The Role of Strategic Alliances in the International Organization of Industry

1993 ◽  
Vol 25 (9) ◽  
pp. 1229-1246 ◽  
Author(s):  
R Ahern

In this study the motivations for entering international strategic alliances are investigated. The reasons for alliance entry reflect the ways firms are restructuring economic activities. A theoretical basis for the study is built from the conceptual arguments of transaction-cost theory and resource-dependence theory. A partial synthesis of the two approaches suggests that alliances are especially well suited to the combined pursuit of increased efficiency and reduced uncertainty. The empirical investigation is based on a series of thirteen case studies, each involving a small Canadian firm and a foreign partner. Growth resulting from efficient access to foreign markets was an important reason for Canadian firms to enter alliances. Collaboration enabled small firms to learn about market demand. This information reduced the uncertainty of international marketing, and was used to guide the development and modification of products. Complementary abilities, where the Canadian firms offered technology and their foreign partners had marketing capabilities, were at the heart of most alliances. In general, alliances were considered necessary to protect proprietary information and to forge strong links with firms taking over important downstream functions.

2016 ◽  
Vol 21 (3) ◽  
pp. 381-397 ◽  
Author(s):  
Kostas Selviaridis ◽  
Aristides Matopoulos ◽  
Leslie Thomas Szamosi ◽  
Alexandros Psychogios

Purpose The purpose of this paper is to understand how reverse resource exchanges and resource dependencies are managed in the service supply chain (SSC) of returnable transport packaging (RTP). Design/methodology/approach A single case study was conducted in the context of automotive logistics focusing on the RTP SSC. Data were collected through 16 interviews, primarily with managers of a logistics service provider (LSP) and document analysis of contractual agreements with key customers of the packaging service. Findings Resource dependencies among actors in the SSC result from the importance of the RTP for the customer’s production processes, the competition among users for RTP and the negative implications of the temporary unavailability of RTP for customers and the LSP (in terms of service performance). Amongst other things, the LSP is dependent on its customers and third-party users (e.g. the customer’s suppliers) for the timely return of package resources. The role of inter-firm integration and collaboration, formal contracts as well as customers’ power and influence over third-party RTP users are stressed as key mechanisms for managing LSP’s resource dependencies. Research limitations/implications A resource dependence theory (RDT) lens is used to analyse how reverse resource exchanges and associated resource dependencies in SSCs are managed, thus complementing the existing SSC literature emphasising the bi-directionality of resource flows. The study also extends the recent SSC literature stressing the role of contracting by empirically demonstrating how formal contracts can be mobilised to explicate resource dependencies and to specify, and regulate, reverse exchanges in the SSC. Practical implications The research suggests that logistics providers can effectively manage their resource dependencies and regulate reverse exchanges in the SSC by deploying contractual governance mechanisms and leveraging their customers’ influence over third-party RTP users. Originality/value The study is novel in its application of RDT, which enhances our understanding of the management of reverse exchanges and resource dependencies in SSCs.


2021 ◽  
Vol 22 (2) ◽  
pp. 675-695
Author(s):  
Nurul Izni Kamalrulzaman ◽  
Azlinzuraini Ahmad ◽  
Akmalia Mohamad Ariff ◽  
Mohd Shaladdin Muda

Small and Medium Enterprises (SMEs) in the agriculture sector in Malaysia are still seen to contribute only a small portion towards Gross Domestic Product (GDP) and the total number of the national workforce. As for agricultural SMEs, innovation activities are needed to produce quality agricultural-based products to meet the increasing of Malaysia and world market demand. Nevertheless, innovation among agricultural SMEs is still less encouraging. Hence, this study aims to investigate the effect of innovation capabilities towards performance of agricultural SMEs in Malaysia and determine the role of strategic alliance as a moderator in influencing the performance of agricultural SMEs. The conceptual framework of innovation capabilities is based on Resource-Based View Theory and Schumpeter Innovation Theory that considers strategic alliance will positively affect the relationship between innovation capabilities and SME performance. A total of 136 respondents from Agricultural SMEs were used for data analysis process using SmartPLS 3.0 software. The results show that innovation capabilities have a positive impact on the performance of SMEs, while strategic alliance does not affect the relationship between innovation capabilities and agricultural SME performance. Although strategic alliance has insignificant effect, this might be resulted from the emphasis of this study as it defined strategic alliances as acquisitions of companies. For agricultural SMEs in Malaysia, entrepreneurs need to look at an alliance from a positive perspective by looking it as a joint venture process in resource sharing that will benefit the enterprises, thus it is not only meant acquisition. The implication of this study is expected to contribute and enhance the role of innovation capabilities among entrepreneurs and strategic alliances in the Malaysian agricultural SMEs.


Author(s):  
Rebecca Waerder ◽  
Simon Thimmel ◽  
Benedikt Englert ◽  
Bernd Helmig

AbstractGrowing social, political, and economic uncertainties have shown that organizational resilience is becoming increasingly important for nonprofit organizations (NPOs). To ensure their long-term survival, NPOs need to respond to extreme events and adapt their services and processes. The theoretical premise of resource dependence theory assumes that interactions between an organization and its environment are crucial for the long-term adaptation to adversities. The present study investigates the contributions of nonprofit–private collaborations to organizational resilience of NPOs in light of the refugee crisis in Germany in 2015. Findings from a multiple holistic case study design indicate that collaborations of nonprofits with for-profit organizations support NPOs with stability, resources, expertise, and compassion to overcome resource-based, conceptual, and emotional challenges.


2020 ◽  
Vol 9 (2) ◽  
pp. 106 ◽  
Author(s):  
Bochra Idris ◽  
George Saridakis

We use data from Small and Medium Sized Enterprises (SMEs) in the UK to examine the link between the presence of women directors and exporting activity. To do this, we build on resource-based view (RBV) and resource dependence theory (RDT) and show that SMEs with women on the board of directors are less likely to be involved in exporting activity compared to SMEs without women directors. Nevertheless, this negative relationship is moderated by seeking network advice, which can be explained through the social network theory (SNT).


2020 ◽  
Vol 7 (12) ◽  
pp. 187-206
Author(s):  
Mahmoud A. Hammad ◽  
Ahmed Ali ◽  
Ahmed Barakat ◽  
Ahmed Dabees ◽  
Mohamed Gamil ◽  
...  

The purpose of this study is to analyze the influences of transaction factors on inter-firms relationships in different businesses. The study focuses on the comparison between the Chinese and Egyptian business with regarding to buyer and seller relationships in textile industry in order to find out the differences in buyer-seller relationships between Egypt and China and how the cultural factors influence the contracting practice between these two countries. Therefore, transaction cost analysis (TCA), relational contracting theory (RCT) and resource dependence theory (RDT) would act as the important tools to find out how the business relationship works in different culture background. Combining the three theories, we can conclude the general view about the transaction mechanism in the two countries. Chinese market situation, weak legal system and informal institutions combining with the “guanxi” embedded business environment make the Chinese small firms rely on the relational contracting more than formal contracting. Meanwhile, the high value for law makes Egyptians prefer to formal contracting. The findings highlight the fact that the level of contracting mechanism was found to be more positive in Egypt than in China and was statistically significant. In other words, the Egyptians tend to use the formal transactional mechanisms which emphasize legal conditions and incentive systems, whereas the Chinese prefer the relational mechanisms that govern exchanges through moral control and trust in the relationships between the buyers and suppliers. A hierarchical multiple regression approach employing the OLS regression model was carried out and the findings show that almost 30% of contracting mechanisms can be explained by the model, while the remaining percentage (70%) can be explained by other factors not included in the research model. In addition, the findings revealed that the association between supplier specific investments and contracting becomes significantly more enforced in Egypt than in China when the size of the buying firm increases. Furthermore, contracts have a control effect on buyer-supplier relationships in case of unanticipated eventualities.


1993 ◽  
Vol 25 (10) ◽  
pp. 1511-1526 ◽  
Author(s):  
R Ahern

In this paper I explore the effects of international strategic alliances on the competitive position of small Canadian firms. Canadian policymakers advocate strategic alliances as mechanisms for domestic firms to participate internationally. However, little is known about the implications of these partnerships for small R&D-intensive firms. The role of government in promoting alliances is first considered. Anticipated outcomes of partnerships, along with the actual implications of alliance relationships, are considered in some depth. A series of case studies made it possible to identify factors that affect the benefits, costs, and risks associated with international strategic alliances. Safeguarding technology is a primary consideration because technical capability is at the heart of each firm's competitive advantage. The paper concludes with an overview of the important factors affecting the competitive position of small firms involved in strategic alliances. It is possible to identify issues warranting closer consideration both from corporate executives and from policymakers interested in international involvement through strategic partnerships.


2019 ◽  
Vol 31 (3) ◽  
pp. 479-500
Author(s):  
Sajad Fayezi ◽  
Rebecca Stekelorum ◽  
Jamal El Baz ◽  
Issam Laguir

Purpose The purpose of this paper is to investigate the impact of institutional drivers and buyer dependency on green supply chain management (GSCM) practices and performance of suppliers. Design/methodology/approach The authors draw on institutional theory and resource dependence theory to construct a conceptual model than links institutional drivers, GSCM practices, buyer dependency and performance outcomes. The authors test the hypotheses using partial least squares structural equation modeling applied to a sample of suppliers in the Australian manufacturing sector. Findings The results confirm that suppliers develop GSCM practices of green sourcing and eco-design to enhance their performance in response to both coercive forces and voluntary behaviors of their institutional environment. However, buyer dependence of suppliers explains important paradoxes in their uptake of GSCM practices. For example, while the institutional drivers encourage greater adoption of green sourcing by suppliers, increase in buyer dependence in turn reduces the positive performance outcome of green sourcing. Practical implications The authors establish that understanding and assessment of the role of buyer dependency is critical for managers in charge of GSCM practices of their company. This enables practitioners to proactively manage paradoxes resulting from institutional drivers and buyer dependency through an informed decision on the type of GSCM practice to be adopted for effectuating performance improvement. Originality/value The authors provide empirical evidence on paradoxes that curtail performance associated with the uptake of GSCM practices by suppliers moving beyond institutional environment by considering the role of buyer dependency.


2016 ◽  
Vol 9 (5) ◽  
pp. 86
Author(s):  
Cristina Bettinelli ◽  
Mara Bergamaschi ◽  
Rasmi Kokash ◽  
Silvia Biffignandi

<p>We investigate whether and how process innovation of small enterprises is influenced by allying with another firm. Drawing on resource-based view of the firm and integrating findings from studies on the liabilities of age and newness, we argue: 1) for a direct association between strategic alliances and process innovation, and 2) in favor of a moderating role of firm age on this relationship. The results from a representative sample of 159 Italian small firms shed new light on the role of strategic alliances in explaining process innovation, and support this proposal. We find a significant and positive relationship between strategic alliances and process innovation, and a moderating effect of firm age on this relationship. This suggests that a younger firm benefits more than an older one from the increase in process innovation activities occurring as a result of alliances with other firms. The age of the firm appears to dictate the nature of relationship between strategic alliances and process innovation. Significant and novel theoretical and managerial implications are discussed.</p>


2015 ◽  
Vol 40 (4) ◽  
pp. 377-404 ◽  
Author(s):  
Stefano Usai ◽  
Emanuela Marrocu ◽  
Raffaele Paci

Building on previous literature that provides extensive evidence concerning flows of knowledge generated by interfirm agreements, in this article, we aim to analyze how the occurrence of such collaborations is driven by multidimensional proximity among participants and by their position within firms’ networks. More specifically, we assess how the likelihood that two firms set up a partnership is influenced by their bilateral geographical, technological, organizational, institutional, and social proximity and by their position within networks. Our analysis is based on agreements in the form of joint ventures or strategic alliances, announced over the period 2005–2012, in which at least one partner is localized in Italy. We consider the full range of economic activities, which allows us to offer a general scenario and to investigate specifically the role of technological relatedness across different sectors. The econometric analysis, based on the logistic framework for rare events, provided three noteworthy results. First, all five dimensions of proximity jointly exert a positive and relevant effect in determining the probability of interfirm knowledge exchanges, signaling that they complement each other rather than function as alternative channels. Second, the highest impact on probability is due to technological proximity, followed by organizational, geographical, and institutional proximities, while social proximity has a limited effect. Third, we find evidence concerning the positive role played by networks, through preferential attachment effects, in enhancing the probability of interfirm agreements.


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