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Article
Publication date: 31 August 2012

Sophie Veilleux, Nancy Haskell and Frank Pons

This paper aims to focus on understanding three dimensions of international alliance formation by small to medium‐sized enterprises (SMEs): the role of internal actors

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Abstract

Purpose

This paper aims to focus on understanding three dimensions of international alliance formation by small to medium‐sized enterprises (SMEs): the role of internal actors, planning/opportunity management, and organizational learning.

Design/methodology/approach

The three dimensions form a proposed model of international alliance formation which is examined using semi‐structured interviews with 16 biotechnology SMEs from Montreal (Canada) and 12 from Boston (USA).

Findings

Findings deepen the understanding of the firm's internal development of international alliance strategy. Results generally support different roles of organizational actors in international alliance formation, often a combination of planning and opportunity management, and signal rather weak administrative routines to ensure organizational learning from the alliance experience. Interestingly, alliance formation strategies vary across the two cities (countries). Age of the firm, development phase, human and financial resources, and competencies may explain these differences.

Research limitations/implications

Limitations include a single respondent in each firm, sample size, and single sector (biotechnology). Future longitudinal research could combine information from and about the implication of all actors and their networks during alliance formation and examine the process by alliance functions (R&D, production, marketing) and governance modes (equity, non‐equity).

Practical implications

Results suggest weaknesses and potential avenues to be explored by managers.

Originality/value

To the authors' knowledge, this is a first attempt to model the internal dimensions of alliance strategy formation for SMEs, integrating the role of actors, planning and opportunity, as well as learning. Multiple quotations provide a rich environment for understanding practice.

Article
Publication date: 1 February 2002

Hitoshi Mitsuhashi

Although previous research has reached an agreement that finding appropriate alliance partners and reducing selection uncertainty are important for achieving high alliance

Abstract

Although previous research has reached an agreement that finding appropriate alliance partners and reducing selection uncertainty are important for achieving high alliance performance, it has not explored (1) how organizations reduce selection uncertainty, (2) what mechanism enables organizations to do so, and, more generally, (3) how organizations form alliances. This research examined these research questions by conducting fieldwork at 20 biopharmaceutical organizations in the Untied States. I identified three mechanisms for reducing selection uncertainty, including the (1) relational, (2) internal, and (3) contextual mechanisms. One of the findings implies that alliances do not always emerge out of embedded ties, and that there exist variations in organizational usage and reliance on ties and personal rapport in constructing interorganizational networks.

Details

The International Journal of Organizational Analysis, vol. 10 no. 2
Type: Research Article
ISSN: 1055-3185

Article
Publication date: 1 May 2005

Andrew Taylor

To explore alliance managers' perceptions of the most significant determinants of strategic alliance success in the software sector.

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Abstract

Purpose

To explore alliance managers' perceptions of the most significant determinants of strategic alliance success in the software sector.

Design/methodology/approach

The study is based on 30 key informant interviews and a survey of 143 alliance managers.

Findings

While both structural and process factors are important, the most significant factors affecting alliance success are the adaptability and openness of the alliance partners, human resource practices and partners' learning capability during implementation. Alliance partners should pay more attention to operational implementation issues as an alliance evolves, in order to achieve successful cooperative relationships.

Research limitations/implications

This research has responded to the call for more empirical study of the underlying causes of successful alliances. It contributes to the ongoing debate about which factors have most impact on strategic alliance outcomes, and complements prior research on several dimensions. First, using selected interview quotations to illuminate the quantitative analysis, it contributes to a deeper understanding of the alliance process, and reduced the ambiguity about which factors are most influential. In particular, the study provides support for those authors who have argued for the relative importance of the alliance implementation process. Second, support has also been found for the prominence of learning capability and the inter‐partner learning process as a major component of effective alliance implementation. Third, the results are based on the views of practicing alliance managers, which addresses a recognized gap in the literature.

Practical implications

The results send a signal to senior managers contemplating strategic alliances that they should not underestimate the importance of alliance process factors and the role that alliance managers play in achieving successful alliance relationships. This is particularly important, given the high levels of alliance failure reported in the extant literature.

Originality/value

While past research on strategic alliances has placed more emphasis on the importance of alliance formation than on implementation, there is an ongoing debate about whether structural, formation factors have more influence on alliance success than implementation or process factors. There has been only limited empirical work examining this interplay between structure and process, particularly from an operations perspective, and very few studies have examined strategic alliances in the software industry.

Details

International Journal of Operations & Production Management, vol. 25 no. 5
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 1 August 2005

Matthew J. Robson and Constantine S. Katsikeas

The purpose of this study is to develop and test a theoretical model of international strategic alliance (ISA) relationship development underpinned by the foreign investment…

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Abstract

Purpose

The purpose of this study is to develop and test a theoretical model of international strategic alliance (ISA) relationship development underpinned by the foreign investment decision process.

Design/methodology/approach

The conceptual model demonstrates an ISA investment decision process consisting of three ex ante formation aspects – parent firm top management's general attitude towards alliances, scope of parent's cooperation analysis for the focal alliance, and interfirm collaborative history – and two key ex post relational outcomes – parent's willingness to invest in the alliance business and satisfaction with the relationship. The theoretical propositions were tested among a sample of 94 ISAs using structural equation modelling.

Findings

The results show that top management attitude towards alliances is negatively associated with scope of cooperation analysis, but only where collaborative history exists. Scope of cooperation analysis, in turn, positively influences willingness to invest. And together these factors exert a positive influence on relationship satisfaction.

Originality/value

The ISA literature has devoted significant attention to partner characteristics important in venture formation, as well as to post‐formation partnership management issues. However, there is a dearth of empirical research explaining the role of venture formation aspects in influencing ISA relationship development and success. The study adds to the limited empirical research work on the role of venture formation aspects in influencing ISA relationship development and success. It provides new and detailed insights for business practitioners and academic researchers concerning the behavioural, decision process underlying ISA partnership progression.

Details

International Marketing Review, vol. 22 no. 4
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 19 January 2021

Vijay Pereira, Swetketu Patnaik, Mohammad Roohanifar and Ram Baliga

The purpose of this paper is to explore and unbundle the complex processes underpinning development of alliance capabilities, particularly in the context of emerging country…

Abstract

Purpose

The purpose of this paper is to explore and unbundle the complex processes underpinning development of alliance capabilities, particularly in the context of emerging country multinational enterprises. More specifically, this paper focuses on how firms internalize and translate knowledge generated from experiences gained by participating in international collaborations.

Design/methodology/approach

The authors adopt an exploratory case study approach to undertake in-depth processual analysis of alliance capability development in an Indian biopharmaceutical company. The authors focused their analysis on the initial four international alliances the company formed and identified key elements pertaining to alliance capabilities that the company internalized and those that it could not, as this was key in understanding alliance capability.

Findings

The research shows that based on experiences from previous alliances, the Indian organization was able to overhaul its negotiation and governance designing processes and practices as well as made robust changes to its internal communication and coordination practices. Interestingly, the company organization, however, did not make any significant changes to its processes and practices regarding partner selection.

Practical implications

The results from our study can be used by managers to develop processes and practices when it comes to developing alliance capabilities.

Originality/value

The paper is novel, as it addresses two specific gaps in the nascent alliance capability literature. First, it provides insights on how different constituent elements/aspects of alliance capability actually develop and integrate within the organizational system over time, and in the process, the paper identifies that some aspects are better internalized as compared to other aspects. Second, by focusing the attention on an Indian biopharmaceutical company, the authors attempt to address a gap in alliance capability development research, which has been neglected in emerging country multinational entities.

Article
Publication date: 8 May 2007

T.K. Das and Rajesh Kumar

The paper seeks to propose a framework for examining the dynamics of learning in the various stages of alliance development.

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Abstract

Purpose

The paper seeks to propose a framework for examining the dynamics of learning in the various stages of alliance development.

Design/methodology/approach

The three kinds of learning in alliances are described – namely, content, partner‐specific, and alliance management – and the saliences and implications of particular types of learning in different alliance stages are discussed.

Findings

The framework makes clear that alliance learning varies according to the stages of the alliance developmental process (formation, operation, outcome), and that different types of learning have different strategic implications.

Practical implications

Briefly, content learning augments the collective strengths of the alliance, partner‐specific learning (i.e. learning about a partner as opposed to learning from a partner) is crucial in determining whether or not an alliance gets formed, and alliance management learning helps build the confidence of the alliance partners in managing alliances.

Originality/value

The article responds to the need of managers with alliance responsibilities for a framework to help identify and exploit the most effective types of learning opportunities, vis‐à‐vis partners and the alliance as a whole, during the specific alliance development stages of formation, operation, and outcome.

Details

Management Decision, vol. 45 no. 4
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 3 August 2010

Daniel Arturo Lowensberg

This paper seeks to argue that managers need to apply a holistic and long‐term approach in their understanding of strategic alliances' paradigms to inform decisions. Owing to the…

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Abstract

Purpose

This paper seeks to argue that managers need to apply a holistic and long‐term approach in their understanding of strategic alliances' paradigms to inform decisions. Owing to the complexity of strategic alliance scenarios it is often a difficult task for management to know what information is required in order to take such decisions. It is suggested here that six widely used motivational paradigms in the formation of interorganisational relationships (transaction cost economics, resource dependence, strategic choice, stakeholder theory, organizational learning, and institutional theory) can be used not only during the formation stages of alliances but also during an alliance's lifecycle to help in decision making.

Design/methodology/approach

The paper proposes a discussion of possible shortcomings in the literature on motivational paradigms based on a review of the pertinent literature and, with the help of previously published cases/examples, suggests a new conceptual perspective of the paradigms.

Findings

The paper explains how and why motivational paradigms could be viewed as an interrelated web of issues throughout a strategic alliance's entire lifecycle – and not just at their formation stage when, often, they are used singly and in isolation of one another. It is proposed that their continuous and holistic use contributes to a manager's awareness of possible issues and helps his/her strategic management and decision taking. This new perspective is presented conceptually in a model.

Practical implications

For decision makers and managers: the proposed perspective will enhance their management and decision‐taking processes by increasing their awareness and acting as an aide‐mémoire of issues they need to consider/investigate and will reduce the possibility of alliance failure. For educators, it will expand the scope of traditional alliance formation paradigms and inform their teaching and research.

Originality/value

This is a novel approach to a traditional theory that expands its scope and usefulness.

Details

Management Decision, vol. 48 no. 7
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 1 May 2006

Anne Banks Pidduck

The purpose of this conceptual paper is to attempt to answer the related questions of how and why supply chain partners are chosen. Research objectives are to understand how and…

4084

Abstract

Purpose

The purpose of this conceptual paper is to attempt to answer the related questions of how and why supply chain partners are chosen. Research objectives are to understand how and why collaborative partners are chosen, by learning the actual decision‐making processes and key factors in partner selection.

Design/methodology/approach

A mixed methods approach was chosen, comprising: a focused literature review, to identify key issues, and informal interviews, leading to the development of a Partner Negotiation Model; a multiple case study approach, involving formal interviews about two partnerships, supplemented by documentation, contracts, correspondence and other records; and some manual data analysis and a qualitative research tool. The whole resulted in identification of significant issues for partner negotiation and selection.

Findings

Contrary to accepted theory in the alliance, partner selection, and decision‐making literature, the results show that alliance partners are chosen through a complex negotiation process rather than rational selection. The research and interviews with software industry collaborators suggest roles for factors such as complexity, cyclic negotiation, several types of partners, several levels of alliance formation, and hidden factors, such as personal friendship or perceived reputation. Overall, the problem of collaborative partner selection was found to be much more complex than expected.

Research limitations/implications

Research results are limited by the small sample of partnerships reviewed, but the results can be used as a starting‐point for further larger‐scale studies.

Practical implications

Supply chain partners in business can use these results to help them better understand the process and criteria for future supply partner selection.

Originality/value

The results may be used to develop a set of partner selection recommendations for practitioners. For specific firms that become involved in organizing supply chain alliances, the results of this work will provide decision support in terms of choosing among partners or indeed whether to engage in a particular relationship.

Details

Journal of Enterprise Information Management, vol. 19 no. 3
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 21 August 2017

Bodo Steiner, Kevin Lan, Jim Unterschultz and Peter Boxall

The purpose of this paper is to explore drivers of alliance formation in a specialized supply chain from a manager’s perspective, focussing on firm-specific resources, resources…

Abstract

Purpose

The purpose of this paper is to explore drivers of alliance formation in a specialized supply chain from a manager’s perspective, focussing on firm-specific resources, resources embedded in inter-firm relationships and capabilities under the control of the focal firm.

Design/methodology/approach

This paper focusses on the resource-based view to obtain insights from the analysis of a manager survey conducted in Canada’s beef sector, applying a logistic regression approach to study alliance formation.

Findings

In identifying significant roles for resource richness and diversification of resource usage, the analysis highlights the importance of resource characteristics underlying factor market imperfections as drivers of alliance formation in a single primary input supply chain. The results suggest that resource heterogeneity is important for alliance formation and organizational success in specialized supply chains.

Research limitations/implications

If previous alliance-related experience of managers, controlled for in the underlying cross-sectional survey, serves as an approximation for persistent unobservables impacting the alliance formation decision, we may face spurious state-dependence.

Practical implications

Managers interested in building compatible alliances in specialized single primary input supply chains may benefit from an improved understanding of the differential role of resource characteristics and resource heterogeneity for alliance formation, as these can function as a source of competitive advantage.

Originality/value

The analysis provides new insights from an individual manager’s perspective on alliance formation drivers in a specialized agri-food supply chain, thereby solidifying extant findings on alliance formation obtained in other sectors. The study contributes to the understanding of the role of resources in alliance formation with regard to prior relationship experience, resource heterogeneity and thus causal ambiguity, thereby also contributing to the debate of the role of relational capabilities vs firm-internal resources for sustained competitive advantage.

Details

Journal of Strategy and Management, vol. 10 no. 3
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 1 April 2003

Georgios I. Zekos

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some…

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Abstract

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

Details

Managerial Law, vol. 45 no. 1/2
Type: Research Article
ISSN: 0309-0558

Keywords

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