Strategic alliances: a hospitality industry perspective

The article focuses on strategic alliance theory as it applies to the hospitality industry. Citing research as well as real-world examples, the authors integrate a variety of concepts and develop four propositions about the growing use of strategic alliances in the hospitality industry. These propositions include the following: P1: Hospitality alliances will evolve from equity joint ventures to collaborative joint ventures (non-equity) as competitor alliances will emerge. P2: Contractual agreements will evolve from simple franchise and management contracts to more complex resource-sharing, non-equity agreements. P3: Complex resource sharing between allying partners will help incumbent firms build relationships with partner firms that will lead to the development of competitor alliances. P4: Technology will help in the development of competitor alliances, which will also help to increase incumbent firms’ productivity and profitability.