ABSTRACT
Alliances tend to be asymmetrical in nature, such that a dominant partner has a bargaining power advantage due to its superior resource endowments. When such power asymmetries characterize the relationship, alliance partners are engaged in an asymmetrical alliance; the dominant firm can exert power, and the weaker firm risks being taken advantage of. Alliance partners—especially weaker ones—face a unique challenge: finding the balance between exploiting resource asymmetries to create value while still preventing the escalation that can result from power asymmetries. This chapter details on this asymmetrical alliance challenge and elaborates on the mechanisms—offensive, defensive and acceptance tactics—that managers might use to deal with it. Connecting asymmetrical alliances with the alliance development framework, the chapter concludes by offering guidelines for decision making.
