Maker-buyer strategic alliances: an integrated framework

Purpose - Although existing partial theories contribute to scholarly understanding of strategic alliances, the lack of a comprehensive framework to explain strategic alliances is unfortunate. The purpose of this paper is to develop an integrated framework for maker-buyer strategic alliance performance.Design methodology approach - Drawing on the concept of embeddedness developed by Granovetter, this paper argues that maker-buyer alliances are economic actions intended to pursue synergies; meanwhile, these economic actions are embedded in social contexts.Findings - This paper argues that the economic goal of firms entering alliances is to combine their complementary resources to create synergies. To achieve this goal, managers must efficiently manage the economic problems associated with such alliances, including searching for partners with complementary resources, allocating value-added activities correctly, establishing efficient interorganizational routines, and introducing proper governance structures. Furthermore, alliances are embedded in their social contexts. Firms are constrained by their specific social environments and behave accordingly, impacting their performance. It is difficult for firms to modify the contexts in which they are embedded without strong strategic intent. The social contexts in which firms are embedded may also be sources of sustainable competitive advantage or disadvantage.Research limitations implications - Several managerial implications and future research directions are presented.Originality value - This study, by integrating economic and sociological theories into a framework and focusing on maker-buyer alliances, depicts not only the full picture but also the necessary details of maker-buyer alliances for scholars and practical managers.