ABSTRACT
The alliance partner selection stage involves the choice of a partner or group of partners with which a firm seeks to realize its objectives. This chapter details on partner fit—the comparative inter-firm differences related to certain attributes or dimensions that continually shape the pattern of interaction between partners. First, insight is offered in resource complementarity, the extent to which the joint use of separate resource endowments yields more value than the value generated if each set of resources were used independently. Second, the chapter details on partner compatibility, the degree to which partner firms share similar characteristics. If partners are highly compatible, such as in their organization, culture or networks, they may be more likely to realize their objectives. Partner misfit instead tends to jeopardize the relationship. Pre-existing knowledge about the degree and content of misfit provides valuable information for improving the design and management of any alliance. The chapter concludes by detailing on a five-step approach for firms to use in their partner selection decisions. Its application results in the selection of a partner with which to enter into alliance negotiations.
