The purpose of this paper is to portray and analyze the importance of learning and knowledge transfer in strategic alliances created in the context of emerging markets…
The purpose of this paper is to portray and analyze the importance of learning and knowledge transfer in strategic alliances created in the context of emerging markets, Russia and Taiwan in particular, and to identify the influence of relational capital factors on the effectives of learning in strategic alliances. Strategic alliances are one of the main tools companies resort to learn, acquire and develop new knowledge and skills.
This research is conducted by case study with four international strategic alliances between Taiwanese and Russian companies.
The results showed that the main driver determining the propensity of the companies located in the emerging markets to establish strategic alliances is learning intent. More specifically, the companies are willing to acquire partner’s managerial, marketing and production knowledge and skills. Relational capital created between partners, and presented through the existence of trust, communication and openness proved to have a determinant influence on the effectiveness and quality of learning process in the strategic alliances, especially in the context of the emerging markets. However, there is an inverted-U relationship between the learning potential of an alliance and the strength of relational involvement of the alliance partners, who utilize the certain means to prevent the negative effects of over-embeddedness.
The major contributions that were made by the study are the following: the authors made an attempt to synthesize different approaches and investigate what are the primary factors affecting strategic alliances formation and operation in the emerging markets context. The authors extended the previous research by reviewing, not only the impact of the relational capital on the process of learning among the partners in the strategic alliances but also by analyzing the forces influencing the strength of these ties. The authors further investigated whether the continuous strengthening of the relational ties is necessary and always beneficial for the companies.
This paper is focused on the elaboration of a comprehensive model for the analysis and understanding of strategic networks/alliances, by using the classic…
This paper is focused on the elaboration of a comprehensive model for the analysis and understanding of strategic networks/alliances, by using the classic: structure‐conduct‐performance‐paradigm. The intention in developing such a comprehensive model is to identify factors and/or elements, which may be considered more relevant than other factors, in the creation and maintenance of strategic networks/alliances. With the model it should be possible to describe that the performance of the joint actions, such as general success of the network cooperation, the profits achieved by individual companies, or the appreciation perceived by the individual, are functions of conduct, such as interaction, exchange of knowledge and adaptation. These factors are in turn governed by structural phenomena, which are discussed in the paper. Different dimensions, levels of aggregation as well as sequences of cause and effects in the process of creating and managing strategic networks/alliances, is included and discussed in the paper.
The purpose of this paper is to examine and develop a strategic performance model for small and medium enterprises linking with inter-firm networks, strategic alignment…
The purpose of this paper is to examine and develop a strategic performance model for small and medium enterprises linking with inter-firm networks, strategic alignment and environmental dynamism.
Drawing on the live experiences of 757 respondents, including managing directors/owners and CEOs of different SMEs, the authors proposed a theoretical model representing how firms could attain strategic performance through inter-firm networks with a mediating role of strategic alignment.
The current study demonstrated that SMEs with strong inter-firm networks have the ability to align business activities with strategies and get earlier strategic performance. Strategic performance looks skeptical to ever gain acceptance until strategic alignment is adopted by small and medium enterprises. The findings of this study indicated that environmental dynamism strengthens the relationship between strategic alignment and strategic performance.
This research extended the understanding about the inter-firm networks, strategic alignment and environmental dynamism surrounding strategic performance. This study identified and empirically tested how the inter-firm networks impact on strategic performance through the mediating effect of strategic alignment.
The number of strategic alliances has almost doubled in the past ten years and is expected to increase even more in the future. More than 20,000 corporate alliances have…
The number of strategic alliances has almost doubled in the past ten years and is expected to increase even more in the future. More than 20,000 corporate alliances have been formed world‐wide over the past two years, and the number of alliances in the USA has grown by 25 percent each year since 1987. Outsourcing is a form of strategic alliance which is attractive for many organizations, but it is not simple or easy to create, develop, and support. There are many implementation problems and the failure rate is projected to be as high as 70 percent. In this paper a case study methodology is employed and the chosen case is outsourcing. Our case study shows that the development of a long‐term strategic outsourcing relationship requires moral, ethical standards, trust and a willingness not to try to exploit the new relationship at the expense of long‐term cooperation. The paper concludes that a strategic outsourcing relationship needs a specific management strategy and that companies should also pay more attention to the burdens embedded within it.
This paper aims to provide a comprehensive overview of the motives, structure and performance attributes of horizontal cooperations between logistics service providers…
This paper aims to provide a comprehensive overview of the motives, structure and performance attributes of horizontal cooperations between logistics service providers (LSPs). Based on an analytical classification model, distinctive types of logistics cooperation that characterize the logistics landscape are identified.
Empirical data were collected on horizontal LSP cooperations from managers of German LSPs. Different uni‐ and multi‐variate statistical methods including ANOVA and cluster analysis were applied to the dataset of 226 cooperations for a total of 6,081 involved parties.
Horizontal cooperations with other LSPs are an organizational form used by 57 percent of LSPs. Cooperation decisions are substantially driven by external market objectives. Six distinctive types of cooperation are identified. They reveal the dominance of multi‐lateral and international networks that are mainly based on contractual agreements. There is a clear preference for partners with similar market competencies and for strong functional integration. Despite its inherent complexity, performance of these cooperations is high – its less than 19 percent failure rate makes these cooperations substantially more stable than cooperations within manufacturing industries.
This study is limited to an exploratory, descriptive approach in providing a sound understanding of the cooperation landscape.
The findings contribute transparency to horizontal LSP cooperations and a common understanding of their idiosyncrasies. The conclusions help logistics managers to position themselves better within the cooperation landscape. Further, the analyses offer managers a conceptual classification of horizontal LSP cooperations and some guidance on how to structure their individual LSP cooperations more successfully.
This paper is the first empirical study that defines the types of cooperation that comprise the logistics cooperation landscape. The analysis integrates a holistic perspective of their contractual, organizational, functional, geographical, service and resource scope and matches them with underlying motives and performance attributes.
Strategic decision making in cooperation projects. The decision deals with the process of generating a strategy for R&D and technological innovation in developing…
Strategic decision making in cooperation projects. The decision deals with the process of generating a strategy for R&D and technological innovation in developing countries, through international cooperation.
Students of programs of strategic management, business policy and management of international cooperation. Target courses include: strategic management seminars, international cooperation seminars, MBA.
The case shows the process carried out by a team led by Braulio Perez Astray, manager of the innovation department of the Foundation University of A Coruna (Spain) and Radhames Mejia, executive vice-rector of the Pontifical Catholic University Madre y Maestra (Dominican Republic) to design the strategy for R&D and Technological Innovation of the Dominican Republic. It describes the tasks and responsibilities undertaken in the INPOLTEC Project, the result of the international cooperation between Spain and the Dominican Republic. It included the involvement of the Administration of Government of both countries, the contributions of the scientific community and a significant sample of Dominican companies, as well as the advice of Spanish experts and technologists in the field of innovation and technology policy. The case arises from the position of Braulio Perez Astray, leader of the project. The objective of this case is to analyze the potential transfer of this experience to other countries in Central America and Caribbean.
Expected learning outcomes
The learning objective is to facilitate students to investigate the decisions in the strategic process in the field of innovation and to reinforce the focus of international cooperation as a mechanism for strategic support in stimulating the flow of knowledge in science and technology.
Teaching notes are available. Please consult the librarian for access.
Purpose – Investigate the causes and consequences of foreign financial institutions' divestments in China's banking sector which is an example of cross-border transactions…
Purpose – Investigate the causes and consequences of foreign financial institutions' divestments in China's banking sector which is an example of cross-border transactions by institutional investors.
Methodology – Use a sample of 26 foreign financial institutions' strategic investments in Chinese banks. Ten of those investments are divested after the global financial crisis. We investigate determinants of the divestment, business cooperation after the divestment, and Chinese banks' stock price reactions to the divestment announcement.
Findings – The poor performance of foreign financial institutions, which is attributable to the global financial crisis, and the institutions' regulated low equity ownership are important causes of divestment (or whole divestment). In contrast, Chinese banks' poor performance does not cause foreign divestments. Foreign financial institutions that fully divest their equity stakes usually terminate their cooperative business, which was required by the strategic investment agreement. The Bank of China and the China Construction Bank, which experienced large H-share divestments, experienced large economic declines in A-share values.
Social implications – Foreign financial institutions' strategic investments created substantial shareholder value before the divestment. Banking sector developments that rely on foreign investments are vulnerable to economic downturns in developed countries.
Originality/value of paper – To the best of our knowledge, this is the first trial to analyze the impact of divestments on divested bank performance.
The closure of Fagor Electrodomésticos in October 2013, the most iconic cooperative in the Mondragon Group, not only cast doubt on the economic and social management of…
The closure of Fagor Electrodomésticos in October 2013, the most iconic cooperative in the Mondragon Group, not only cast doubt on the economic and social management of the cooperative itself but also called into question the very viability of the overall cooperative model. In addition to describing the evolution of this cooperative in its last years in business, this chapter offers a comprehensive review of the mechanisms of inter-cooperation in the Mondragon Group and the way in which they were applied in the crisis at Fagor Electrodomésticos.
The methodology applied is a qualitative research methodology mainly based on semi-structured interviews.
The main conclusion of the chapter is that the closure of the cooperative was largely caused by market conditions. The chapter also highlights the validity of the mechanisms of inter-cooperation applied in managing employment which contributed to a rapid resumption of the employment situation of surplus personnel from Fagor Electrodomésticos.
The main contribution of this chapter comprises a detailed description of the methods used by the Mondragon Group to manage employment adjustment at the time of closure of its largest industrial cooperative during the recent general economic crisis (2008–2014), and thus avoid large-scale unemployment, its concommitant problems, and deeper deterioration of social capital in the Mondragon area. Further research is needed to compare this process with other international experiences based on cooperation.
The current strategic leadership literature tends to advocate a leader-centric (upper-echelon) approach to strategy, one in which the leader positions the organization competitively within an environment. Based on complexity theory, we argue that strategic leadership in a fast-paced environment works to organize both the environment and the organization in ways that enhance the firm's adaptability, innovativeness, and fitness. We propose a two-pronged strategy: Foster cooperative relationships with the organization's environment, and enable adaptive organizations that are “partners” in the strategic leadership function.
This study analyzes how technological changes in the context of Industry 4.0 influence buyer-supplier relationships (BSRs).
This study analyzes how technological changes in the context of Industry 4.0 influence buyer-supplier relationships (BSRs).
The study is explorative in nature; hence, an empirical qualitative research design is applied. It bases on 45 expert interviews with managers from German and Austrian industrial companies as empirical data. A qualitative content analysis is conducted to inductively analyze the empirical material and to identify common patterns, themes and categories.
The paper finds that future transactions are mainly based on digitized, automated procedures, transferring various value creation processes to platforms. BSRs become more intense in nature. Companies consolidate their supplier base by focusing on important strategic suppliers.
As the paper is of exploratory nature, it can only present first qualitative insights. Further studies can extend the results by analyzing and contrasting BSRs in various industries or value chain stages and map differences and similarities, respectively.
The paper's results provide implications for management and corporate practice alike. These help companies to raise Industry 4.0's full potential as for BSRs creating and securing long-term and sustainable competitive advantages.
This paper is among the first to empirically investigate BSRs in the context of Industry 4.0. Providing implications for research and corporate practice, it contributes to tapping Industry 4.0's full potential complementing an extra-organizational perspective.