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Book part
Publication date: 20 June 2005

J. Rajendran Pandian and Peter McKiernan

The concept of core competence underlies competence-based competition and competence-based management. When new firms get established, due to resource constraints…

Abstract

The concept of core competence underlies competence-based competition and competence-based management. When new firms get established, due to resource constraints, managers have to make conscious decisions to develop certain competencies and not others. In order to have all competencies that are required to be successful, firms look for strategic alliances and to leverage their partner firms’ competencies. In this paper, we develop a contingency model for firms that have to go for strategic alliances to explain which core competencies should be developed internally, which core competencies could be from the alliance partner, which type of alliance will be suitable and whether the firm should choose a short-term, long-term or permanent alliance. Using Hamel’s (1994) generic core competencies and the type of market (industrial or individual), we suggest which type of strategic alliance should be chosen for leveraging a partner’s competencies.

Details

Competence Perspectives on Managing Interfirm Interactions
Type: Book
ISBN: 978-0-76231-169-9

Article
Publication date: 24 November 2022

Arne Nygaard and Robert Dahlstrom

The purpose of this study is to examine role stress over the course of an alliance between supply chains. This study examines ambiguity as antecedent to multiple…

Abstract

Purpose

The purpose of this study is to examine role stress over the course of an alliance between supply chains. This study examines ambiguity as antecedent to multiple organisational outcomes.

Design/methodology/approach

This study subsequently uses a time series design that uses a close replication of the authors’ initial study. The design affords the opportunity to examine the dynamics associated with the evolution of the alliance.

Findings

This study recognises that the relationships developed by collaborating firms are enacted by downstream entrepreneurs in the supply chain, yet this observation is rarely incorporated into interfirm research. The authors illustrate that the alliances have a significant downstream influence on operations at the retail level.

Research limitations/implications

This longitudinal research has the potential to reduce common method variance and enhance causal inference. The second limitation concerns the simultaneous collection of the predictor and criterion variables. The third limitation is the use of single informants as the primary vehicle for the analysis of the theoretical model when prior research indicates that multiple informants offer enhanced reliability and validity.

Practical implications

The findings contribute to the management theory of business entrepreneurship and strategic alliances and research on supply chains.

Originality/value

This study underscores the need to examine alliances via time series. Research that attempts to generalise from data collected at a single point in time is unlikely to be able to capture the dynamics associated with the development of a joint venture and offers limited opportunity to make inferences about the causal order of relationships. The model based on longitudinal data reveals that the stage of an alliance influences the level of vertical control and ambiguity and the effect of control on role ambiguity.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 17 November 2022

Abdul Waheed, Saad Shafiq and Bilal Mirza

Industry and academia are interested to understand how companies develop alliance capabilities through managing the knowledge, for alliance success. This study aims to…

Abstract

Purpose

Industry and academia are interested to understand how companies develop alliance capabilities through managing the knowledge, for alliance success. This study aims to investigate how alliance learning process is related to the overall success of any alliance, and how openness culture moderates the relationship of alliance learning process and alliance success.

Design/methodology/approach

English language questionnaires were sent to top executives of 400 companies because English is a commonly understood language at managerial level in Pakistani companies. In total, 186 usable answers were received. Hierarchical linear regression was used for hypothesis testing.

Findings

Alliance learning is significantly and positively related to alliance success. Openness plays a role as moderator between the relationship of alliance learning process and alliance success. Contrary to the literature, at low level of alliance learning, high level of openness increases the chances of alliance but as we move toward high level of alliance leaning, low level of openness is more effective to achieve the alliance success.

Research limitations/implications

The data in this study was collected from Pakistan. The results may not be generalized to other regions, especially to developed countries.

Practical implications

The results have implications for managers involved in alliances. They can be benefitted by this study to understand the role of alliance (knowledge) learning process on alliance success and contingent role of openness on this relationship.

Originality/value

This study is an important contribution to understand the notion of organizational learning and knowledge management in alliance context. To the best of the authors’ knowledge, this is the first study to investigate openness as a moderator of the relationship between alliance learning process and alliance success.

Details

Journal of Asia Business Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1558-7894

Keywords

Article
Publication date: 31 August 2012

Rajesh Kumar and Anoop Nathwani

Alliances are unstable and while a number of explanations have been offered for understanding instability a motivational oriented approach remains underdeveloped. This

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Abstract

Purpose

Alliances are unstable and while a number of explanations have been offered for understanding instability a motivational oriented approach remains underdeveloped. This paper seeks to provide a motivational oriented explanation for understanding alliance instability. Firms may enter into an alliance either with a promotion or a prevention mind set and this can be consequential for alliance development.

Design/methodology/approach

The authors draw upon regulatory focus theory and its applications in an alliancing context to derive implications for alliance management. Regulatory focus theory is now increasingly being used to explain various types of organizational phenomenon (e.g. contracting, leadership, alliances). The paper distinguishes between a promotion oriented and a prevention oriented mind set and explores the impact of the different mind sets at the alliance formation, operation, and the outcome stage.

Findings

A key finding is that different mind sets (promotion vs prevention) affect alliance formation, operation, and outcome. At the formation stage the mind sets may determine the success or failure of negotiations; at the operational stage they may determine if conflicts escalate or deescalate; while at the outcome stage they may determine whether the partners continue with or seek to exit from the alliance.

Practical implications

The different motivational orientations have implications for alliance negotiations, the management of the alliance during the operational phase, and/or the decisions that are made by alliancing firms at the outcome phase of the alliance. The paper develops implications for how alliances should be managed for attaining success.

Originality/value

The paper should be of interest to alliance managers as it will give them a new lens for understanding the drivers of alliance success and failure. The impact of motivation on alliance success and failure has not been studied to date and this paper provides a novel approach to assessing its impact.

Article
Publication date: 1 March 2003

Somnath Das, Pradyot K. Sen and Sanjit Sengupta

Considers two forms of strategic alliances, technological and marketing, and examines how these alliances foster formation and maintenance of intellectual capital…

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Abstract

Considers two forms of strategic alliances, technological and marketing, and examines how these alliances foster formation and maintenance of intellectual capital. Empirical evidence suggests that on average, strategic alliances do create value for shareholders that is consistent with the creation of intellectual capital. Between the two, technological alliances are potentially more beneficial than marketing alliances, and more likely to create intellectual capital. Empirical evidence is consistent with the notion that the gains from alliances are not shared equally by all the partners. When intellectual capital is created by the smaller or financially weaker partner, the return may be appropriately captured by the owner of such capital through strategic alliances. However, if the intellectual capital is created by the larger or financially stronger firm which moves first in an alliance relationship, the return on this intellectual capital may be subject to opportunistic exploitation by the late moving partner.

Details

Journal of Intellectual Capital, vol. 4 no. 1
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 12 October 2015

Rosemary Muange and Loice C. Maru

The purpose of this paper is to determine the effect of strategic alliances on firm performance and the moderating effect of firm size in retail firms in Nairobi County in…

Abstract

Purpose

The purpose of this paper is to determine the effect of strategic alliances on firm performance and the moderating effect of firm size in retail firms in Nairobi County in Kenya.

Design/methodology/approach

Resource Dependency Theory was used to guide the study. The study adopted explanatory research design. Questionnaires were used to collect data from sample of 216 respondents through stratified and simple random sampling technique. The study used inferential statistics to test hypotheses.

Findings

Study findings indicated that joint marketing alliances, procurement-supplier alliances, joint manufacturing alliances and technology development alliances have significant and positive effect on firm performance. Based on the findings, creating a joint marketing, procurement-supplier, joint manufacturing and technology development alliances mostly enhance firm performance.

Research limitations/implications

The study considered only one county out of 47, although this county hosts the capital city, where most of the firms considered are located. It therefore is representative of all counties and firms considered in this study. It also considered top management staff and thus may have an effect since the lower cadre staff were not considered. However, most of the required information was expected from top management since these are the ones who make decisions, and hence most affected by strategic alliances.

Practical implications

This study has practical implication on firm performance because it has established that strategic alliance improves on overall firm performance. This manifests itself in terms of improve productivity, production efficiency and profitability. It also helps in the availability of products to the end users.

Social implications

Through improved productivity, efficiency and profitability, this translates to improved terms of payment of staff and hence improved quality of lives of their families and communities within which they live. It also enables the firms to participate more in corporate social responsibility projects which in turn improves the standard of living of the communities around them.

Originality/value

The study has provided an empirical insight on the importance of strategic alliance on firm performance. This is the first study done in the Kenyan context concerning strategic alliances formed by firms to improve on their performance especially on retail firms.

Article
Publication date: 1 December 1998

C.M. Clarke‐Hill T. and J. Bailey

The article is based on research carried out in 1995 on a sample of UK‐based retailers that were involved in international joint ventures and international buying alliances

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Abstract

The article is based on research carried out in 1995 on a sample of UK‐based retailers that were involved in international joint ventures and international buying alliances. The research identified the differences and comparison between these forms of alliances in terms of the competencies and skills that were being transferred between members of the alliances. The findings suggest that joint venture relationships appear to be closer and of a more strategic nature in achieving competitive advantage than buying alliances. Joint ventures appear to make a greater contribution to product strategy and learning than do alliances. However, little difference was found between the two alliance forms in terms of skill transfers.

Details

European Business Review, vol. 98 no. 6
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 6 March 2007

Christian Czipura and Dominique R. Jolly

More than ever, as far as legislation permits, long‐haul airlines tend to group in alliances. This paper examines the historic developments of two alliances in terms of

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Abstract

Purpose

More than ever, as far as legislation permits, long‐haul airlines tend to group in alliances. This paper examines the historic developments of two alliances in terms of their potential for increasing profitability of individual airlines.

Design/methodology/approach

Fourteen in‐depth interviews were conducted with airline executives belonging to the two leading alliances, SkyTeam and Star Alliance, as well as with aviation experts. In addition to the recent literature on alliances theory, the Internet was used to obtain data from international organizations, consultancies, universities and airlines – members and non‐members of an alliance.

Findings

Star Alliance might be one step ahead of SkyTeam (in terms of scope, number of members, organization, age …). Star Alliance is not only bigger but its geographical scope is wider; the number of members in each region is more balanced. The Star Alliance Services GmbH as head organization provides members with a workforce dedicated solely to the goals of the alliance. But Star Alliance's advantage may be short‐lived, especially since the airline industry demonstrates one of the fastest dynamics of all industries, and government regulations change rapidly as well.

Practical implications

Inter‐firm agreements in the airline industry have undergone dramatic changes and the future will bring additional transformations. The dichotomy between endogamic and exogamic partnerships is used to explain these changes. Previous agreements were endogamies: alliances between companies with comparable profiles mostly centered on back‐office activities as in Global Distribution Systems. Current mega alliances, such as SkyTeam and Star Alliance, are exogamies. They are alliances between companies mostly originating from distinct geographic territories. As such, they built on differences between partners regarding their networks. Their current focus is on front‐office activities to better serve customers and the alliances have used publicity to attract more customers. The main thrust is to increase the number of passengers so as to increase revenues. It is forecast that these mega alliances will again change their emphasis to back‐office activities to benefit from economies of scale and decrease operating costs.Originality/valueIs of value in highlighting how the issues indifferent kinds of alliances are not managed the same way. In exogamic relationships, partners must learn about and adapt to each other. The qualitative differences that exist between organisations can be a threat to the success of the alliance and must therefore be managed. In addition, the two types of alliances do not produce the same results. Endogamies standardize processes to obtain benefits of scale in at least one stage of the value chain. Exogamic relationships, in contrast, develop qualitative benefits that result from a synergy of different resources.

Details

Journal of Business Strategy, vol. 28 no. 2
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 1 October 2005

Larraine Segil

To show how the key to successfully managing alliances is developing and implementing alliance metrics.

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Abstract

Purpose

To show how the key to successfully managing alliances is developing and implementing alliance metrics.

Design/methodology/approach

The case of “Acme Manufacturing” (a composite of several firms) is used to illustrate the theory and reasoning behind the creation and tracking of alliance metrics appropriate to the life cycle of the partnership. These ideas are then applied to the ongoing Avnet/HP alliance.

Findings

Understanding and applying unique metrics at each stage allows management to anticipate alliance challenges and increase flexibility and adaptability when faced with changing economic and market conditions. Across the life cycle stages the partners must learn to monitor two types of measurements – development metrics, commonly employed in the start‐up and high growth stages, and implementation metrics, engaged throughout the professional, mature, decline, and sustain stages of the life cycle.

Research limitations/implications

This is a case study produced by a consultant specializing in alliance management. It has been peer reviewed but has not been subjected to independent audit.

Practical implications

Proactively managing alliances helps partners ensure value extraction, financial and non‐financial. Development metrics and implementation metrics can help alliance stakeholders understand and plan for the stages of the alliance life cycle while considering their knowledge transfer.

Originality/value

As the cases of Acme Manufacturing and Avnet/HP show, an understanding of alliance life cycles, cultures, and metrics can lead to successful planning, launching, and maintenance of a company's alliances.

Details

Strategy & Leadership, vol. 33 no. 5
Type: Research Article
ISSN: 1087-8572

Keywords

Article
Publication date: 8 August 2008

Richard Dealtry

This article aims to take a further step forward in examining those important business factors that will shape the future of best practice in the quality management of…

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Abstract

Purpose

This article aims to take a further step forward in examining those important business factors that will shape the future of best practice in the quality management of internal and external strategic alliances.

Design/methodology/approach

The article presents a speculative scenario on the future of strategic alliances in education, training, development and business, inspired learning by applying information and data from well‐established professional alliance management sources as the underpinning context for its guidelines.

Findings

Many different attempts have been and still are being made by business and academic institutions to set up working relationships that are intended to work well for both parties. These relationships travel under various titles, with the term “partnership” being the most common. Problems of sustainability and/or quality of outcomes are prevalent as a result of the alliance management perspective being taken on a limited understanding of the total relationship dynamics for success; too narrow a perspective on what dynamics have to be managed. Models for success are, however, readily available.

Research limitations/implications

In the broader context there is a wealth of research, best practice and practical experience in the field of strategic alliance management. iPCo's current research is therefore focused on how this professional resource and experience can be adopted to provide a quality framework of management practice that will enable business management to ensure that they make the right choices in the selection and construction of their strategic learning relationships both internally and externally.

Originality/value

The need for major innovations in the management of lifelong training and learning is now well established. Trying to achieve the successful implementation of these developments on a piecemeal basis has, however, proved to be an unrewarding process for many managers. The inertia of large institutional bodies and the “not invented here” syndrome have been proved to slow down or sideline major innovations. Knowing the size of the problem in each situation and how to deal with it effectively and efficiently at the right level is now one of the main strategic imperatives for corporate university managers.

Details

Journal of Workplace Learning, vol. 20 no. 6
Type: Research Article
ISSN: 1366-5626

Keywords

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