Avoid Transactional Mentality: A Strategic Alliance Has to be Durable


 
Strategic Alliances > Forum

In the forum section you will find recent discussions within this knowledge area.


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 Blo...Sign up
 

   
Special Interest Group Leader

Interested? Sign up for free.


Strategic Alliances
Summary
Forum
Best Practices
Expert Tips

Resources

 



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2019 12manage - The Executive Fast Track. V15.0 - Last updated: 19-4-2019. All names of their owners.