Global Business Alliances: Theory and Practice

By Refik Culpan | Go to book overview

Introduction

In recent years, businesses’ engagements in international alliances has been augmented considerably. While the popularity of such cross-border partnerships has stimulated the formation of a variety of collaborative arrangements between firms, this movement presents a paradox for researchers and managers. On one hand, a traditional view of interfirm competition suggests that businesses are naturally involved in fierce competition with their rivals. On the other hand, today’s firms—especially multinational players—recognize the benefits of collaborative ventures. From a strategic point of view, multinational corporations (MNCs) have changed their traditional views of competition and have adopted a variety of new and flexible approaches for achieving sustainable competitive advantages. Such a shift in their business strategies has become more vivid today than ever before. In particular, the frequent use of business alliances as an indispensable tool in their strategic repertoire has manifested itself in the global business. MNCs have started to build business alliances even with their competitors. For example, it is interesting to observe that while two giant automobile manufacturers, General Motors and Toyota, compete intensively, they have built a joint venture called New United Motor Manufacturing Incorporation (NUMMI) in Fremont, California and are manufacturing cars together. This incident is not isolated, however—a number of companies have formed a variety of alliances in telecommunications, pharmaceutical, airline, and steel industries. Similarly, Bell Atlantic/GTE of the United States and Vodafone AirTouch of Britain formed Verizon Wireless, a joint venture to compete in the U.S. market. Also, Hitachi of Japan and TRW of the United States formed a strategic alliance to pursue opportunities in space technologies. McDonnell-Douglas Space Systems and Shimizu, a Japanese architectural and

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Global Business Alliances: Theory and Practice
Table of contents

Table of contents

  • Title Page iii
  • Contents vii
  • Contents ix
  • Contents xi
  • Preface xiii
  • Introduction 1
  • 1 - Competition and Cooperation 5
  • 2 - Theoretical Foundations 17
  • 3 - International Business Strategy and Alliances 43
  • 4 - Equity Alliances 73
  • 5 - Non-Equity Alliances 87
  • 6 - Global Alliances in the Automobile Manufacturing Industry 105
  • 7 - Global Alliances in the Pharmaceutical Industry 143
  • 8 - Global Alliances in the Airline Industry 165
  • 9 - Global Alliances in the Telecommunications Industry 183
  • 10 - Alliance Management 203
  • Index 221
  • About the Author 224
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