Need and potential risks of strategic alliances for competing successfully

In today’s global economy, many companies’ managers consider strategic alliances as a key strategic alternative. Even if it is true that strategic alliances can be a really powerful competitive tool, managers should pay attention to all potential risks before involving in a partnership. This paper aims to address a series of issues that may arise when forming a strategic alliance.strategic management, strategic alliances, cross culture

Learning in Strategic Alliances

{Excerpt} Strategic alliances that bring organizations together promise unique opportunities for partners. The reality is often otherwise. Successful strategic alliances manage the partnership, not just the agreement,for collaborative advantage. Above all, they also pay attentionto learning priorities in alliance evolution. The resource-based view of the firm that gained currency in the mid-1980s considered that the competitive advantage of an organization rests on the application of the strategic resources at its disposal. These days, orthodoxy recognizes the merits of the dynamic, knowledge-based capabilities underpinning the positions organizations occupy in a sector or market. Strategic alliances—meaning cooperative agreements between two or more organizations—are a means to enhance strategic resources: self-sufficiency is becoming increasingly difficult in a complex, uncertain, and discontinuous external environment that calls for focus and flexibility in equal measure. Everywhere, organizations are discovering that they cannot “go” it alone and must now often turn to others to survive

Strategic Alliances in the Global Airline Industry

Strategic alliances are common to any industry. Their presence is felt quite significantly in the airline industry. Starting in the US in 1978 deregulation of airline industry has since brought about sea changes in functioning of the industry. This paper attempts to understand the developments and strategic alliances that have occurred in the airline industry since deregulation. These strategic alliances exist in various forms and differ widely in scope and no consensus on classification was found. The advantages and disadvantages of strategic alliances with respect to the airline industry have been discussed. It is felt that the industry is getting increasingly concentrated. However, no conclusive remarks can be made about consumer welfare.

Technological Diversification and Strategic Alliances

This paper examines empirically the relationship between the internal technological profile and the diversification through strategic alliances of the largest 219 industrial firms world-wide. It explores three related issues. First, the paper shows that firms? internal technological diversification is more pronounced than external technological diversification. Second, it confirms the idea that technological diversification is more pronounced than product and market diversification. Finally, by means of multiple correlation analysis, this work studies the relationship between firms? economic performance, internal technological diversification and diversification through strategic alliances. The empirical investigation combines firm level data on US patents, strategic technological alliances, production and marketing alliances, and firms? economic performances.-

Managing ambiguity of strategic alliances – the role of negotiations

Strategic alliances have become an important part of most company's portfolios. In an era of rapid technological change, the ever rapidly changing competitive landscape, and the globalization of competition more and more companies are choosing to participate in alliances. With their competitors entering into alliances, firms are often faced with few choices other than that of forming alliances to nullify the potential advantage of their rivals. The high failure rates are mirrored in the demise of some alliances that have garnered widespread publicity. This paper studies the increasing importance of negotiations in faceing and managing the ambiguity of the process of alliances and tries to formulate some rules to be followed in order to achieve the right balance in strategic alliances.strategic alliances, negotiation success, ambiguity, competition, failure

Testing Assumptions about Evaluating Strategic Alliance Performance

Researchers have used a variety of measures to evaluate strategic alliance performance. In this paper we use data collected on performance of R&D consortia in the U.S. and of Spain-based equity and non-equity dyadic alliances to investigate empirically five basic assumptions made by strategic alliance researchers. We find that while several assumptions are supported, others are not. Results are consistent across samples. We conclude with recommendations for how to evaluate performance in future research into strategic alliances.strategic alliances; performanca evaluation; equity alliances; consortia;

STRATEGIC ALLIANCES: FROM SUCCES TO FAILURE

Over the past few years, the strategic alliances had been increasingly common. The term “strategic alliance” can mean many different things, but the commonly used meaning entails a joint corporative effort by two or more companies working towards agreed ustrategic alliances, benefits, risk of failure

Case Studies of Strategic Alliances in U.S. Beef Production

Calf marketing, commercial beef carcass, and natural/implant-free beef strategic alliances were examined via case study to determine alliance structure and whether each addressed risk, transaction costs, capital availability, and other concerns. All alliances were structured differently through vertical or horizontal coordination, and each had been established within the past 12 years. Alliance administrators reported that an advantage to cow-calf producers was higher cattle prices received relative to producers outside the alliances. The alliances reduced transaction costs and increased information flow among segments. Alliances did not specifically address risk or increased access to capital for technology adoption or expansion purposes.cattle industry, industry structure, risk, strategic alliances, transaction costs, Agribusiness, Livestock Production/Industries,

THINKING GLOBALLY -- FARMING GLOBALLY

The agriculture industry continues to adopt business practices based on strategic alliances. Generally these alliances emphasize vertical coordination wherein producers enter into long-term agreements with suppliers, processors, and businesses in other sectors of the food and fiber industry. Alternatively, producers should explore initiating horizontal linkages; that is, strategic alliances among producers. Sharing ownership of seasonal equipment, multi-year land rotations among specialized farm operations, and sharing ownership of several farm businesses are strategies that can offer production and marketing efficiencies, as well as risk management opportunities.Agribusiness,

Inter-firm cooperation and innovation: The role of strategic alliances

The relationship between inter-firm cooperation and downscaling, outsourcing and multiple firm strategic alliances is explored conceptually and with data from innovative firms. Downscaling is related to cooperative outsourcing as a significant influence shaping inter- firm relations. Embedding cooperative outsourcing in interfirm strategic alliances is advantageous, particularly for small and medium-size firms. Network structures within alliances are important to consider, however, since they hold the key not only to the division of labour within an alliance, but also to the longevity of the alliance, cooperation, and the relations of trust that pervade transactions.