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.