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Building Capabilities for Alliance Portfolios
Author
Koen H. Heimeriks, Elko Klijn and Jeffrey J. Reuer

Published
Feb, 2009

How do alliance managers make their alliances grow and perform better? Based on a sample of 192 firms managing over 3,400 strategic alliances this article investigates the use of fourteen different capability-building solutions, and analyses how their use relates to the size and/or the success of the alliance portfolios concerned.
The solutions are grouped in four categories - functional and staffing; tool-based, training and third party solutions - and the authors draw conclusions about which particular groups - and individual methods - appear to be associated with alliance portfolios’ success in increasing size or improving performance.
Amongst much other advice for managers, their ‘Rules of Engagement’ propose that underperformance can be best addressed by appointing an alliance manager, and disseminating alliance-related knowledge within the firm via an intranet, while excelling in expanding portfolios involves the implementation of codified best practice across the portfolio, and the use of an intercultural training program, which can help managers avoid inappropriately applying lessons from one alliance to another.

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