The critical choice of strategic business partners

The strategic challenge for top managers in all companies is to make wise decisions among the fundamental options of make, buy or ally. In other words, they must decide which of the necessary resources and capabilities should be created and maintained in-house (make), acquired as necessary on the open market (buy), or co-developed and accessed through special external relationships (ally).

This is even more relevant to new ventures in Asia, which need to pick from a wide array of potential partners.

Each of the make/buy/ally options has different advantages and disadvantages. In the case of high-growth ventures in which financial and management resources (such as time and expertise) are scarce, an entrepreneur's choices entail important trade-offs.

On the one hand, he or she must have a set of resources and capabilities in-house that are critical parts of the business. Usually these represent the entrepreneur's and the high-growth venture's proprietary resources and capabilities.

On the other hand, few high-growth ventures have the capacity to develop internally or to buy externally all the other critical resources and capabilities for building and sustaining a business.

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