Abstract

The number of strategic alliances formed between organizations has increased dramatically and are projected to continue increasing over the next few years. Behavioral and cultural factors play a major role in the success (or failure) of a strategic alliance between partners, but many managers pay little attention to this aspect while in the process of negotiations. This paper highlights a number of human and organizational culture issues, which played a major role in the process of developing a strategic alliance between a major telecommunications organization and several retail electricity organizations. A framework for strategic alliance was developed for this new market situation, which helped the organizations involved understand the future informational requirements and dependence of the partners on one another.