There was a surprising benefit to these partnerships. Small firms were able to get specific technical information they could use in their businesses. Being in a network helped them get information they wouldn't be able to afford on their own. Smaller firms can act on information quickly because they are not as bureaucratic as big companies, says Nicholson. This gives them a competitive edge.
People make or break alliances.
It has more to do with people and their relationships. Each member also has to have something that the other businesses value, says Chaiton. Everyone has to contribute for group benefit. Everyone has to be up-front with their interests and concerns about the agreement. Make sure the alliance structure suits the needs and objectives of members.