A study into the alliance capability development process

In order to understand differences in alliance performance and rent generation between firms, we conceptually investigate the capability development process. Given the increasing importance of alliances as a revenue generator and the concomitant need for firms to optimize their alliance performance, this study uses experience, micro-level mechanisms, routines and capabilities as key ingredients of the capability development process. Building on an extensive literature review, a model is introduced which represents the alliance capability development process. From this model, three propositions are derived which relate to the role of experience and capabilities (consisting of micro-level mechanisms and routines) in alliance performance. In doing so, we hope to contribute to the understanding of the process underlying the development of an alliance capability.