The 17 PROPAT Characteristics
- A willingness to change and take risks
- Acceptance of interdependence
- Trust
- Seeking absolute not relative advantage
- Long-term Commitment
- Capacity to learn
- Communication
- Coordination
- Flexibility
- Objective self assessment
- Active membership in social networks
- Awareness about alliances
- Ability to resolve conflict
- Patience
- People before structure
- Loyalty to existing members
- Thrift
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Types of strategic alliances
Learn about business alliances and the options available before you form the alliance
Murto-Koivisto and Vesalainen (1996), in their study of prerequisites for successful cooperation in the SME sector, found that awareness about alliances, particularly knowledge of the various possible forms of alliance available, is in itself a factor affecting the chances of success of the alliance.
The authors suggest that partners should be aware of the different forms of cooperation available to them so that they can choose an alliance form that best supports their strategic objectives. They must be aware that each type of alliance (e.g. development circle, loose cooperative circle, project group, joint venture, joint unit etc.) has different outcomes and different prerequisites for success.
Partners can only make an informed decision about forming an alliance and the form which this should take if they are aware of the various alternatives and varying conditions attached to each of them.
Hoffman and Schlosser (2001) point out that SME's renowned reluctance to collaborate may be due not only to cultural and emotional barriers but also to a lack of knowledge about the specific success factors of alliances.