Large-scale strategic change projects in companies may be supported by using alliance networks. This paper shows that IBM’s change from an exploitation strategy towards an exploration strategy required a radically different network strategy as well. By entering into more non-equity alliances, involving new partners in the network and loosening the ties with existing partners, IBM supported its transformation from a hardware manufacturing company to a global service provider and software company.

IBM, Networks, exploration/exploitation, innovation, strategic change
Firm Organization and Market Structure: Markets vs. Hierarchies; Vertical Integration; Conglomerates (jel L22), Business Administration and Business Economics; Marketing; Accounting (jel M), New Firms; Startups (jel M13), Management of Technological Innovation and R&D (jel O32)
hdl.handle.net/1765/1836
ERIM Report Series Research in Management
ERIM report series research in management Erasmus Research Institute of Management
Erasmus Research Institute of Management

Dittrich, K, Duysters, G.M, & de Man, A-P. (2004). Using Networks For Changing Innovation Strategy: The Case of IBM (No. ERS-2004-111-ORG). ERIM report series research in management Erasmus Research Institute of Management. Retrieved from http://hdl.handle.net/1765/1836