Strategic Alliances and Partner Asymmetries

The question of whether the attributes of sponsoring firms and their relationships to each other (and to their venture) influence the efficacy of their strategic alliances is investigated. The influence of the sponsoring firm's asymmetries -- in relative asset size, national origin, and venturing experience levels -- on venture performance is tested by analyzing 895 strategic alliances competing in 23 industries for the period 1924-1985. The results indicate that ventures are more successful when partners are related (in products, markets, and/or technologies) to their ventures or horizontally related to them than when they are vertically related or unrelated to their ventures. Ventures also seem to last longer between partners of similar cultures, asset sizes, and venturing experience levels and when venture activities are related to both sponsors. Finally, sponsor traits and sponsor venture relationship traits do not appear to offer much explanatory power in models of venture survival, duration, and success.