Alliances and Joint Ventures

Tina Dacin, Douglas Reid and Peter Smith Ring

in The Oxford Handbook of Inter-Organizational Relations

Published in print June 2008 | ISBN: 9780199282944
Published online September 2009 | | DOI:

Series: Oxford Handbooks in Business and Management C

 Alliances and Joint Ventures

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  • Business and Management
  • Business Strategy
  • Organizational Theory and Behaviour


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This article defines collaborations between firms that involve the creation of a separate, autonomous, and legally recognized firm — a ‘newco’ — as a joint venture. Joint ventures usually, but not always, involve parties who have contributed equity in creating the ‘newco’, so the term joint venture in this article refers to equity joint ventures. Joint ventures typically involve collaborations between two parties, but there can be more. This article defines an alliance as a cooperative agreement between at least two firms. These firms combine their resources and capabilities in the pursuit of collective and individual strategic objectives. This article begins with a discussion of the frequency with which firms rely on joint ventures and alliances and the motivations that lead economic actors to develop joint ventures and/or alliances. It provides a detailed discussion of the theory underlying partner selection in joint ventures and alliances.

Keywords: newco; joint venture; equity; alliance; economic actors

Article.  11882 words. 

Subjects: Business and Management ; Business Strategy ; Organizational Theory and Behaviour

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