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Global StrategyCreating and Sustaining Advantage across Borders$
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Andrew Inkpen and Kannan Ramaswamy

Print publication date: 2005

Print ISBN-13: 9780195167207

Published to Oxford Scholarship Online: September 2007

DOI: 10.1093/acprof:oso/9780195167207.001.0001

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International Strategic Alliances

International Strategic Alliances

(p.80) 4 International Strategic Alliances
Global Strategy

Andrew Inkpen (Contributor Webpage)

Kannan Ramaswamy (Contributor Webpage)

Oxford University Press

This chapter examines the nature of alliances with an emphasis on collaborative arrangements that create mutual benefits for the partners. Although once considered peripheral to competitive strategy, alliances have entered the mainstream and should be viewed as an integral and mandatory strategic tool for global strategy. The chapter analyzes the multiple reasons why firms choose to use strategic alliances, and considers various explanations for the rising trend in the number of alliances being formed each year. The discussion then shifts to the competitive risks and problems with alliances and some of the organizational approaches to maximizing partner mutual benefit. It argues that while some alliances may result in a zero sum game of winners and losers, if alliances are to be an integral element of global strategy, firms should seek partners with whom they can achieve an effective working relationship through the linkage of complementary assets.

Keywords:   joint ventures, mutual benefit, risk, organization, culture

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