This study investigates the relationship between internal resource allocation and external alliance activity in diversified firms. The aim is to understand the interactions between these two strategic processes and their implications for firm performance and competitive advantage. Drawing on resource-based theory and alliance literature, we propose that internal resource allocation decisions significantly influence the extent and nature of external alliance formation and engagement. Furthermore, we explore how the alignment between internal resource allocation and external alliance activity affects firm outcomes. Through a comprehensive review of relevant literature and empirical analysis of a sample of diversified firms, we provide insights into the complex dynamics and strategic implications of resource allocation and alliance strategies in diversified firms. The findings contribute to both theory and practice by shedding light on the interconnectedness of internal and external strategic decisions in achieving competitive advantage.

Internal resource allocation, external alliance activity, diversified firms

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