Flexibility and the alliance partner

Flexibility is crucial in successful business alliances

Flexibility is crucial in inter-firm cooperation since successful alliances cannot be assured by formal systems, policies and procedures (Kanter 1994). Kanter posits that strategic alliances require “a dense web of interpersonal connections and internal infrastructures that enhance learning". The author further maintains that successful alliances must yield benefits for both partners but they are "more than just a deal". According to Kanter, alliances are living systems that evolve progressively in their possibilities, opening new doors and providing unforeseen opportunities.

On the same vein Bleeke and Ernst (1991) argue that alliances must be allowed to evolve beyond initial expectations and objectives. This requires autonomy for the venture and flexibility on the part of the partners. Flexibility allows alliances to overcome problems and adapt to changes over time. In their research the authors reported that some 67% of alliances ran into trouble in the first two years and revealed that those that had the flexibility to evolve were better able to recover.

A similar view is expressed by Hamel et. al. (1989) who stress that ownership structure is less important than the rate at which each partner learns from the other. They maintain that some ambiguity may indeed be desirable as it creates more potential to acquire skills and technology.

SMEs are renowned for their flexibility and adaptability in the conduct of their business (Levy and Powell 2004) and flexibility should not therefore present an obstacle for owner-managers contemplating the alliance decision.