Avoid Transactional Mentality: A Strategic Alliance Has to be Durable

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Strategic Alliances > Forum > Avoid Transactional Mentality: A Strategic Alliance Has to be Durable

Avoid Transactional Mentality: A Strategic Alliance Has to be Durable
Jaap de Jonge, Editor, Netherlands
To be sustainable in the long-term, an alliance must continually enable mutual value creation. After an initial succesful period, a strategic alliance can still falter when a transactional mentality sets in among executives.
In such mentality, the "partners" focus more on extracting value for themselves and less on creating mutual value, while the last thing should be the ostensible purpose of an alliance.
A transactional focus is more likely to occur when the design of an alliance is too rigid or fails to consider how the alliance might later be dissolved by common agreement. In such cases, the alliance may become irrelevant from the perspective of ongoing mutual value creation. It is then in fact an M&A in disguise.
Source: Bart De Roover, "Designing Durable Alliances: Lessons From Renault-Nissan", INSEAD Blog.
 

     
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