Dangers of dependence: The impact of strategic alliance use by small technology-based firms

This study examines the else of strategic alliances by small technology-bas ed firms. These firms, who have innovative ideas and products belt often la ck the resources and experience to fully capitalize on them in a timely fas hion, are ideal candidates for alliance arrangements. It is argued, however ; that firms who rely on alliances, as opposed to those who choose them as one option among several alternatives, may pur themselves in a dependant po sition from which they cannot fully capture their share of the gains from a lliance relationships. Results indicate that while most small technology pr -ms utilize alliances, dependence on alliances is associated with poorer pe rformance. Implications of these findings are discussed for both research a nd practice.