When to Forge Alliances?

  • Hubert Gatignon
  • David Gotteland
  • Christophe Haon


The traditional approach to the development of new products and services is to perform research and development (R&D) internally to the firm (Doz and Hamel 1998, Chesbrough 2003). However, in the face of rapid evolution of consumers’ needs as well as the uncertainty of technological change, R&D activities are an area where alliances have been increasingly sought and have even played a dominant role (Shan 1990, Kogut 1991, Hagedoorn and Schakenraad 1994, Raassens, Wuyts and Geyskens 2012). According to Capron and Mitchell (2012), firms choose from among three alternatives, based on the firm’s existing capabilities and partnership characteristics: build, borrow, or buy.1 Indeed, firms do not always have or cannot necessarily acquire the competencies and know-how required for new product development (NPD) (see the discussion on innovation characteristics in Chapter 2). Such competencies may include (Capron and Mitchell 2012):
  1. 1.


  2. 2.


  3. 3.


  4. 4.


  5. 5.

    Broad competencies

  6. 6.

    Other assets



Transaction Cost Entry Mode Strategic Management Journal International Business Study Relational Embeddedness 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Hubert Gatignon, David Gotteland and Christophe Haon 2016

Authors and Affiliations

  • Hubert Gatignon
    • 1
  • David Gotteland
    • 2
  • Christophe Haon
    • 2
  1. 1.INSEADSorbonne UniversitésFrance
  2. 2.Grenoble Ecole de ManagementFrance

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