From "me against you" to "us against them": alliance formation based on inter-alliance rivalry

This article investigates and integrates the concepts of alliance competition and inter-alliance rivalry. While past research has focused primarily on intra-alliance dynamics such as why, when, and with whom alliances are formed, the outcome of such agreements is unclear. This paper focuses on inter-alliance dynamics that involve conceptualizing group-versus-group or alliance competition and inter-alliance rivalry by studying the competitive engagements of firms through alliances. We develop a model that includes a set of market and firm-specific variables that can explain alliance competitive engagement.