 The dark side of alliances:: Lessons from Volvo-RenaultRobert Bruner and Robert Spekman European Management Journal, 1998, vol. 16, issue 2, 136-150 Abstract: This article explores sources of failure in strategic alliances drawing on field research into one of the most prominent alliance collapses in recent years. The alliance of Volvo and Renault married the two largest enterprises in their respective countries for economic objectives that virtually all industry experts applauded. Three years after its founding, the allies split apart in a bruising argument that left observers reassessing the future of alliances and of European integration. We believe that an explanation of the paradox of `good motive-unhappy outcome' here is to be found in the `dark side' of alliances that invites managers to make fatal errors. We identify six factors that undermined the Volvo-Renault alliance: misalignment of senior and operating managers, path dependence, alliance recontracting, leadership style, cultural differences, and time. Alliances are vulnerable to these and other errors. Lessons about them are relevant to all alliance managers and senior executives of corporate allies. Date: 1998 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eurman:v:16:y:1998:i:2:p:136-150 Ordering information: This journal article can be ordered from Access Statistics for this article European Management Journal is currently edited by Michael Haenlein More articles in European Management Journal from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.