JUSTIFYING STRATEGIC ALLIANCES AND PARTNERING - A PREREQUISITE FOR VIRTUAL ENTERPRISING

The objective of this paper is to help define and introduce the concep t of justifying strategic relationships and agreements among enterpris es. When enterprises choose major strategic projects they go through a management decision process that includes planning, analysis, evaluat ion, implementation, and improvement (auditing) of these projects. Ana lytical and decision tools to aid in strategic decision making are rel atively rare, tools to aid in strategic alliance formation, are almost non-existent. This paper presents the argument that strategic allianc es and relationships among enterprises can be analyzed using a strateg ic justification approach which will require that each side of a partn ership or alliance make a 'business case' that will justify such a rel ationship. Some of the pertinent managerial and research issues within the area of strategic alliances, along with a discussion on its evolu tion are presented. A tool that can support the strategic alliance man agement process is presented. An illustrative example for the tool and its supporting methodology will provide additional insights. (C) 1997 Elsevier Science Ltd.