Alliance dynamics in response to declining environmental munificence: The case of Bluetooth

Abstract

Research into strategic alliances has traditionally focused on motivation and performance. More recently, network dynamics and alliances as complex and evolving arrangements are themes that are emerging as key areas for investigation. Thus far, little research has been undertaken that integrates these emerging themes in the context of the impact of deteriorating exogenous environments on network alliances.The ICT industry provides such a context, with the rapid deterioration of fortunes in the industry as a result of equity market moves since early 2000. This research looks at the Bluetooth consortium, a loosely framed network of firms involved in the development and commercialisation of wireless technical applications for information technology based products. It finds that matters related to intellectual property ownership and inter-firm coordination in complex product development have been problematic, with the deterioration of environmental munificence driving a slowing of network investment and product development success.