This study examines the use of strate- gic alliances by small technology-based firms. These firms, who have innovative ideas and products but often lack the resources and experience to full capital- ize on them in a timely fashion, are ideal candidates for alliance arrangements. It is argued, however, that firms who rely on alliances, as opposed to those who choose them as one option among sever- al alternatives may put themselves in a dependent position from which they can- not full capture their share of the gains from alliance relationships.
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