Strategic Alliances as Hybrid Forms. Analysts widely recognize that alliances are hybrid
organizational forms or hybrid arrangements between firms that blend hierarchical and market
elements (Auster 1994; Olk 1999). They encompass both short-term project-based, and longterm
equity-based, cooperation between firms with varying degrees of vertical integration and
interdependence. Whenever legal or economic constraints prevent a firm from using hierarchy
or full ownership as a solution, it may opt to enter into an alliance to counteract certain market
forces that threaten its well-being (Anderson and Gatignon 1986; Hennart 1991). To a some
extent, alliances combine the assets and capabilities with the uncertainties and liabilities of all
partners.