THE COEVOLUTION OF STRATEGIC ALLIANCES

This paper proposes a co-evolutionary theory of strategic alliances. T he paper proposes a framework which views strategic alliances in the c ontext of the adaptation choices of a firm. Strategic alliances, in th is view, are embedded in a firm's strategic portfolio, and co-evolve w ith the firm's strategy, the institutional, organizational and competi tive environment, and with management intent for the alliance. Specifi cally, we argue that alliance intent may be described, at any time, as having either exploitation or exploration objectives. We further disc uss how the morphology of an alliance-absorptive capacity, control, an d identification-may be isomorphic with its intent, and, in the aggreg ate, drive the evolution of the population of alliances.