An international alliance is a formal agreement between states that commits them to work together in some capacity. Alliances can be political, economic or military in nature and are usually organised around a common interest. The existence of an international alliance often has significant implications for the global order, and can be used to deter or, if necessary, defeat an external threat. They can also provide states with economic benefits and clout at the world’s most important negotiating tables.
A major reason for the creation of international alliances is that they provide a means to maintain a balance of power between states. This is a fundamental principle of the international system, and has been evident in Europe since the Middle Ages. Repeated attempts by a single state to establish hegemony in Europe, such as that of King Louis XIV or Napoleon, were thwarted by the formation of alliances against them.
NATO, the largest military alliance in the world, is a prime example of this. It was founded to protect members against the Soviet Union, and was largely successful in doing so. NATO has evolved in the post-Cold War period, and now includes countries from all over the world. It has also taken on missions in places like the Middle East, but its effectiveness is questioned by some who believe it is not pulling its weight in terms of defense spending.
A number of studies have attempted to classify international strategic alliances (ISAs) based on their ambidexterity. For example, Nielsen and Gudergan (2012) have adapted Lavie and Rosenkopf’s (2006) viewpoint by segmenting ISAs into international exploration alliances and international exploitation alliances. The former focus on upstream value-chain activities such as knowledge acquisition and development, while the latter concentrate on downstream activities such as marketing and distribution.