Managing alliance networks: Emerging practices of multinational corporations

Executive Overview Most firms are becoming increasingly embedded within alliance networks. Despite this growing trend, the ways and means by which these alliance networks are managed are not clear. Yet, it is important for managers to understand the processes and practices through which firms can respond to both the promise and challenge of managing alliance networks. To shed new light on this important topic, I interviewed a series of senior multinational corporation executives who stated clearly that alliance network management is a very important task that goes beyond optimizing individual alliance performance. These managers indicated that they have begun to establish a variety of structures and practices at multiple levels within their firms to improve their abilities to derive additional value from their networks of alliances. Based on these interviews, I present a framework for the management of alliance networks intended to inform managers of emerging practices in this increasingly important aspect of strategic management.