What Is a Strategic Partnership Agreement?

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  • Written By: Jan Fletcher
  • Edited By: Jessica Seminara
  • Last Modified Date: 23 August 2019
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A strategic partnership agreement is a contract arrangement between two businesses or organizations to work together for one another's mutual benefit. These contracts usually do not involve the creation of a full partnership, or a merger of two companies. It is typically an arrangement that allows for cooperation among various business or governmental entities without affecting the organizational integrity of each partner. A strategic partnership agreement may be formed to solve a specific business or social challenge. Sometimes such agreements refer to less formal, and more collegial efforts to solve problems encountered by organizations or businesses.

Strategic alliances are relatively common in industry, and also occur between government agencies. In most cases, a strategic partnership agreement is forged in order to allow each partner the freedom to bring in various players to accomplish set tasks, while still preserving the autonomy of each participant. The ability to tackle business or community problems collaboratively is often aided by a formal agreement that allows strategic placement of manpower and equipment toward the problem.

Mobilizing combined areas of expertise and capacity is a common reason for entering into a strategic partnership agreement. For example, a software manufacturer might form a strategic alliance with laptop computer manufacturer for the purpose of joint promotions that benefit both partners. Both may have a strong shared interest in a similar market niche, but each may apply their respective talents or capacities to the challenge at hand.


Such a partnership allows for cooperative endeavors, while preserving the existing organizational structure of the partners. Although property or human resources involved in the collaboration may be addressed in a strategic partnership agreement, the partners would likely not change their respective legal structures. Instead, each partner's autonomy would be preserved, while still allowing for productive cooperation.

This form of partnership may be formalized through a binding contract. If so, this is usually done to ensure compliance with legal and ethical standards. Another reason for formalizing the contract is to allow for property rights to be spelled out in an agreement, or to ensure legal protections, such as providing each partner liability protection.

Collaborative agreements may also occur at an informal level. The partners to the agreement may come together for the purpose of developing a strategic response to various social or community concerns. Local, regional, or national collaborations may occur among social service organizations or charities. The mission of each partner may be spelled out in a non-binding form. Sometimes these types of collaborations are formed to encourage the sharing of information between agencies or governments.


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