The Influence of Micro-Contextual Dynamics on the Performance of Strategic Alliances

This study explores the issue of strategic alliances' performance from a managerial perspective. Sensemaking is used as a theory lens to analyze the narratives of multiple managers involved in the development of a strategic alliance within the Information and Communication Technology (ICT) sector. Results indicate that strategic alliance managers' perceptions and decisions relative to alliances are shaped by individual and group level factors. In particular identity, commitment, and more generally micro-contextual dynamics that extend well beyond the traditionally cited economic, competitive and resource-related rationales feature in explaining alliances' development and performance. This suggests that a managerial sensemaking perspective may complement traditional approaches in evolving towards a more robust understanding of strategic alliances' performance.