Collaboration Between Technology Entrepreneurs and Large Corporations: Key Design and Management Issue

The 1990's witnessed an explosive growth in strategic alliance activity. Today, strategic alliances are a central element in the growth strategies of technology entrepreneurs and emerging technology companies. In many instances, these alliances involve a large corporate partner. This phenomenon has been accelerated by the explosion in corporate venturing activity in recent years. On a conceptual level, alliances between small entrepreneurial firms and large corporations can provide significant benefits to both parties. A small technology company can leverage the research, manufacturing, marketing and financial resources of the large partner while the latter can tap into the innovative capacity of the smaller partner. On a practical level, however these alliances pose some significant design and management challenges. This article examines these challenges and outlines actions that the technology entrepreneur can take to respond to them.