Alliance formation theories

Alliance formation theories examine why organizations group together, forming partnerships or coalitions. They suggest that entities do so to gain competitive advantages like shared resources, access to new markets, or increased influence. Factors influencing alliances include strategic fit, mutual benefits, trust, and the desire to reduce risks or costs. These theories help explain how and why organizations decide to collaborate, maintain flexibility, and sometimes dissolve partnerships when goals change. Essentially, alliances are strategic tools used by organizations to strengthen their position in a complex, competitive environment.