Looking for alliance portfolio characteristics: the case of telecom industry

In the last two decades firms are called to increase their performance by managing hundreds of alliances per time. Consequently, alliance scholars have started to adopt a portfolio perspective to investigate how companies might increment their performance. Despite a consistent number of studies has developed on this direction, in the alliance portfolio literature it is not easy to distinguish the drivers that guide firms to outcompete their rivals. This chapter aims to address this research question by examining the impact that characteristics of alliance portfolio might have on firm performance. Specifically, I approach this issue by identifying three alliance portfolio characteristics in the extant literature that influence firm performance; i.e., alliance portfolio size, alliance portfolio diversity, and alliance portfolio internationalization. Then, drawing on alliance data in the telecom industry, I look at evidence of these alliance portfolio characteristics in three key industry players: Alcatel-Lucent, Ericsson, and Nokia. I conclude the study by discussing theoretical and managerial implications and suggesting future research avenues on this line of inquiry.