alliance at various channel positions (e.g. supplier versus customer alliances) and what the resultant performance outcomes are from these different types of alliances. This paper examines the importance manufacturers place on various motives based on the channel position of alliance. Further, the paper compares the objectives actually achieved across alliances with manufacturers and partners at different channel levels.

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