Why harmonious alliance could fail? A case study between Dutch-US alliance

Abstract

This case study provide a critical analysis of a strategic alliance between Avebe (the Netherlands) and Noveon (North America) which was aiming for the joint development of a new high-performance thickener for textile printing application. The most interesting aspect of this alliance is the acknowledgement by both companies of the excellent relationship they enjoyed during the partnership that resulted in a high-quality product in the dye printing market. Ironically, this alliance silenced after four years of its cooperation and both parties do not know why they broke up. This research is using qualitative approach by interviewing managers of both companies who were involved in this alliance. The result of this study indicated that there are many reasons why their alliance collapsed, such as lack of communication and commitment (key persons have moved to different responsibility), lack of success in the market, the dilution of interdependency among both partners, and competition in the market place. It is important to take a note that conflict sometimes is a good sign of a healthy relationship. Lesson learned from this alliance is indeed valuable.