Strategic repositioning by means of alliance networks: The case of IBM

Abstract

This paper aims to show that alliance networks can play an important role in facilitating large-scale strategic change projects. It focuses on the particular case of IBM, whose radical redirection from an exploitation strategy towards an exploration strategy was realized by major changes in its network strategy. We show that by involving new partners in the network and by loosening the ties with its existing partners, IBM managed to transform from a hardware manufacturing company to a global service provider and software company. The findings suggest that the traditional view of large firms as being slow to adapt may not be valid because alliance networks can be used to overcome inertia.