ABSTRACT
The cross-sector alliances provide opportunities for partners to share resources and expertise, which allows more effective solutions in keeping with individual and communal objectives. Although cross-sector alliances can enhance a firm's competitive position, they also present a unique challenge, in that firms wishing to realize their private objectives must reconcile a wide range of differences that give rise to conflicts. The chapter discusses this cross-sector alliance challenge and focuses on the mechanisms that managers can use to deal with it. A cross-sector alliance is associated with the alliance development framework to develop guidelines for decision-making. The chapter focuses on three prototypical cross-sector alliances: university–industry partnership, public–private partnership and non-governmental organization–business partnership. It presents three areas that managers may focus on in order to steer their cross-sector alliance towards success. These are enforcing power neutrality, creating autonomy and transparency and building a culture of collaborative commitment. The chapter concludes with a summary and a case illustration.
