The Influence of Resource Dependency Tolerance on Inter-organisational Alliance Governance

The potential of inter-organisational alliances is well recognised but not always realised. An appropriate governance structure has been identified as an important contributor to success. However governance research has typically not examined influences on the coverage of an alliance and how they are reflected in the governance structure put in place. Based on resource dependency theory it is suggested that organisations have a resource dependency tolerance level and that this will manifest itself in the scope and depth of an alliance. Given the extent of any dependency is determined by a combination of the importance of a resource, the degree of control by another and the availability of alternatives these factors are key considerations when organisations are constructing an alliance governance structure. An exploratory case study of a local government alliance in Australia is presented to illustrate the proposed connection between resource dependency tolerance and alliance governance structure. The case also highlights that not all participants in an alliance will necessarily have the same resource dependency tolerance level and that this can make it difficult to agree upon the coverage of an alliance and its associated governance structure.