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

In recent years, there have been proposed many theories and models, such as transaction cost theory and the resource-based view, 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. This paper proposes a holistic perspective and provides an optimal resource portfolio by using the DeNovo perspective. A numerical example demonstrates the criteria of strategic alliances and provides the optimal resource portfolio.