Journal of Strategic Management Studies

Journal of Strategic Management Studies

Interpretive structural modeling of factors affecting strategic alliance success

Document Type : Research

Authors
Fatemeh Zare 1
Ebrahim Rajabpour 2
1 M.A graduated, Department of Business management, Persian Gulf University, Bushehr, Iran
2 Associate Professor, Department of Business management, Persian Gulf University, Bushehr, Iran
10.22034/smsj.2025.522666.2151
Abstract
Introduction: This study investigates a well-established stream of research in strategic management that examines firm boundaries. It demonstrates how companies can transcend these boundaries through strategic alliances to access critical resources and knowledge. Strategic alliances are defined as voluntary collaborations between firms to develop technologies, services, or products, allowing cooperation without significant equity investment. These alliances are important sources of competitive advantage, as they expand firms' resources and knowledge bases, facilitating innovation and inter-organizational learning. Despite their significance, reported failure rates of strategic alliances range from 30% to 70%, underscoring the importance of identifying key success factors. Potential causes of failure include unforeseen events, cultural differences, challenges in knowledge transfer, structural instability, and managerial issues. This study has both theoretical and practical significance by identifying success factors specific to Iran's oil, gas, and petrochemical industries, thereby contributing to improved performance, cost efficiency, and enhanced competitiveness. Given the increasing prevalence of strategic collaborations and the concomitant high failure rates, understanding these factors is essential for the success of strategic alliances in this sector.
Methodology: The study employs an applied, descriptive-survey approach to identify and model the factors influencing the success of strategic alliances in Iran's oil, gas, and petrochemical industries. First, an extensive literature review was conducted to compile a comprehensive list of potential success factors for strategic alliances, particularly within the context of the targeted industry. These factors were then refined through consultation with an expert panel composed of university professors and senior managers, each possessing substantial experience (5–10 years) in the oil, gas, and petrochemical sectors. A purposive sampling method ensured that participants had the highest level of expertise and familiarity with the subject. Ultimately, 16 experts participated in the study.
A bespoke questionnaire, based on the finalized set of factors, served as the primary data collection instrument. Its content validity was established through expert review, and its reliability was confirmed by calculating Cohen’s Kappa coefficient, which yielded a value of 0.72, indicating satisfactory reliability.
For data analysis, Interpretive Structural Modeling (ISM) was utilized. ISM is a structured methodology for identifying and summarizing relationships among variables to develop a multilevel hierarchical model. The process began with the creation of a Structural Self-Interaction Matrix (SSIM), wherein participants specified pairwise relationships among the identified factors using predefined symbols (V, A, X, O) to indicate direction and influence. The SSIM was then transformed into an initial reachability matrix and subsequently refined into a final reachability matrix to ensure logical consistency and transitivity of relationships. The driving power and dependence of each factor were computed, and factors were classified accordingly using MICMAC analysis. This systematic approach enabled the identification of key driving and dependent factors, providing a robust framework for understanding the dynamics of strategic alliance success in the studied industry.
Results and Discussion: The findings revealed nine critical factors that significantly impact the success of strategic alliances in the oil, gas, and petrochemical industries. These factors include resource sharing, partner coordination, effective communication, trust-building, cultural compatibility, collaboration, conflict resolution mechanisms, mutual commitment, and appropriate partner selection. Through ISM analysis, a multilevel hierarchical model was developed to illustrate the direct and indirect relationships among these factors. The results indicated that factors such as partner selection and cultural compatibility occupy foundational positions in the hierarchy, serving as prerequisites for the development of trust and effective collaboration. Mutual commitment and conflict resolution mechanisms were identified as essential for sustaining alliances, whereas resource sharing and effective communication were found to enhance operational efficiency and drive innovation. The MICMAC analysis further categorized the factors based on their driving and dependence powers, highlighting the pivotal role of foundational factors in shaping overall alliance success. These insights underscore the importance of adopting a holistic and strategic approach to alliance management, where attention to both structural and relational dimensions are crucial.
Conclusion: This study offers a comprehensive framework for understanding the key determinants of strategic alliance success within Iran's oil, gas, and petrochemical sectors. By applying ISM and MICMAC methodologies, the study not only identifies the most influential factors but also elucidates their interrelationships and hierarchical significance. The findings provide practical guidance for managers and decision-makers, emphasizing the importance of careful partner selection, fostering cultural compatibility, and establishing robust mechanisms to build trust, ensure commitment, and resolve conflicts. Implementing these strategies can lead to improved operational performance, enhanced innovation, and greater competitive advantage for companies engaged in strategic alliances. Ultimately, the study highlights the necessity of adopting an integrated management approach to ensure the sustainability and effectiveness of strategic collaborations in such complex and dynamic industrial environments.
Keywords
Strategic Alliance
Interpretive Structural Modeling (ISM)
Alliance success
Strategic Cooperation
Oil Gas and Petrochemical Industry
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Journal of Strategic Management Studies
Volume 17, Issue 65
Winter 2026
Pages 97-116

  • Receive Date 11 May 2025
  • Revise Date 16 July 2025
  • Accept Date 30 October 2025