ABSTRACT
Multi-partner alliances (or multi-lateral alliances) are partnerships formed by more than two parties. A multi-partner alliance enables fi rms to align multiple sets of complementary resources, often with the aim of creating additional synergies or complying with increasing customer demands. Examples of multi-partner alliances can be found in a variety of industries, from the semiconductor and airline industries to agri-food industries. If properly managed, a multi-partner alliance strategy can be a win-win for all parties involved. However, whereas dealing with adversity is relatively straightforward in an alliance with only two partners, governance within a multi-partner alliance becomes more complex, as the one-to-one relationship is replaced by a one-to-many relationship. The increasing number of parties presents the managers involved with a particular challenge. In order to capture the potential synergies that come with a multi-partner alliance, these managers must prevent and control free-riding behaviour by their counterparts. The opening sections of this chapter explore this multi-partner alliance challenge and elaborate on the mechanisms that managers can use to deal with it. The alliance development framework is used in the following section to present specifi c managerial guidelines for multi-partner alliances. The chapter concludes with a summary and a case illustration.
