Learning alliances have become an increasingly important strategic
option for firms to achieve competitive advantage. Yet most
alliances fail and are terminated early without their obtaining the
desired common goals. Or, partners learn privately for areas
unrelated to the alliance - an undesirable alliance outcome. How
can managers successfully manage common learning and increase
awareness for partners learning privately? Based on theoretical
findings and supported by a case study the author designs a
simulation model considering competitive and cooperative policies
to analyze the dynamics of learning alliances. With this model the
author identifies a tipping point that determines the success or
failure of an alliance. Simulation runs lead to a series of
important managerial findings for policy-designers and
decision-makers.
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