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Strategic repositioning by means of alliance networks: The case of IBM |
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| Authors: | Koen Dittrich Geert Duysters Ard-Pieter de Man |
| Institution: | a RSM Erasmus University, Department of Management of Technology and Innovation, PO Box 1738, 3000 DR Rotterdam, The Netherlands b UNU-MERIT, Keizer Karelplein 19, 6211 TC Maastricht, The Netherlands c Eindhoven Centre for Innovation Studies (ECIS), PO Box 513, 5600 MB Eindhoven, The Netherlands d Free University Amsterdam, Faculty of Economics and Business, De Boelelaan 1105, 1081 HV Amsterdam, The Netherlands e Atos Consulting, Building C, Papendorpseweg 93, 3528 BJ Utrecht, The Netherlands |
| Abstract: | This paper aims to show that alliance networks can play an important role in facilitating large-scale strategic change projects. It focuses on the particular case of IBM, whose radical redirection from an exploitation strategy towards an exploration strategy was realized by major changes in its network strategy. We show that by involving new partners in the network and by loosening the ties with its existing partners, IBM managed to transform from a hardware manufacturing company to a global service provider and software company. The findings suggest that the traditional view of large firms as being slow to adapt may not be valid because alliance networks can be used to overcome inertia. |
| Keywords: | Alliance networks Strategic change Exploration/exploitation IBM |
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