ABSTRACT
This review identifies relevant theories and methods from the strategy literature on organizational learning and from the finance literature on valuation concerning strategic alliances. It proceeds as follows. The first section reviews answers to preliminary questions about strategic alliances, serving as an introduction to the topic for readers. The next section reviews earlier strategy literature on the marketbased view, resource-based view, knowledge-based view, and transaction cost approaches, analyzing strategic alliances in the light of each. It also reviews relevant financial methods of valuation, including the discounted cash flow method, real options method, and event study method, again applying them to the case of alliances. The final section provides a summary of studies on value creation by strategic alliances.
