Introduction

Alliance networks are recognized by both strategy researchers and practitioners as important drivers of firm performance and network studies have become an integral part of strategic management research in the past decade (Borgatti and Foster, 2003; Brass, et al., 2004; Gulati, 1998; Gulati, Nohria and Zaheer, 2000). Empirical studies generally show a positive relationship between network embeddedness and focal firm performance (Baum, Calabrese and Silverman, 2000; Lee, Ch., Lee and Pennings, 2001; Soda and Zaheer, 2004). Management literature typically conceptualizes inter-organizational relationships as an alternative organizational form (between market and hierarchy) and as an essential means of strategy implementation (Das and Teng, 2000; Hoskisson, Hitt and Wan, 1999). Especially in fast-moving industries, companies draw increasingly on partner resources to accomplish their strategic goals. Entire industries are re-defined as companies decentralize and value-creating activities are carried out by, or together with, alliance partners.