This paper has a threefold purpose. First, we offer a literature review on alliance capability based on strategic and competence based management literature. Second, we extend existing literature on alliance capability by breaking this concept down into five sub capabilities, which are each linked to a stage of the alliance life cycle. Finally, we suggest how firms can support these capabilities through structural, technological and people-related tools and techniques. We argue that current literature has focused mainly on organization-wide characteristics, the general alliance function and alliance experience to explain the level of alliance capability. Although we acknowledge the importance of these elements, we stress that more attention needs to be given to the various stage-specific components, tasks and supportive mechanisms that can lead to improved alliance capability.
