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Performance in strategic alliances: an analysis of objective and subjective measures

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  • Mario Franco

Abstract

Strategic alliances have emerged as an alternative mechanism for firms that, due to limitations of size, economy and technology, cannot in the short term get hold of resources to reach key activities. This study intends to show the type of criteria used to measure performance within a strategic alliance. Therefore, to attain this objective, the results obtained from an empirical investigation based on a sample of 114 alliances formed by Portuguese firms are presented. From these results, this study concludes that to evaluate strategic alliance performance, potential partners, managers and institutions are advised not only to turn to measures of a financial character, but rather to a combination of objective indicators and others of a subjective nature, such as partners' satisfaction. Thus, this study contributes to the literature and the interface between cooperative relationships and strategic entrepreneurship. Several implications are also presented.

Suggested Citation

  • Mario Franco, 2011. "Performance in strategic alliances: an analysis of objective and subjective measures," International Journal of Entrepreneurial Venturing, Inderscience Enterprises Ltd, vol. 3(1), pages 84-100.
  • Handle: RePEc:ids:ijeven:v:3:y:2011:i:1:p:84-100
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