scholarly journals Does Strategic Alliance Matter In Managing Innovation In China?

2014 ◽  
Vol 30 (3) ◽  
pp. 793 ◽  
Author(s):  
Li (Isabella) Liu ◽  
Sajjad M. Jasimuddin ◽  
David Faulkner

<p>Innovation is the route to competitive advantage for a firm. In this regard, strategic alliances, particularly international joint venture (IJV), is an effective vehicle for creating innovation capabilities. This paper attempts to explore innovation activities in IJVs between Chinese and Western companies. China is currently largely an OEM country that supplies the whole world with a wide variety of products. However it still lacks a higher level of innovation. The paper reports a qualitative study conducted at two Sino-Western IJVs about how IJVs can help Chinese companies to become innovative. China has easy access to foreign technology, but is weak in its domestic clustering of technology infrastructure. Sino-Western joint ventures are found useful in creating transferable innovation in China. The paper suggests key success factors for creating innovation capabilities through IJV formation.</p>

Author(s):  
Michael Milgate

AbstractThis article presents a conceptual framework that participants in cooperative ventures may use to protect core competencies and proprietary information, while allowing the cooperative venture to benefit from these. While strategic alliances, in various forms, are becoming more common (Beamish and Delios, 1997), a potentially issue that often remains unresolved is how to protect your core competencies, while still cooperating openly with your partner, particularly when advanced technology is involved. It can be difficult for partners in an alliance to cooperate and openly share strategic know-how. Cooperation and openness are necessary, however, if a joint venture is to succeed. Since the success of any strategic alliance is based on cooperation, trust and an open sharing of competencies, potentially sensitive knowledge might be exposed through the joint venture. This is why many executives regard strategic alliances with reservation (Lorenz, 1992). They resist giving away core strategic competencies that might be misused in other contexts.


2021 ◽  
Vol 14 (8) ◽  
pp. 385
Author(s):  
Andrejs Čirjevskis

This paper aims to unbundle the antecedents of competence-based synergy in the strategic alliance formation process by employing the ARCTIC framework. The current research provides a new empirical application of the ARCTIC framework to reveal the success factors of reciprocal synergies of the Renault–Nissan–Mitsubishi strategic alliance in the automotive industry. By taking a resource-based view on the sources of competitive advantage, the current paper contributes to theoretical and practical issues of global strategic alliances as part of the existing literature on strategic management, international business, and corporate finance. By bridging qualitative and quantitative research methods, the paper provides validity to the ARCTIC framework with an application of the real option valuation. A conceptual model of research helps practitioners and scholars to explore critical success factors of alliance formation and to predict a competence-based synergy of strategic alliances. Future research may explore the institutional context of strategic alliances, specifically, exploring the impact of the French and Japanese governments on the Renault–Nissan–Mitsubishi alliance’s synergies.


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):  
Purnendu Mandal

Since behavioral and cultural factors play a major role in strategic alliances between partners, IT managers must understand the intricacies involved in the development of resultant IT infrastructure in satisfying both business requirements and cultural fit of the aligned partnering units. This paper first highlights the IT-related issues and cultural issues which are important in the process of developing a strategic alliance between partners. Then, a case study involving a major telecommunications organization and several retail electricity organizations is presented to illustrate the IT requirements and human-related considerations. The analysis focuses on the requirements of pre-strategic alliance phase of the negotiation process.


2010 ◽  
Vol 12 (3) ◽  
pp. 355
Author(s):  
Ahmad Bashawir Abdul Ghani ◽  
Malcolm Tull

Competition  in  global  industries  is  shifting  increasingly from  inter-firm  rivalry  to  rivalry  between  networks  of  firms. Strategies of individual  firms are thus contingent on the degree of interdependence that exists between them and the parent firm in the network. The present study examines the effect of network affiliation on a member firm’s decision to enter a foreign market and  international  strategic  alliance  formation.  Affiliate  firms have two options available to them: (1) enter into a competitive strategic alliance with a competitor or (2) enter into a symbioticstrategic alliance with  the parent firm of the network organiza-tion.  We tested  this assertion  using  data  from archival  sources on  sixty-five  Japanese  automobile  suppliers  that  had  set  up strategic  alliances  in  Malaysia  and  that  belonged  to  various inter-organizational  networks.  Results  indicate  that  when  affili-ate firms are dependent on the parent firm, they prefer to form symbiotic  strategic  alliances.  Conversely,  affiliate  firms  prefer competitive  strategic  alliances  with  competitors  when  they  are not  dependent  on  the  parent  firm. ALLIANCE  FORMATIONA Study of the Malaysian Automobile Supporting IndustryKeywords: automobile industry; joint venture; mode of entry; networks; strategic alliances


2017 ◽  
Vol 8 (3) ◽  
pp. 1 ◽  
Author(s):  
Margherita Russo ◽  
Maurizio Cesarani

Objectives. The research aims to investigate how firms can achieve alliance success. In global markets, the alliance failure rate is very high. This study will try to understand why, facing with such a high failure rate, more and more firms decide to enter or form strategic alliances. It appears necessary to identify key factors and show how firms can successfully manage them in each phase of alliance lifecycle.Methodology. For this study, a qualitative approach was adopted, in order to explore and understand the research problem. The issues of alliance success factors is investigated through the analysis of the existing literature, focusing in particular on the last two decades.Findings. By reviewing several theoretical perspectives, we identified alliance success factors and showed what kind of relevance they have in each phase of alliance lifecycle. It was found that strategic alliances develop through three phases. Alliance success lies on successful management of key factors, involved in each phase.Research Limits. Research deals with the issues of alliance success factors at the level of a single alliance and not at the level of an alliance portfolio. Further research should extend the analysis perspective.Managerial Implications. Firms involved in a strategic alliance should consider several critical aspects. For the entire alliance lifecycle, they have to look for a high degree of fit with their own partners. Another important aspect is related to the risk of opportunistic behavior, which could be reduced through the choice of an appropriate governance form and the development of social capital.


Author(s):  
Purnendu Mandal

Since behavioral and cultural factors play a major role in strategic alliances between partners, IT managers must understand the intricacies involved in the development of resultant IT infrastructure in satisfying both business requirements and cultural fit of the aligned partnering units. This paper first highlights the IT-related issues and cultural issues which are important in the process of developing a strategic alliance between partners. Then, a case study involving a major telecommunications organization and several retail electricity organizations is presented to illustrate the IT requirements and human-related considerations. The analysis focuses on the requirements of pre-strategic alliance phase of the negotiation process.


2000 ◽  
Vol 6 (2) ◽  
pp. 32-43 ◽  
Author(s):  
Michael Milgate

AbstractThis article presents a conceptual framework that participants in cooperative ventures may use to protect core competencies and proprietary information, while allowing the cooperative venture to benefit from these. While strategic alliances, in various forms, are becoming more common (Beamish and Delios, 1997), a potentially issue that often remains unresolved is how to protect your core competencies, while still cooperating openly with your partner, particularly when advanced technology is involved. It can be difficult for partners in an alliance to cooperate and openly share strategic know-how. Cooperation and openness are necessary, however, if a joint venture is to succeed. Since the success of any strategic alliance is based on cooperation, trust and an open sharing of competencies, potentially sensitive knowledge might be exposed through the joint venture. This is why many executives regard strategic alliances with reservation (Lorenz, 1992). They resist giving away core strategic competencies that might be misused in other contexts.


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