Author(s)

Qiuli Huang ¹

Affiliation(s)

¹ Business School, Central University of Finance and Economics, Haidian District, Beijing, China

Corresponding Author

Qiuli Huang

ABSTRACT

As rapid shifts in technology and market dynamics render traditional business operations inadequate, firms are increasingly turning to collaborative networks as a strategic response to gain a competitive edge. Our analysis reveals a substantial gap in understanding how to tailor these networks to contemporary business environments effectively. Through an extensive review of existing literature and theoretical frameworks, this research focuses on three pivotal aspects of alliance network configurations: node selection, relationship construction, and network structuring. We find that strategic positioning and partner attributes—such as resources, capabilities, and market presence—are critical for effective node selection. Our examination of relationship construction explores the patterns, strengths, and contents of network relationships, emphasizing the significance of proximity types and relationship quality. In network structuring, we assess the implications of network size, the diversity of structural arrangements, and the strategic balance of goals. The paper further addresses the dynamics of competition and cooperation, along with resource matching in the configuration of alliance networks. This multidimensional analysis not only advances theoretical understanding of the complexities within alliance networks but also provides actionable strategies for firms to design and manage these networks more effectively. The findings underscore the necessity of integrating multiple factors to adjust network content and structure, optimizing resources to enhance market competitiveness. Ultimately, this research contributes to the field of strategic management by offering a coherent framework for alliance network configuration that integrates node selection, relational dynamics, and structural design, thus promoting better strategic alignment and enhanced performance in dynamic market conditions.

KEYWORDS

Alliance Network Configuration, Strategic Alliances, Node Selection, Inter-organizational Relationships, Network Structure

CITE THIS PAPER

Qiuli Huang, Strategies for Alliance Network Configuration: Node Selection, Relationship Construction and Structural Design. Industrial Engineering and Innovation Management (2024) Vol. 7: 55-62. DOI: http://dx.doi.org/10.23977/ieim.2024.070209.

REFERENCES

[1] Zhang, B. J., Hu, H. Q. and Zhang, D. H. (2011) The formation and evolution of corporate innovation networks: A social network theory perspective. China Industrial Economics, 4, 10
[2] Lu, R. Y., Zhou, Y., Ding, Y. W., Zhou, D. M. and Feng, X. (2021) Corporate innovation networks: Origin, evolution, and research prospects. Management World, 37(1), 217-233.
[3] Han, W. and Wu, Y. B. (2022) How to enhance corporate performance through alliance portfolio construction. In J. Yang, H. Zhu, and X. Y. Yu (Eds.), Frontiers of Entrepreneurship Research: Issues, Theories, and Methods. Mechanical Industry Press.
[4] Penney, C. R. and Combs, J. G. (2020) A transaction cost perspective of alliance portfolio diversity. Journal of Management Studies, 57(6), 1073-1105.
[5] Wassmer, U. (2010). Alliance portfolios: A review and research agenda. Journal of Management, 36(1), 141-171.
[6] Dyer, J. H., Kale, P. and Singh, H. (2001) Strategic alliances work. MIT Sloan Management Review, 42(4), 37-43.
[7] Lavie, D. (2007) Alliance portfolios and firm performance: a study of value creation and appropriation in the US software industry. Strategic Management Journal, 28(12), 1187-1212.
[8] He, D. and Huo, C. H. (2022) Network orchestration: Connotation characteristics, theoretical framework and future prospects. Foreign Economics & Management, 44(06), 47-62.
[9] Hoffmann, W. H. (2007) Strategies for managing a portfolio of alliances. Strategic Management Journal, 28(8), 827–856.
[10] Koka, B. R. and Prescott, J. E. (2008) Designing alliance networks: the influence of network position, environmental change, and strategy on firm performance. Strategic Management Journal, 29(6), 639-661.
[11] Shi, W., Sun, S. L. and Peng, M. W. (2012) Sub-National Institutional Contingencies, Network Positions, and IJV Partner Selection. Journal of Management Studies, 49(7), 1221–1245.
[12] Wang, L., Shao, Y. H. and Wang, Y. N. (2021) Network structure and bank efficiency: A study based on the time-varying "bank-shareholder" network. Economic Research Journal, 56(12), 60-76.
[13] Li, D. H., Fan, L. B. and Yang, Z. N. (2017) Can enterprise network embedding be worry-free? An examination based on Chinese listed manufacturing companies. Nankai Business Review, 20(01), 67-82.
[14] Uzzi, B. (1997) Social Structure and Competition in Interfirm Networks: The Paradox of Embeddedness. Administrative Science Quarterly, 42(1), 35-67.
[15] Bizzi, L. (2013) The dark side of structural holes: A multilevel investigation. Journal of Management, 39(6), 1554-1578.
[16] Baum, J. A., Cowan, R. and Jonard, N. (2010) Network-independent partner selection and the evolution of innovation networks. Management science, 56(11), 2094-2110.
[17] Ding, R., Dekker, H. C. and Groot, T. (2013) Risk, partner selection and contractual control in interfirm relationships. Management Accounting Research, 24(2), 140-155.
[18] Hao, B., Li, J. L. and Fligangwanshang. (2014) The latest progress in research on inter-firm relationship partner selection. Foreign Economics & Management, 36(01), 55–64.
[19] Lazzeretti, L. and Capone, F. (2016) How Proximity Matters in Innovation Networks Dynamics Along the Cluster Evolution. Journal of Business Research, 69(12), 5855-5865. 
[20] Balland, P.A. (2012) Proximity and the evolution of collaboration networks. Regional Studies, 46(6), 741-756.
[21] Belussi, F., Sedita, S. and Sammarra, A. (2010) Learning at the boundaries in an "Open Regional Innovation System": A focus on firms' innovation strategies in the Emilia Romagna life science industry. Research Policy, 39, 710-721.
[22] Geldes, C., Felzensztein, C., Turkina, E. and Durand, A. (2015) How does proximity affect interfirm marketing cooperation? A study of an agribusiness cluster. Journal of Business Research, 68, 263-272.
[23] Broekel, T. and Boschma, R. (2012) Knowledge networks in the Dutch aviation industry: The proximity paradox. Journal of Economic Geography, 12, 409-433.
[24] Liu, X. Y., Ding, W. J. and Zhao, X. D. (2016) The relationship between relationship strength, absorptive capacity, and innovation performance in corporate innovation networks. Nankai Management Review, 19(01), 30-42.
[25] Frankenberger, K., Weiblen, T. and Gassmann, O. (2013) Network configuration, customer centricity, and performance of open business models: A solution provider perspective. Industrial Marketing Management, 42(5), 671-682.
[26] Guan, J. and Liu, N. (2016) Exploitative and Exploratory Innovations in Knowledge Network and Collaboration Network: A Patent Analysis in the Technological Field of Nano-Energy. Research Policy, 45(1), 97-112.
[27] Zhang, C. and Du, N. (2011) Inter-organizational networks at the network level: A review of empirical literature on whole networks. Management World, 10, 154–167.
[28] Bouncken, R. B. and Fredrich, V. (2016) Learning in coopetition: Alliance orientation, network size, and firm types. Journal of Business Research, 69(5), 1753–1758.
[29] Huang, J. W. (2019) Is the corporate social network always useful? A literature review. Science Research Management, 40(09), 57-64.
[30] Huang, M. X., Yu, Y. H., Yao, J. X. and He, T. (2023) The impact of technological and human network structures on bank performance: A panoramic study based on spatial competition of bank branches. Journal of Management Sciences in China, (05), 174-199.
[31] Zaheer, A., Gözübüyük, R. and Milanov, H. (2010) It's the Connections: The Network Perspective in Interorganizational Research. Academy of Management Perspectives, 24(1), 62–77.
[32] Afuah, A. (2013) Are network effects really all about size? The role of structure and conduct. Strategic Management Journal, 34(3), 257–273.
[33] Hallen, B. L. and Eisenhardt, K. M. (2012) Catalyzing Strategies and Efficient Tie Formation: How Entrepreneurial Firms Obtain Investment Ties. Academy of Management Journal, 55(1), 35–70.
[34] Tasselli, S. and Kilduff, M. (2021) Network Agency. Academy of Management Annals, 15(1), 68–110.
[35] Burt, R. S. (2012) Network-related personality and the agency question: Multirole evidence from a virtual world. American Journal of Sociology, 118, 543-591.
[36] Jiang, R.J., Tao, Q.T. and Santoro. (2010) Alliance portfolio diversity and firm performance. Strategic Management Journal, 31(10), 1136-1144.
[37] Goerzen, A. and Beamish, P. W. (2005) The Effect of Alliance Network Diversity on Multinational Enterprise Performance. Strategic Management Journal, 26(4), 333-354.
[38] Russo, A. and Vurro, C. (2010) Cross‐boundary ambidexterity: Balancing exploration and exploitation in the fuel cell industry. European Management Review, 7(1), 30-45.
[39] Wassmer, U., Li, S. and Madhok, A. (2017) Resource ambidexterity through alliance portfolios and firm performance. Strategic Management Journal, 38(2), 384-394.
[40] Lavie, D., Kang, J. and Rosenkopf, L. (2011) Balance Within and Across Domains: The Performance Implications of Exploration and Exploitation in Alliances. Organization Science, 22.
[41] Kavusan, K. and Frankort, H.T.W. (2019) A behavioral theory of alliance portfolio reconfiguration:evidence from pharmaceutical biotechnology. Strategic Management Journal, 40(10), 1668-1702.
[42] Hoffmann, W. H. (2005) How to Manage a Portfolio of Alliances. Long Range Planning, 38(2), 121–143.
[43] Han, W. and Deng, Y. (2018) A review and prospect of alliance portfolio research: Interaction, dynamics, and impact effects of alliance portfolios. Management Review, 30(10), 169–183.
[44] Yang, Z. B. (2018) Network embeddedness and technological innovation: How indirect ties and alliance diversity affect corporate technological innovation. Science of Science and Management of S. & T., (07), 51-64.
[45] Granovetter, M. S. (1973) The strength of weak ties. American Journal of Sociology, 78(6), 1360-1380.
[46] van Burg, E., Elfring, T. and Cornelissen, J. P. (2022) Connecting content and structure: A review of mechanisms in entrepreneurs' social networks. International Journal of Management Reviews, 24(2), 188–209.
[47] Zou, N. and Storz, C. (2023) Why do some entrepreneurs thrive? A network content perspective. Journal of Business Research, 161, 113821.

Sponsors, Associates, and Links

---

• Information Systems and Economics
  
  
• Accounting, Auditing and Finance
  
  
• Tourism Management and Technology Economy
  
  
• Journal of Computational and Financial Econometrics
  
  
• Financial Engineering and Risk Management
  
  
• Accounting and Corporate Management
  
  
• Social Security and Administration Management
  
  
• Population, Resources & Environmental Economics
  
  
• Statistics & Quantitative Economics
  
  
• Agricultural & Forestry Economics and Management
  
  
• Social Medicine and Health Management
  
  
• Land Resource Management
  
  
• Information, Library and Archival Science
  
  
• Journal of Human Resource Development
  
  
• Manufacturing and Service Operations Management
  
  
• Operational Research and Cybernetics