Proactive Legal Involvement in Partner Selection Process

Proceedings of the 9th International Conference on Innovation & Management (2012)

16 Pages Posted: 29 Aug 2014 Last revised: 2 Sep 2014

See all articles by Danielle Twardy Duisters

Danielle Twardy Duisters

Eindhoven University of Technology (TUE)

Peter Kamminga

VU University Amsterdam - Faculty of Law; Harvard Law School (Program on Negotiation); UC Hastings Law

Geert Duysters

Eindhoven University of Technology (TUE) - Eindhoven Center for Innovation Studies (ECIS); University of Maastricht

Date Written: August 27, 2014

Abstract

Using a partner selection process in the start of strategic alliances is not yet general practice. This is regarded as one of the reasons why many strategic alliances fail to be successful. The use of a structured partner selection process could be a way to build one’s alliance capability and create a better fit and higher alliance performance.

In this paper, drawing from quantitative and qualitative research, we argue that alliances are more likely to increase alliance success when the partners pay particular attention to aspects with legal dimension within their partner selection process. Our key argument is that, as inter partner conflicts are the main reasons for alliance failure, by taking a legal perspective and providing adequate governance structure as instruments early on during the partner selection process, may diminish those conflicts and increase alliance success.

Our findings from a quantitative study among alliance professionals suggest that the use of negotiation and standard governance is highly effective in helping firms to increase their alliance success. As our study indicates that including clear steps regarding legal aspects of alliance selection, we further explored the role ‘the law’ (contracts and lawyers) plays and may play in (to optimizing) a successful selection process. We not only show the added value of taking a legal perspective, we also suggest which and when legal elements may be organized in such a way that they support a successful partner selection process.

Keywords: Alliance management; Partner selection process; Legal involvement

JEL Classification: K12

Suggested Citation

Twardy Duisters, Danielle and Kamminga, Peter and Duysters, Geert, Proactive Legal Involvement in Partner Selection Process (August 27, 2014). Proceedings of the 9th International Conference on Innovation & Management (2012), Available at SSRN: https://ssrn.com/abstract=2488195 or http://dx.doi.org/10.2139/ssrn.2488195

Danielle Twardy Duisters

Eindhoven University of Technology (TUE) ( email )

PO Box 513
Eindhoven, 5600 MB
Netherlands

Peter Kamminga (Contact Author)

VU University Amsterdam - Faculty of Law ( email )

De Boelelaan 1105
Amsterdam, 1081 HV
Netherlands

Harvard Law School (Program on Negotiation) ( email )

1575 Massachusetts
Hauser 406
Cambridge, MA 02138
United States

UC Hastings Law ( email )

200 McAllister Street
San Francisco, CA 94102
United States

HOME PAGE: http://www.uchastings.edu/faculty-administration/faculty/kamminga/index.html

Geert Duysters

Eindhoven University of Technology (TUE) - Eindhoven Center for Innovation Studies (ECIS) ( email )

Box 513
NL-5600 MB Eindhoven
Netherlands
+31 40 247 4646 (Fax)

University of Maastricht

P.O. Box 616
Maastricht, 6200MD
Netherlands

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