LAUSR

Strategic alliances offer significant opportunities to organisations, including the ability to expand their capabilities and to optimize value. In exploring the question of whether firms with differing value expectations choose to enter strategic alliances with firms of different capabilities, this study adopts a qualitative research approach using five Business to Business (B2B) manufacturing small and medium enterprises (SMEs). This study focuses on improving our understanding of three related questions, first, whether or not they aim to capture or create value from the alliance; second, what is the nature of their capabilities and third, what is the inter-relationship between value and capabilities in SME alliance formation. A qualitative research approach enabled in-depth investigation and facilitated the emergence of relevant themes; customer orientation and resource optimisation. The insights derived from the study should help SMEs in partner selection and alignment thereby increasing chances of alliance success and longevity, and in turn SME sustainability and survival.