This article studies how market redefinition strategies can contribute to the balancing of bargaining power in alliances. Relying on resource dependence theory, we study the causes of disproportionate power in alliance and describe various balancing operations that can be implemented to reduce dependence. In previous contributions, the existence of alternative sources for these resources was given exogenously, such that the set of balancing operations was rather limited. Implementing a multiple case study on air-rail intermodal strategies, we observe firms pro-actively redesigning their market boundaries in order to look for new substitutes. These market redefinition strategies reduce the dependence upon the powerful partner and offer new strategic options in terms of partnership for the focal firm. From a theoretical standpoint, we extend the classical view of resource dependence and power in alliances in which components of dependence were given exogenously. By giving the opportunity for the focal firm to pro-actively shift its market boundaries, our new approach increases the number of options available. With this contribution, we pose that firms can activate several parameters (share in goals, number and quality of substitutes, etc.) in order to reduce their dependence upon a powerful partner and escape from deterministic patterns in the alliances they sign. We conclude by drawing some managerial implications concerning the role of market redefinition strategies in alliance development.
