International Strategic Alliances

Abstract

This paper reports the findings of an empirical investigation of strategic alliance agreements between UK firms and their European, Japanese and US partners. The aim of this paper is to shed some light on the international strategic alliance activity of UK firms and ascertain the objectives and motives of international strategic alliances. In addition, the perceived performance of the strategic alliance is considered together with the perceived level of satisfaction of a range of alliance activities. The findings should prove to be a useful guideline for researchers and practitioners engaged in understanding international strategic alliances. The analysis should allow managers to examine the important issues in the formation of international strategic alliances and allow them to understand the assessment of performance and satisfaction of the alliances formed.

Key Results: The findings have shown a definite pattern in UK international strategic alliance activity. The results of the study indicate that the majority of UK firms engage in international partnerships for marketing-related activities and are essentially driven by the financial cost and risk of entering a foreign market; access to overseas market and improving market share. The findings have also indicated that the majority of UK managers are satisfied with the overall performance of the international strategic alliance.     

An evolutionary perspective of opportunism in high-technology alliance: the evidence from South Korean companies

Adopting an evolutionary perspective, we introduce an alternative approach to the opportunism in strategic alliance where the accumulated risks during alliance operation lead to opportunism in alliance. To examine this process, a total of 358 employees from South Korean firms in the high technology sector completed a survey on opportunism in strategic alliance, measuring each firm's perceived risks on the relational and operational issues in alliance and their antecedents and outcomes. Key results show that perceived risks on the relationship between alliance partners cause a passive type of opportunism, whereas perceived risks both on the relationship between alliance partners and on the achievement of alliance objectives cause an active type of opportunism. Specifically, cultural difference showed the largest influence on relational risks, whereas issues in equity involvement showed the largest influence on performance risk. Based on the findings, theoretical and practical implications on the opportunism management in strategic alliance are discussed.     

Cooperative or competitive in alliance formation: Alliance patterns with respect to rivals

Premised on the assumption that strategic alliance is a type of competitive action toward rivals, this study explores how a firm uses alliances differently with respect to rivals. I distinguish between two types of alliances that directly involve rivals: alliance with a rival and with a rival's partner. The former and the latter reflect cooperative‐ and competitive‐orientations respectively. Further, I investigate what drives a focal firm to adopt a particular alliance rather than another. The findings indicate that the key consideration explaining different alliance patterns is the resource profiles of focal and rival firms. This study contributes to the literature on competitive dynamics and strategic alliance by suggesting a new approach to integrate interfirm competition and cooperation. Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd.     

战略联盟的学习过程及其管理

随着商业环境的变化,战略联盟已成为企业提高竞争优势的有效途径,学习是企业参加战略联盟的主要动机。通过战略联盟学习类似于一种实物期权投资,在获取新知识和新技术方面将使企业更具有灵活性并能有效地控制投资风险。然而,战略联盟的学习过程比组织内部的学习过程存在更多的障碍。     

A process leading to strategic alliance outcome: The case of IT companies in China,Japan and Korea

Although theories and research have provided valuable information on strategic alliance, it still seems difficult for practitioners to overview the process and subsequent outcomes of strategic alliance in a single frame. This is because the conditions of alliance are different from one alliance to another, which makes it difficult for practitioners to apply existing research findings to their own cases. One of the ways to overcome such difficulties in practical application would not be focusing on alliance processes with unique or idiosyncratic features of each alliance but instead focusing on elements that exist in most alliances. To find out the process that leads to the outcome in strategic alliance that is easily applicable for practitioners, the current study measured the behavioral direction and relational outcomes of strategic alliance based on benefit and risk perception in information technology (IT) companies in China, Japan and South Korea. Results show that firms set the direction and the intensity of their participation in alliance based on benefit and risk perception. Specifically, while perceived benefits promoted active participation in alliance, perceived risks increased protective participation in alliance. Also, these behavioral directions predicted the relational outcome in strategic alliance such that while active behavioral orientation predicted commitment to the relationship with the partner firms, protective behavioral orientation led to dissolution of the relationship. The present study provides useful insights for strategy associates, and evoke more various and detached academic approaches in the field of strategic alliance discussions.     

论战略联盟形成过程中的关系资本管理

战略联盟的发展过程包括形成、运行和终结三个阶段,其中形成过程由于充满不确定性和模糊性而至关重要。对战略形成过程中联盟各方关系资本的有效管理,有利于联盟中资源、知识的共享、整合与创新,因此,本文认为应采取各种有效措施管理关系资本,以促进联盟的形成和发展。     

Determining international strategic alliance performance: A multidimensional approach

This paper considers the relationship between subjective, multidimensional measures of international strategic alliance (ISA) performance and predictors of success both before the alliance is formed (pre-alliance formation factors) and during the operation of the alliance (post-alliance formation factors). The empirical study, based on a web-survey, investigates a sample of Danish partner firms engaged in 48 equity joint ventures and 70 non-equity joint ventures with partners from around the world. A multi-dimensional operationalization of alliance performance measurement is utilized in order to capture both process and outcome aspects of alliance performance. The results show a significant relationship between alliance performance and host country risk as well as partner reputation preceding alliance formation. During the operation of the alliance, relationships between collaborative know-how, trust, protectiveness, complementarity, cultural distance and alliance performance were found.     

Motives and partner selection criteria in international strategic alliances: Perspectives of Chinese firms

We examine the strategic motivation for international strategic alliance (ISA) formation and partner selection criteria in a sample of 203 Chinese ISAs using questionnaire data obtained from Chinese partners. The highest ranked strategic motives of the Chinese firms are maintaining market position, international expansion, and technology exchange. In contrast, the major strategic motives for alliance formation of the foreign firms are characterised by market penetration and learning how to operate successfully in China. As anticipated the relative importance of strategic motives for ISA formation is found to vary between Chinese firms and foreign firms. We also examine aspects of partner selection criteria for ISA formation from the perspective of Chinese partners. Findings show that the task-related selection criteria are determined more by the strategic motives for ISA formation than are the partner-related selection criteria. This confirms that task-related selection criteria tend to be specific to the alliance whereas partner-related selection criteria are more general in nature.     

Building trust in international alliances

Two facts stand out unambiguously in today's global business. One, international alliances are proliferating, underscoring the strategic importance managers increasingly attach to “competition through cooperation.” Two, trust is key to successful international alliances. Together, these two facts point to the need to better understand trust, a task that was attempted in an earlier article (Parkhe, 1998). Yet such understanding, while necessary, is not sufficient. This article, the second of a two-part series, shows how partners can proactively manage an alliance relationship in order to develop trust. Toward this goal, the discussion includes trust generation through process-based, characteristic-based, and institutional-based mechanisms, which are to a significant degree within alliance managers' control. Managers must also be mindful of several critical features of alliance dynamics. These are described in some detail, as is the need to appropriately “calibrate” trust level in an alliance to the lifecycle stage of the alliance. With proper management attention, too much and too little trust can be avoided.     

竞争性战略联盟的结构选择模式研究

竞争性战略联盟是由竞争对手组建的企业战略合作关系,竞争性联盟分为规模型和互补型两种类型。研究联盟结构选择问题时,应注意到竞争性战略联盟中同时存在竞争与合作这一对反向作用力,选择恰当的治理结构有助于维持两者的平衡,因此,联盟结构模式的选择对竞争性联盟尤为重要,是保证联盟平稳运行并创造价值的主要途径。     

Strategic alliances by venture capital backed firms: an empirical examination

A growing body of literature examines the formation of strategic alliances as an important value-added role provided by venture capital firms. This paper contributes to this literature by examining two related questions: whether venture capital firms use strategic alliances as a substitute or compliment to capital infusion, and how venture capital firms use alliances to mitigate different types of risk. Results from 2505 venture-backed startups reveal that venture capital firms treat alliance formation as a substitute for capital infusion and that the breadth of the network of syndication partners investing in the startup increases the number of its strategic alliances. We also find intentionality in alliance formation. Specifically, firms operating in industry environments characterized by technical risk are more likely to form alliances with partners capable of mitigating technical risks, and firms operating in environments characterized by market risk are more likely to form alliances with partners capable of mitigating market risk. Our findings lend additional support to the perspective that alliances represent an important mechanism through which venture capital firms add value to their portfolio companies.     

基于不同动机的联盟控制方式选择及其对联盟绩效的影响——中国企业联盟的实证分析

Strategic alliance can aid firms to build and sustain their competitive advantages. Firms set up strategic alliance mainly for two purposes: resource acquisition and capability learning. Formal control and social control are two widely adopted control mechanisms to secure the effectiveness of strategic alliance. In this study, we construct a model to analyze the choice of control mechanisms based on alliance motivations and the influence of control mechanisms on alliance performance. Based on a survey of 607 Chinese firms, we find that when resource acquisition is the key motivation behind alliance, formal control should be enhanced. Whereas when capability learning is the main purpose of alliance, social control becomes a better choice. Furthermore, this research also finds that the impact of both formal control and social control on alliance performance are nonlinear. Suggestions are provided on how to effectively use control mechanisms to attain the purposes of strategic alliance and on how to use control mechanisms to enhance alliance performance. __________ Translated and revised from Nankai guanli pinglun 南开맜理评论 (Nankai Business Review), 2007, (5): 4–11     

Do culturally distant partners choose different types of joint ventures?

Studies of international joint ventures yield conflicting results when looking at the role played by cultural distance. We argue that managers understand the problems associated with cultural distance and seek to mitigate its impact by selecting certain types of joint ventures. Using Das and Teng's [Das, T. K., & Teng, B.-S. (2001). A risk-perception model of alliance structuring. Journal of International Management, 7(1): 1–30] typology of unilateral and bilateral alliances to categorize a sample of ventures based on their strategic focus, our results indicate that greater cultural distance is associated with an increased probability that a marketing or supplier alliance will be formed and a lower probability that an innovation-oriented alliance will be formed.     

企业战略联盟的组织形态演进

长期以来,战略联盟一直是战略管理中倍受关注的焦点。从两条主线追溯了战略联盟组织形态的演进路径———其中一条是战略联盟的组织形态特征,另外一条则是企业联盟的战略涵义。分析战略联盟组织形态演进过程中的共同特征,对我国企业的发展和竞争具有一定的现实意义。     

Influences on Strategic Planning Processes among Irish SMEs*

In this study we argue that the approach to strategy formation reflects organizational and individual influences. The study, based on questionnaire responses from 359 firms, examines a number of organizational and individual factors influencing the type of strategy formation process adopted. The constructs of strategic posture, organization structure, management ownership, and Chief Executive Officer (CEO) experience are measured. Three models predicting strategy formation approaches are explored. First, an organizational model emphasizing the impact of strategic posture and organization structure is analyzed. Second, a model is tested dealing with CEO and top management team characteristics reflecting the effects of agency costs and experience base. Finally, an integrative model combining both organizational and individual factors is evaluated. The results highlight the importance of organizational factors and show, for instance, that entrepreneurial firms tend to adopt more formal strategic planning approaches, while conservative firms adopt more incremental approaches. In addition, both management shareholding and CEO experience are negatively related to formal strategic planning activities.     

基于企业资源异质性的战略联盟偏好研究

关于战略联盟的大多数研究都是沿袭传统的交易成本理论。然而,随着战略联盟数量和方式的不断增加,该理论的解释能力受到质疑。以企业间拥有资源的异质性特征为基础,利用资源学说的观点解释了基于資源异质的战略联盟偏好并对其联盟特性进行了分析总结。     

Outcome quality of small- to medium- sized enterprise–based alliances: The role of perceived partner behaviors

Proponents of transaction cost theory have assumed that alliance formation is motivated by environmental uncertainty, with the structure and outcomes of alliance relationships being determined by the costs versus benefits of opportunism on the part of alliance participants (Williamson 1985; Zaheer and Venkatraman 1995). Williamson argued that cooperative relationships driven by perceived efficiency are inherently prone to opportunism or “self-interest seeking with guile” (1975, p. 6). In alliance relationships, opportunism generally takes the form of negative departures from the behavioral norms established for the alliance and is usually motivated by the firm leader’s desire to improve the firm’s position, regardless of the cost to the alliance (Parkhe 1993a). The traditional focus of transaction cost theory has been on the norms established by the formal alliance relationship. These contractual mandates encompass both goal-based and relationship-based expectations. Failure to meet these types of expectations significantly, but not completely, explains the quality of outcomes for alliance relationships.A growing body of research on social control theory suggests that the social embeddedness of the alliance relationship may also establish behavioral norms against which opportunistic departures may be judged (Ouchi and Parkhe). Such norms are extracontractual or taken-for-granted expectations established by both the prior experience of the firms’ leaders and the placement of the firms’ alliance relationships within the network of interpersonal relationships maintained by the firms’ leaders. This study explores the relative impact of negative departures from both contractual and extracontractual behavioral norms on the quality of alliance outcomes, while controlling for a wide range of environmental and firm-specific factors suggested to have an impact on alliance outcome quality.Norwegian manufacturing firms that met the study’s size criteria and belonged to any one of 10 industry types were surveyed. From a list of over 7,000 small- to medium-sized enterprises (SMEs), we randomly selected and mailed surveys to the key decision leaders of over 2,500 firms, ultimately identifying, of the 433 (17.6%) owners and general managers responding, 252 (58%) that maintained alliance relationships.The results of this study challenge several assumptions regarding the determinants of alliance outcomes. A number of resource- and environment-based factors, including the firm’s industry, size, and financial strength, are not found to significantly influence alliance outcomes. The financial return provided by the SME’s alliance relationships, as an indicator of goal-based determinants, was found to be the most important factor related to outcome quality, but the results also suggested that contract noncompliance and the perceived behaviors of the SME’s alliance partners are significant as well. Additionally, the notion that SME-based alliance relationships are generally marked by assumptions of trust rather than opportunism was supported. When partner behaviors are seen or perceived to be inconsistent with either contractually mandated or socially obligated expectations, the outcomes of those relationships are negatively effected, even when the financial goals have been met. An additional finding of this study was that firm leaders make judgments regarding the quality of alliance outcomes in light of their cumulative experience with alliance relationships.     

Global versus Local Strategic Alliances

The authors present a framework within which to decide when a firm should choose a single global strategic alliance partner, when regional alliances are more appropriate, and when it should use multiple local partners. Strategic factors proposed as determining this choice refer to: (1)economies of scale; (2)competitive pressure; (3)market and environmental certainty; and (4)global coordination. Operational considerations that constrain the choice involve: (1)market restrictions; (2)resource availability; (3)fiduciary risk; and (4)adaptation needs. These two sets of factors interact to suggest the appropriate geographical scope of strategic alliances. Two case examples are evaluated within this framework; one dealing with a global strategic alliance, the other with local strategic alliances.     

基于生命周期的产业技术联盟政府管理策略研究

产业技术联盟是国家和区域技术创新体系的重要组成部分,政府要根据科技发展规划以及重点产业和战略性新兴产业的技术创新需求,加强对产业技术联盟的规划与管理。通过分析产业技术联盟的生命周期特征,本文指出了联盟不同发展阶段存在的主要问题,提出了联盟不同发展阶段的政府管理思路,设计了联盟组建阶段、成长阶段、成熟阶段和再造阶段的政府管理策略,旨在为政府明确产业技术联盟的管理重点,促进联盟的快速和可持续发展提供决策支持。     

Rogues and Deviants: a game-theoretic perspective on opportunism in strategic alliances

ABSTRACT

This research examines how relational factors, such as monitoring, relative alliance identity (RAI), and trust, influence opportunism and, consequently, alliance performance. The authors suggest that the strategic alliances literature would benefit from recognising that opportunism does not always originate from the firm (rogue opportunism), but can also originate from individual employees (deviant opportunism). Hypotheses are tested in a multi-method approach within a business simulation and a cross-sectional sample of alliance executives. The results demonstrate a U-shaped relationship between trust and opportunism; however, monitoring moderates the relationship such that at high levels of trust, opportunism is practically non-existent. Further, results indicate that employees’ identification with the alliance impedes opportunism. Additionally, both types of opportunistic behaviours negatively impact the performance of partner firms and alliances.