Motivation and resource-allocation for strategic alliances through the DeNovo perspective

In recent years, there are many theories and models such as transaction cost theory and the resource-based view have been proposed to explain the formation of strategic alliances. However, the perspectives are usually limited and incomplete. Additionally, the problem of resource allocation is also a serious issue when firms enter strategic alliances. The paper, here, proposes a holistic perspective and provides an optimal resource portfolio by using the De Novo perspective. A numerical example demonstrates the criteria of strategic alliances and provides the optimal resource portfolio. Key words-Strategic alliances, transaction cost theory, resource-based view, resource allocation, De Novo perspective.