Abstract
Alliances are becoming an increasingly common strategy for product development despite the intrinsic tension between alliance logic and innovation logic. This paper investigates the development of alliance structures during the exploration phase of the innovation process. Based on a study of five service development alliances in the telecom industry, three patterns are identified by which the alliance structure and the innovation are brought into alignment. Such alignment seems to be a necessary condition for the transition into commercialization. The patterns identified are: (1) Learning about the innovation may trigger changes in the alliance structure; (2) Learning about the innovation may suggest changes in the alliance structure that are impossible to implement, however, thus triggering changes in the innovation; (3) Planning the future alliance structure may suggest changes in the innovation. Based on these patterns, some conclusions and implications are identified, for both theory and practice.