Survival of the Fittest or Survival of the Group? Co- Evolutionary Dynamics in Strategic Alliances

This study examines the theories of evolution and co-evolution within the context of two industries at different stages of the industry life cycle. It examines some of the essential underlying assumptions of these theories including the unit of change, the unit of selection, and the outcome of these. These issues are explored and developed through the use of a qualitative case study approach using empirical evidence from SME’s in the UK and Australia. Findings are that there seem to be multiple simultaneous units of change, and of selection at these stages of the industry life cycle. Therefore neither evolution, nor co-evolution is sufficient in explaining this change, although co-evolution appeared to provide a better explanation for the intense formation of strategic alliances in both of these industries.