International alliance refers to the agreement between a group of states to form an international organization, which is governed by treaties. This agreement usually includes a mutual defense clause, where members pledge to assist each other in the event of a threat. This arrangement is usually based on common interests, such as national security or economic prosperity. This agreement can be multilateral or bilateral.
The most well-known explanation for the formation of alliances is the aggregation of power model. This theory argues that states pursue alliances for the purpose of strengthening their effective military capabilities through combination with others. This is why countries with similar military power, resources and security interests ally together. Domestic factors, such as political stability or internal conflicts, do not play a significant role in alliance decisions.
A minority of scholars offer alternative explanations for the formation of alliances. One theory is based on the concept of an international ‘narrative’, which views alliances as part of a political narrative defining the prevailing world order. Another approach, rooted in realism, sees alliances as tools for constraining the behavior of states. Finally, a few studies have explored the influence of social, cultural and political similarities on alliance formation. Moreover, recent research has examined the impact of a firm’s networks on its ability to expand internationally. The study finds that firms’ decision to either cooperate or compete for new markets is moderated by network centrality, resource ownership and market attractiveness.