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Article
Publication date: 10 February 2012

Bendik Meling Samuelsen and Lars Erling Olsen

Brand managers must decide between extension and alliance strategies to grow their brands. This paper aims to describe testing of consumers' responses to two alternative…

Abstract

Purpose

Brand managers must decide between extension and alliance strategies to grow their brands. This paper aims to describe testing of consumers' responses to two alternative brand growth strategies: an extension strategy whereby a brand moves into a new category alone, and an alliance strategy whereby the same brand moves into the new category as a branded ingredient in a brand already established in that category. How far to stretch a brand is yet another strategic choice facing the brand manager, and the current research tests, under short and long category‐stretch conditions, the attitudinal responses to extension and alliance strategies.

Design/methodology/approach

The paper builds on the categorisation and incongruence literature. An experiment was employed to test the main hypotheses in the study.

Findings

Extensions outperform alliances, especially when the brand undertakes a long stretch, and short‐stretch strategies outperform long‐stretch strategies.

Practical implications

An extension strategy may be preferred to an alliance strategy, especially in situations in which the new growth opportunity requires a long stretch.

Originality/value

The paper compares, in the same study, the attitudinal effects of two important growth strategies widely employed by companies. Previous studies have assessed the performance of these two strategic options only separately.

Details

European Journal of Marketing, vol. 46 no. 1/2
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 6 September 2011

T.K. Das and Rajesh Kumar

The purpose of this paper is propose a strategic framework for understanding interpartner negotiation dynamics in alliances.

Abstract

Purpose

The purpose of this paper is propose a strategic framework for understanding interpartner negotiation dynamics in alliances.

Design/methodology/approach

The authors define interpartner negotiations as a process of reconciling and integrating the interests of the partners in an alliance, and consider four types of interpartner negotiation strategies – problem solving, contending, yielding, and compromising – and then discuss the dynamics of these negotiation strategies in the formation, operation, and outcome stages of alliance development.

Findings

The framework makes clear that the four types of interpartner negotiation strategies identified in the article need to be appreciated as having differential impact at each stage of alliance development.

Research limitations/implications

As interpartner negotiations occur at all stages of alliance evolution, future research may seek to empirically assess the impact of different interpartner negotiation strategies.

Practical implications

The paper discusses how alliance managers can deploy effective interpartner negotiation strategies for achieving alliance objectives at each of the three developmental stages.

Originality/value

The article responds to the need of managers with alliance responsibilities for a framework to help identify and exploit the most effective ways to conduct interpartner negotiations in alliances for productive interactions at different alliance development stages.

Details

Management Decision, vol. 49 no. 8
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 1 March 2000

Khai Sheang Lee, Guan Hua Lim and Jiuan Tan

Although the benefits of strategic alliances are well documented, whether strategic alliances can be a viable entry strategy option for small and medium‐size enterprises…

Abstract

Although the benefits of strategic alliances are well documented, whether strategic alliances can be a viable entry strategy option for small and medium‐size enterprises (SMEs) to successfully penetrate markets held by major incumbent suppliers is less clear. In this paper, strategic alliances are shown to be an effective entry‐cum‐deterrence strategy for SMEs to successfully penetrate markets that are well established and dominated by major corporations. In addition, the conditions under which SMEs can use strategic alliances as an entry strategy without restricting themselves to target only those markets ignored by bigger firms are identified. In terms of methodology, this paper follows a deductive approach – one based on game theory, to examine explicitly the reactions of bigger firms to the entry of SMEs into their markets, specifically taking into account the resource limitations faced by SMEs. To verify that the theoretical arguments presented are consistent with practice, two cases of the use of strategic alliances by SMEs as an entry strategy to penetrate markets dominated by major corporations are examined. The practices and experiences of these SMEs were found to be consistent with the theoretical arguments presented here.

Details

Journal of Small Business and Enterprise Development, vol. 7 no. 1
Type: Research Article
ISSN: 1462-6004

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Article
Publication date: 16 November 2015

Pedro Mota Veiga and Mário Franco

The purpose of this study is to understand in what way the business strategy of a firm operating on a global scale is linked to its alliance portfolio,from the…

Abstract

Purpose

The purpose of this study is to understand in what way the business strategy of a firm operating on a global scale is linked to its alliance portfolio,from the product-market matrix of Ansoff (1957) and the resources-partners matrix of Yasuda and Iijima (2005).

Design/methodology/approach

To meet this objective,the case study method was adopted,with data being obtained from interviews and documentary analysis of the selected firm/case: Borgstena Textile (BT).

Findings

Based on a content analysis approach,it was possible to observe an alliance portfolio with advantages for BT and include those partnerships in the four quadrants referring to the nature of resources and partners defined by Yasuda and Iijima. In terms of growth strategy,BT simultaneously defined the typology of product-market strategies proposed by Ansoff,i.e. BT tries to use strategic alliances to execute specific business strategies.

Practical implications

This research seeks to make a practical contribution,identifying the main association between the alliance portfolio and several specific firm strategies. This may allow better understanding of the composition of the alliance portfolio and,in this way,improve strategic management. This means that alliances should be managed as a whole and not in a dyadic way.

Originality/value

This study is innovative because it seeks to make a contribution to the literature,from a theoretical perspective,by developing two matrixes by Ansoff (1957) and Yasuda and Iijima (2005). These frameworks allow us to analyze the relationship between alliance portfolio and business strategy.

Details

Management Research Review, vol. 38 no. 11
Type: Research Article
ISSN: 2040-8269

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Article
Publication date: 17 December 2019

Adesegun Oyedele and Fuat Firat

The purpose of this paper is to respond to the call of international marketing professionals for more studies on strategies that firms use in response to the complexities…

Abstract

Purpose

The purpose of this paper is to respond to the call of international marketing professionals for more studies on strategies that firms use in response to the complexities of interacting with other institutions in the emerging markets (EMs) of sub-Saharan Africa. The key research question investigated by employing the exploratory qualitative data gathered is: What strategies and global alliances do small local firms (SLFs) in Nigeria adopt to succeed under complex market conditions?

Design/methodology/approach

The methodology employed is exploratory qualitative research. The authors conducted extended interviews to generate rich case study data from the top management of the selected SLFs in Nigeria. The interview data were assessed using open, axial and selective coding to uncover macro-narratives that guide SLFs’ strategies and global alliances.

Findings

The macro-narratives derived from the qualitative case analysis reveal a theoretical framework centered on three major elements of competitive strategies in Nigeria: build global capacity and strategic alliances from the get-go; develop local strategic alliances; master matching alliance partners’ needs to create innovative payment plans and, when necessary, shift the transaction cost burden to alliance partners. Matching theory rather than traditional network theories is better at explicating SLFs’ alliances in Nigeria. Implementation of these strategies requires flexible strategic initiatives.

Originality/value

The study adapts institutional interaction theory, network theory, matching alliance perspective, trade credit theories and the literature on small firms’ strategies in EMs to explicate successful small local firm strategies and global alliances under complex market conditions in Nigeria. The recognition that SLFs regularly migrate and shift the burden of transactions’ cost to multiple stakeholders in the supply network by matching customers and supplier needs is important. The discovery of matching theory in explicating SLFs’ global alliances in Nigeria is unique to this study.

Details

International Marketing Review, vol. 37 no. 1
Type: Research Article
ISSN: 0265-1335

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Article
Publication date: 13 November 2009

Evelyne Vanpoucke, Kenneth K. Boyer and Ann Vereecke

The purpose of this paper is to identify different information flow strategies to enhance integration in strategic alliances and studies these strategies with respect to…

Abstract

Purpose

The purpose of this paper is to identify different information flow strategies to enhance integration in strategic alliances and studies these strategies with respect to contextual factors and the impact on performance.

Design/methodology/approach

The paper examines empirical data gathered from 56 manufacturing companies, describing 112 supply chain relationships. An empirical taxonomy is created based on cluster analysis.

Findings

Based on a parsimonious description of inter‐firm information flows in the literature and this paper's empirical findings, three types of alliances are identified: Silent; Communicative; and IT intensive. While Silent alliances have the poorest overall performance, substantial similarities are found between Communicative and IT intensive alliances. In particular, the analysis suggests that IT intensive alliances, albeit performing better on operational capabilities, are not performing better on relationship satisfaction compared to Communicative alliances. Additional analyses indicate that partners of an IT intensive alliance are substantially more interdependent and larger in size.

Research limitations/implications

This research presents a taxonomy of information flow strategies in a supply chain context. This research is not describing causality, since the data are not longitudinal in nature.

Practical implications

Managers need to selectively invest in IT according to an overall supply chain integration strategy, which also takes softer, less technological forms of integration into consideration.

Originality/value

This research provides insight into inter‐firm information flows from a contingency perspective, recognizing heterogeneity of firms and supply chain practices.

Details

International Journal of Operations & Production Management, vol. 29 no. 12
Type: Research Article
ISSN: 0144-3577

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Book part
Publication date: 25 July 2008

Ravi Madhavan, Turanay Caner, John Prescott and Balaji Koka

In the network strategy view, relative competitive advantage stems not merely from opportunity structures embedded in networks but also from the distribution of ability…

Abstract

In the network strategy view, relative competitive advantage stems not merely from opportunity structures embedded in networks but also from the distribution of ability and motivation among firms. Thus, there is a need to “bring the firm back in” to the network strategy narrative. We demonstrate that a mixed-methods design, blending large-sample data with micro-data on specific firms and their networks, can increase our understanding of the interplay of network structure and actor mechanisms, thus bridging the chasm between theory and practice in network strategy. We believe this is a critical step toward the “strategic design of networks.”

Details

Network Strategy
Type: Book
ISBN: 978-0-7623-1442-3

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Article
Publication date: 1 August 2000

Daniel Chan

Looks at the world airline industry, from 1978 to 1998, from a strategy perspective. Traces the strategic developments and the strategy responses of the key airline…

Abstract

Looks at the world airline industry, from 1978 to 1998, from a strategy perspective. Traces the strategic developments and the strategy responses of the key airline players that have had a profound impact on the shape and direction of the industry. These include the deregulation of the industry, the nature and extent of competition, the emergence of brand/differentiation based competition, and airline alliance developments, strategies and their implications. Also provides a glimpse of what the future will hold for the world airline industry, including the prospects of increased global market concentration and the emergence of mega consortia, comprising lead airlines from key regions of the world, on the global stage. These global consortia, which will marginalise other players, will also compete against each other on the basis of branding/differentiation.

Details

Journal of Management Development, vol. 19 no. 6
Type: Research Article
ISSN: 0262-1711

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Article
Publication date: 1 February 2003

Colin Clarke‐Hill, Huaning Li and Barry Davies

Co‐operation and competition characterise the inter‐firm relationships in strategic alliances. This article proposes a paradox approach to studying co‐operation and…

Abstract

Co‐operation and competition characterise the inter‐firm relationships in strategic alliances. This article proposes a paradox approach to studying co‐operation and competition. It explains the paradox perspective and provides an analytic framework for the paradox of co‐operation and competition. In the light of the paradoxical nature, it advocates a multi‐paradigm approach to co‐operative and competitive strategies, which combines strategic positioning, the resource‐based view and game theory. The article suggests that the multi‐paradigms can not only encompass the contradictions of the paradox from the different perspectives, but also emulate the individual ones and provide a holistic picture. The multi‐paradigm approach therefore establishes a better methodology basis than fragmented orthodox theories in exploring the contradictory, interactive and dynamic nature.

Details

Management Research News, vol. 26 no. 1
Type: Research Article
ISSN: 0140-9174

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Article
Publication date: 12 June 2019

Larry Hearld, Jeffrey A. Alexander, Laura J. Wolf and Yunfeng Shi

Multisector health care alliances (alliances) are increasingly viewed as playing an important role in improving the health and health care of local populations, in part by…

Abstract

Purpose

Multisector health care alliances (alliances) are increasingly viewed as playing an important role in improving the health and health care of local populations, in part by disseminating innovative practices, yet alliances face a number of challenges to disseminating these practices beyond a limited set of initial participants. The purpose of this paper is to examine how alliances attempt to disseminate innovative practices and the facilitating and inhibiting factors that alliances confront when trying to do so.

Design/methodology/approach

The authors adopted multiple holistic case study design of eight alliances with a maximum variation case selection strategy to reflect a range of structural and geographic characteristics. Semi-structured interviews with staff, leaders and board members were used.

Findings

The findings show that dissemination is a multidirectional process that is closely if not inextricably intertwined with capacity- and context-related factors (of the alliance, partnering organizations and target organizations). Thus, standardized approaches to dissemination are likely the exception and not the rule, and highlight the value of existing frameworks as a starting point for conceptualizing the important aspects of dissemination, but they are incomplete in their description of the “on-the-ground” dissemination processes that occur in the context of collaborative organizational forms such as alliances.

Originality/value

Despite a rapidly expanding evidence base to guide clinical and managerial decision making, this knowledge often fails to make its way into routine practice. Consequently, the search for effective strategies to reduce this gap has accelerated in the past decade. This study sheds light on those strategies and the challenges to implementing them.

Details

Journal of Health Organization and Management, vol. 33 no. 4
Type: Research Article
ISSN: 1477-7266

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