ABSTRACT
An alliance network functions as a repository of knowledge, resources and information, and can potentially enhance a firm's competitive advantage. This chapter shows that the cost–benefit balance makes it critical to understand the nature of alliance networks, as well as the role of a firm's network position and how a firm can leverage its position to its advantage. It presents the stages of the alliance development framework to an alliance network view to provide insights into the efficient governance of single alliances in an alliance network. High-performing firms tend to recognize the importance of their alliance networks and consider the formation and management of single alliances in the context of the entire alliance network. The governance of alliance networks is more complex than the governance of single alliances and alliance portfolios, owing to the greater number of direct and indirect relationships to be considered. The chapter discusses network position and management and concludes with a summary and a case illustration.
