When courtships fail: The antecedents of failure in strategic alliances between startups and incumbents

This study explores the antecedents of alliance failure between incumbents and startups by shedding light on the ex ante conditions that initiated the alliances, the in situ conditions that caused the alliance failures, and the ex post conditions of the outcomes. We conducted a qualitative, multiple case-study analysis of four failed alliances in a northern European context based on interviews with executives from the incumbents, startups, and incubators involved. Our findings indicate that the promise of resource complementarity between incumbents and startups does not warrant the success of strategic alliances. Finally, we explore the implications of our findings and propose how incumbents and startups can collaborate better in future alliances.