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Strategic Alliances (SAs) have become widely used by global businesses for pursuing strategic goals.¹ Because of the special nuances that can make these kinds of joint ventures (JVs) effective means for achieving challenging strategic goals, they are generally more difficult to establish and manage. Some of the larger, more successful users of SAs recognize the special nature of these relationships and some such as Cisco and Pfizer have even created high-level divisions or departments in their organization explicitly focused on planning, pursuing, and managing outside strategic partnerships. These units not only monitor the alliances (in some cases, dozens at a time) but also develop tools and insights that will allow the organization to engage in SA more successfully.

The method applied to carry out the study of the transformation of strategic alliances in emerging markets is discussed in this chapter. Specifically, this chapter discusses how the whole study is conducted, i.e. the identification and development of the research issues, the research aim and problem, the development of the conceptual framework, the development of the research method, how the empirical study is analyzed and conclusions are drawn. The specific research strategy applied to conduct the current study is a longitudinal research approach. A short discussion on how the ECE countries are classified into various groups is conducted in the current chapter and a detailed discussion on the classification of ECE countries into different groups is also conducted in chapter eight. Moreover, the logic for adopting a longitudinal research strategy to conduct the current study of the transformation of strategic alliances is also justified. The identification and choice of the case companies, the logic followed in the development of the questionnaire and how much and to what extent the questionnaire is modified are also discussed in detail. The identification of the interviewees, the execution of the interviews and the transcription of the interview materials and the structuring of the cases are also discussed in detail.

A key argument in transaction cost economics (TCE) is that transactions are aligned with governance structures so as to effect a discriminating – mainly transaction cost economizing – match (Williamson, 1991). The archetypical problem in TCE is the vertical integration or “make-versus-buy” decision, and the focus of transaction cost economizing in this context is on mitigation of “holdup” problems associated with investments in specific assets (Klein, Crawford, & Alchian, 1978; Williamson, 1985). However, this asset specificity condition in only one example (albeit a significant one) of a more general class of contractual hazards. Indeed, in his most recent discussion of the TCE agenda, Williamson (1996, p. 3) suggests that “identification, explication, and mitigation of contractual hazards – which take many forms, many of which long went unremarked – are central to the exercise.”

This chapter highlights and examines the journey of strategic alliances, how alliances lead to the creation of new alliances, and whether alliances succeed or precede firms' market networks. Moreover, the chapter attempts to identify the market and environmental factors which impact the journey and the end result of alliances. The findings show that before the alliance and in the early strategic alliance phase, firms can have direct and indirect relationships/networks which can lead to the formation of strategic alliances. The other finding is that one of the main factors which determines the journey of strategic alliances is the degree of internationalization of the firm and the market. The journey of alliances was also found to be different in the various groups of Eastern and Central Europe (ECE) countries depending on the pace or degree of adaptation of those countries. It was also found that well-developed networks have a positive impact on the alliance results. Moreover, the chapter also provides evidence that alliances enable firms to defend and strengthen existing networks to build new networks and to penetrate partners' networks. It is finally observed that it is difficult to determine whether alliances succeed or precede networks.

We examine the benefits for firms participating in collaborations funded via minority equity placements. Selling firms, on average, realize significant increases in share value – strongly correlated with the size of the equity stake, its beta, and the relatedness of the two firms (by industry). Shares of purchasing firms, though, show neutral responses on average (but positive response for R&D intensive alliances). Further, purchasing firms have better financial performance than their industry peers in the years surrounding the announcement (suggesting, unlike joint ventures, that poor performance is not their motivation). Selling firms, however, may be motivated by poor operating performance.

Assuming that information about the participants in the network circulates over the ties comprising it, firms’ structural positions – defined in this chapter by their location in the network of past strategic collaborations – should affect their general reputations as collaborators and the knowledge that structurally proximate organizations possess about their past behavior. In turn, the information benefits associated with different network positions should influence the types of governance structures and contractual features that appear in new alliances. This chapter examines how the positions of biotechnology firms in the established network of strategic alliances influences one of the important contractual terms of new partnerships: whether or not one partner finances the activities of its counterparty as part of the deal.

The goal of this work is to determine the nature and potential of the impact of the development of strategic alliances on the achievement of the key Sustainable Development Goals (SDGs) of the states.

The study is involved with the use of the universalisation method, statistical analysis method, trend-based method, simulation-based game approach and correlation analysis method. The values of estimated indicators have been determined through the use of these global rankings, identifying their level between 2018 and 2021 in the countries which rank among the leading countries in the field of development of strategic alliances (Malta, Canada, Sweden and Israel).

It has been established that sustainable economic development of strategic alliances scarcely ever has a positive impact on the achievement of the SDGs of the states. It has been established that such interaction is possible if these business entities observe certain terms ensuring the necessary development parameters of components of sustainable development. Conditions of the achievement of effect from the impact of business associations of these goals have been identified empirically.

It has been proven that such business associations as strategic alliances due to the range of their activity and the potential associated with it can act as economic institutions that complement the functions of the state towards the achievement of sustainable development milestones.

The academic novelty of this research is that it substantiates the potential to secure the impact of strategic alliances on the achievement of certain SDGs associated with the observance of certain organisational and economic conditions of strategic management.

Here we consider the various ways in which airlines integrate their business activities. The thin markets, long distances, poor infrastructure, and challenging terrain over which many airlines based in developing countries operate can make it difficult to reap the economies of scale, scope, and density that carriers in more developed nations enjoy. There also remain institutional barriers to cross border trade in airline services. As a response to this, airlines from developing regions “cooperate” in a number of ways. This may involve multinational ownership, code sharing, or joint ventures. The rationale for these actions, together with discussion of the outcomes of some of them, is considered here.

Alliances between companies are an example of a collaborative strategy adopted in anticipation of highly uncertain markets. Since 1980, the commercial airline industry has been affected by a progressive liberalization worldwide. In this historical context, most airlines reacted with defensive movements in the face of high competition. In the case of airlines in the Spanish market, one of the largest in the world due to the weight of the tourism sector in its economy, airlines responded in various ways to the intensification of competition. Iberia, the main Spanish airline, established different defensive alliance policies. In the 1980s, alliances were mainly collaborative. Since 1998, airline alliances have become coopetitive in nature, as was the case with the creation of One World group (American Airlines, British Airways, Cathay Pacific, Qantas and Iberia). The partners began to interact in a more horizontal way, maintaining various agreements (code-sharing, handling, schedule coordination, shared sales, fleet maintenance) without renouncing their independence in the face of global competition. Iberia has subsequently modified the composition of its portfolio to move towards a more vertical collaboration with the integration into the IAG Group (Iberia, British Airways, Air Lingus and Vueling). This second phase is a quest to increase market power with deep changes in the nature of its alliances while maintaining coopetitive alliances.