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Formation of Strategic Alliances in Business Services: Towards a New Client-Oriented Conceptual Framework

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  • P. N. O' Farrell
  • P. A. WOOD

Abstract

Interjlrm collaboration has become an increasingly common organisational form in the pursuit of competitive advantage. Since most previous research has concentrated upon the manufacturing sector; we seek to redress this imbalance by considering business services. We review several theoretical frameworks, and argue that the static network theory literature fails to recognise that relations between partners and with the client are as crucial as the hybrid-environment interjiace and, therefore, cannot explain the emergence of hybrid organisational forms. Most fundamentally we argue that the client must be incorporated within the conceptual framework. Two stages of the evolution of the strategic alliance (SA)-client relationship are important: (i) formation and (ii) subsequent development. The key decision for the firms in the SA is how to enter into joint production with the client. The peflormance of a SA cannot be judged purely in terms of the participants since a vital dimension of success is how well the ' S A performs relative to the expectations of clients.

Suggested Citation

  • P. N. O' Farrell & P. A. WOOD, 1999. "Formation of Strategic Alliances in Business Services: Towards a New Client-Oriented Conceptual Framework," The Service Industries Journal, Taylor & Francis Journals, vol. 19(1), pages 133-151, January.
  • Handle: RePEc:taf:servic:v:19:y:1999:i:1:p:133-151
    DOI: 10.1080/02642069900000008
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    Cited by:

    1. Howells, Jeremy, 2006. "Intermediation and the role of intermediaries in innovation," Research Policy, Elsevier, vol. 35(5), pages 715-728, June.
    2. Svetlana Besklubova & Xueqing Zhang, 2019. "Improving Construction Productivity by Integrating the Lean Concept and the Clancey Heuristic Model," Sustainability, MDPI, vol. 11(17), pages 1-32, August.
    3. Halynska, Yuliia, 2017. "Developing The Strategies For Implementation Of Collaborative Alliance In The Extractive Field," EUREKA: Social and Humanities, Scientific Route OÜ, issue 4, pages 13-20.
    4. Anna Lejpras, 2019. "Determinants of export performance: differences between service and manufacturing SMEs," Service Business, Springer;Pan-Pacific Business Association, vol. 13(1), pages 171-198, March.
    5. Jeremy Howells, 2010. "Services and Innovation and Service Innovation: New Theoretical Directions," Chapters, in: Faïz Gallouj & Faridah Djellal (ed.), The Handbook of Innovation and Services, chapter 3, Edward Elgar Publishing.
    6. J Howells & B Tether & F Gallouj & F Djellal & C Gallouj & K Blind & J Edler & C Hipp & F Montobbio & N Corrocher & A Macpherson & D Banach, 2004. "Innovation in Services: Issues at Stake and Trends," Working Papers halshs-01113600, HAL.

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