scholarly journals Alliance formation: A Study of the Malaysian Automobile Supporting Industry

2010 ◽  
Vol 12 (3) ◽  
pp. 355
Author(s):  
Ahmad Bashawir Abdul Ghani ◽  
Malcolm Tull
Keyword(s):  
Automobile Industry ◽  
Strategic Alliances ◽  
Strategic Alliance ◽  
Joint Venture ◽  
Foreign Market ◽  
Alliance Formation ◽  
Mode Of Entry ◽  
Parent Firm ◽  
Using Data ◽  
Set Up

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

Black-Box Protection of Core Competencies in Strategic Alliances

2000 ◽  
Vol 6 (2) ◽  
pp. 32-43 ◽  
Author(s):  
Michael Milgate
Keyword(s):  
Strategic Alliances ◽  
Strategic Alliance ◽  
Joint Venture ◽  
Core Competencies ◽  
Black Box ◽  
Advanced Technology ◽  
Proprietary Information ◽  
Know How ◽  
Sensitive Knowledge ◽  
Cooperative Venture

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.

scholarly journals Exploring Critical Success Factors of Competence-Based Synergy in Strategic Alliances: The Renault–Nissan–Mitsubishi Strategic Alliance

2021 ◽  
Vol 14 (8) ◽  
pp. 385
Author(s):  
Andrejs Čirjevskis
Keyword(s):  
Strategic Alliances ◽  
Critical Success Factors ◽  
Success Factors ◽  
Strategic Alliance ◽  
The Arctic ◽  
Future Research ◽  
Alliance Formation ◽  
Quantitative Research Methods ◽  
Critical Success ◽  
The Impact

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.

scholarly journals Innovation Capabilities and Performance of Malaysian Agricultural SMEs: The Moderating Role of Strategic Alliance

2021 ◽  
Vol 22 (2) ◽  
pp. 675-695
Author(s):  
Nurul Izni Kamalrulzaman ◽  
Azlinzuraini Ahmad ◽  
Akmalia Mohamad Ariff ◽  
Mohd Shaladdin Muda
Keyword(s):  
Strategic Alliances ◽  
Resource Sharing ◽  
Strategic Alliance ◽  
Joint Venture ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
World Market ◽  
Market Demand ◽  
The Relationship

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.

Sport Licensing and Internationalization: A Case Analysis of the Reebok Bike Business

2013 ◽  
Vol 2 (1) ◽  
pp. 45-56
Author(s):  
Mark Hecox
Keyword(s):  
Strategic Alliance ◽  
Potential Role ◽  
Distribution Channel ◽  
Cultural Influences ◽  
Foreign Market ◽  
Market Selection ◽  
Operating Model ◽  
Alliance Partner ◽  
Mode Of Entry ◽  
Brand Position

Reebok officially entered the bike business after 15 years of deliberation and strategic re-tooling. This case presents a situation that considers how the process of internationalization may be impacted by various factors both internal and external to the firm. The analysis examines multiple marketing elements, including brand position, product development, distribution channel, pricing, promotion, and operating model. The focus of decision making in the case centers on the use of licensing and determining possible alliance partner structures as possible solutions to enable Reebok to enter the global bike business successfully. Specific internationalization elements explored include mode of entry, foreign market selection, cultural influences, supply chain, operating model, and licensing strategic alliance partner strategy. This case provides an ideal opportunity to explore and analyze why and how a sport enterprise might want to internationalize its business and the potential role sport licensing might play in the process.

COMPANY NEWS

2001 ◽  
Vol 05 (06) ◽  
pp. 105-109
Keyword(s):  
Clinical Trial ◽  
Collaborative Research ◽  
Strategic Alliance ◽  
Joint Venture ◽  
Stock Exchange ◽  
Japanese Firm ◽  
Set Up

SurroMed and Affymetrix to Set Up R&D Facilities in Singapore. Ranbaxy to Quit Joint Venture with Eli Lilly. Japanese Firm Starts Clinical Trial of HIV Drug. AlphaRx and PanBiotic to Form Strategic Alliance. Collaborative Research Between Roche and China on Genes Linked to Diabetes. New Bht300 million Plant for Surgical Products to be Set Up in Thailand. MicroMedical Scores New Goals. Entigen and University of Sydney Win Award for Collaborative R&D. PanBio to List on Australian Stock Exchange.

How cultural distance affects the formation of international strategic alliance – an explanation of the transaction costs theory

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ming Ning Xiong ◽  
Tao Wang ◽  
Peng Zhao
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Strategic Alliances ◽  
Strategic Alliance ◽  
Cultural Distance ◽  
Transaction Cost Theory ◽  
Alliance Formation ◽  
Content Type ◽  
Underlying Mechanisms ◽  
The Impact

Purpose Based on the transaction cost theory, this paper aims to investigate the impact of cultural distance on international strategic alliance formation and its underlying mechanisms. Design/methodology/approach This paper uses the investment of foreign firms in the Chinese Venture Capital market as an empirical background, Obtaining VC data from Zero2IPO Private Equity, CVsource Investment Database (2001–2015). This paper chooses the Logit regression method, according to Lind’s three-step method to test the inverted U-shaped relationship. Findings The empirical analysis of foreign venture capital firms invested in China revealed that there is an inverted U-shaped relationship between cultural distance and the possibility of international strategic alliances. This relationship is the result of two opposing mechanisms, which are the need and the feasibility of international strategic alliances. In addition, this study further examined the moderating effects of social embeddedness and social reputation, revealing the boundary effects on the complex relationship between cultural distance and possible international strategic alliance formation. Originality/value This study focuses on cultural difference, which is a key factor leading to a firm’s transaction costs. Based on the transaction cost theory, this paper investigates the impact of cultural distance on international strategic alliance formation and its underlying mechanisms.

The role of strategic alliances in complementing firm capabilities

2012 ◽  
Vol 18 (6) ◽  
pp. 858-869 ◽  
Author(s):  
John Rice ◽  
Tung-Shan Liao ◽  
Nigel Martin ◽  
Peter Galvin
Keyword(s):  
Strategic Alliances ◽  
Strategic Alliance ◽  
Life Cycles ◽  
Transfer Of Knowledge ◽  
Alliance Formation ◽  
Firm Capabilities ◽  
External Resources ◽  
Cost Minimisation ◽  
Industry Life Cycles

AbstractStrategic alliance research emerged to explain alliance formation based upon transaction cost minimisation and opportunism reduction. Later research, and early research from Japan, emphasised the role of alliances in facilitating the transfer of knowledge between organisations. Most recently, alliance research has focussed on the development of shared, potentially idiosyncratic, resource stocks. This paper builds on this recent research, testing the proposition that alliances are important vehicles allowing firms to access or acquire external resources, hence shoring up capability gaps and building new capabilities as required during firm, product and industry life cycles. Using a sample from Australian manufacturing small-and-medium-sized enterprises, the paper reveals that alliances employed by firms can be viewed as initiatives to either fill a gap in the firm's resource stock or to exploit a perceived opportunity in its operational and strategic environment.

The role of strategic alliances in complementing firm capabilities

2012 ◽  
Vol 18 (6) ◽  
pp. 858-869 ◽  
Author(s):  
John Rice ◽  
Tung-Shan Liao ◽  
Nigel Martin ◽  
Peter Galvin
Keyword(s):  
Strategic Alliances ◽  
Strategic Alliance ◽  
Life Cycles ◽  
Transfer Of Knowledge ◽  
Alliance Formation ◽  
Firm Capabilities ◽  
External Resources ◽  
Cost Minimisation ◽  
Industry Life Cycles

AbstractStrategic alliance research emerged to explain alliance formation based upon transaction cost minimisation and opportunism reduction. Later research, and early research from Japan, emphasised the role of alliances in facilitating the transfer of knowledge between organisations. Most recently, alliance research has focussed on the development of shared, potentially idiosyncratic, resource stocks. This paper builds on this recent research, testing the proposition that alliances are important vehicles allowing firms to access or acquire external resources, hence shoring up capability gaps and building new capabilities as required during firm, product and industry life cycles. Using a sample from Australian manufacturing small-and-medium-sized enterprises, the paper reveals that alliances employed by firms can be viewed as initiatives to either fill a gap in the firm's resource stock or to exploit a perceived opportunity in its operational and strategic environment.

scholarly journals Strategic Alliances between Japanese-Western Companies: A Win-Win or Win-Lose Relationship? The Case of the Automobile Industry

2016 ◽  
Vol 11 (11) ◽  
pp. 1
Author(s):  
Luca Petruzzellis ◽  
Antonia Rosa Gurrieri ◽  
Alberto Pezzi ◽  
Marco Lenoci Lenoci
Keyword(s):  
Automobile Industry ◽  
Strategic Alliances ◽  
Wealth Distribution ◽  
Global Market ◽  
Business Environments ◽  
Firm Cooperation ◽  
Market Opportunities ◽  
Set Up ◽  
The Individual ◽  
Japanese Companies

<p>Inter-firm cooperative arrangements involving flows and linkages that use resources and/or governance structures from autonomous firms based in different countries help in accomplishing both the individual objectives and the collective ones. Through collaboration with foreign partners, firms are able to exploit new market opportunities, minimise investment risks, set up more efficient and effective distribution channels or create products, product features, brands or services and, above all, absorb key capabilities and technologies from the partner. Literature on strategic alliances raised the issue on an alleged appropriation of benefits by Japanese firms when participating in strategic alliances. Japanese companies have experienced higher shareholders’ returns in strategic alliances with Western partners, both in the short term and in the medium one. The choice of Japanese and Western companies calls for a deeper understanding of the drivers of the alliances and the determinants of value creation without misleading influences deriving from different business environments.</p>This paper analyzes the wealth distribution taking into account the reaction of the market to the alliance as an indicator of a successful strategy. It explores the case of the automobile industry, which is characterised by a high use of inter-firm cooperation, such as strategic alliances and mergers &amp; acquisitions, to effectively compete in the global market and face the global crisis.

scholarly journals UNDERSTANDING STRATEGIC ALLIANCE LIFE CYCLE: A 30 YEAR LITERATURE REVIEW OF LEADING MANAGEMENT JOURNALS

2020 ◽  
Vol 21 (2) ◽  
pp. 519-530
Author(s):  
Mayank Dhaundiyal ◽  
Joseph Coughlan
Keyword(s):  
Literature Review ◽  
Strategic Alliances ◽  
Strategic Alliance ◽  
Life Stages ◽  
Alliance Formation ◽  
Research Papers ◽  
Major Life ◽  
Alliance Management ◽  
Holistic Understanding ◽  
And Performance

This paper contributes to the strategic alliance literature by undertaking a literature review of the burgeoning strategic alliance literature published in the last three decades in the mainstream management journals to fulfil two primary objectives. First, to bring a coherent structure into the fairly vast and growing alliance literature and second, to serve as a medium for a holistic understanding of the major life stages of strategic alliances. This is done by first dividing the alliance literature into three distinct yet related alliance life stages namely the pre-alliance stage, alliance formation stage and the alliance management and performance stage, and then by discussing in detail the three alliance stages individually. The paper would be useful for academics as well as practitioners looking to get a holistic understanding of strategic alliances and its three distinct yet related life stages and the key research papers which have been published focussing on each of these alliance stages.

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