Justifying strategic alliances and partnering: A prerequisite for virtual enterprising

The objective of this paper is to help define and introduce the concept of justifying strategic relationships and agreements among enterprises. When enterprises choose major strategic projects they go through a management decision process that includes planning, analysis, evaluation, implementation, and improvement (auditing) of these projects. Analytical and decision tools to aid in strategic decision making are relatively rare; tools to aid in strategic alliance formation are almost non-existent. This paper presents the argument that strategic alliances and relationships among enterprises can be analyzed using a strategic justification approach which will require that each side of a partnership or alliance makes a ‘business case’ that will justify such a relationship. Some of the pertinent managerial and research issues within the area of strategic alliances, along with a discussion on its evolution are presented. A tool that can support the strategic alliance management process is presented. An illustrative example for the tool and its supporting methodology will provide additional insights.