Developing Effective Alliance Partnerships: Lessons from a Case Study

This paper describes the three-year development of an alliance of high-technology partners and end-users in the industrial lubrication sector. The principal partner envisaged a moderate expansion of its activities through utilising the expertise of an external partner. After three years, a more complex alliance had emerged with a very different set of products. The alliance was dependent on collaborative relationships between technology and knowledge, partners and users, with the principal partner playing only a coordinating role. In this alliance learning, innovation and opportunistic experimentation were critical in determining strategic direction, and their strategic role is worthy of closer examination. The expertise of partners influenced both the strategic and technological direction of the alliance. Power bases and relationships between partners fluctuated as the alliance's products were transformed into a final knowledge-based service. A key question is the profound effect - both intended and unintended - of governance structure on alliance activities.